Index Annuities

You have a lot of choices when it comes to how you’ll create and draw your retirement income.

As you make decisions about how you’ll fund your retirement, you must first consider a few key questions:

What are your retirement investment goals?

An index annuity may be suitable for people who:

• Are looking for tax-deferred growth in their investment.
• Want a minimum interest rate guarantee but also like the idea of potentially being able to benefit from rising markets

With an index annuity, you receive a guaranteed minimum interest rate, but could potentially receive a higher crediting rate based on the performance of one of a variety of market indices. There are many types of index annuities and your financial professional can show you more specifically how an index annuity may be suitable for you.

More Good News

While your money is in the annuity, your earnings grow tax-deferred, meaning you will not pay income taxes on that growth until it’s withdrawn from the annuity.

Here’s the best part: Because you’re not paying current income taxes on those earnings…your annuity can grow faster because the money that may have had to be withdrawn from the annuity to pay income taxes can stay in the annuity and continue to grow.

What is your time horizon?

It’s important to remember that an annuity is for long term retirement investing. If you need money from your annuity in the early years of your contract, there may be a surrender charge (see the terms of your specific annuity contract) in addition to a 10% penalty tax if you take withdrawals before the age of 59 ½.

(There are exceptions to this rule that your financial professional can tell you about)

How and when would you like to begin withdrawing income from you annuity?

There are many income and withdrawal options with annuities:

When you’re ready to start receiving income from your annuity, some of your options may be:

• Take random “lump sum” withdrawals (subject to the terms of your annuity contract)
• Set up systematic withdrawals. You tell the annuity company how much income you want and how often, when to start the withdrawals and when to stop.
• Annuitize the contract and choose an income option.

If you die before you annuitize your contract, your annuity will pass to your beneficiari(es) without the cost and delay of probate.

If you’ve already annuitized your contract, the income option you chose when you annuitized will determine how much money goes to your beneficiari(es).

Let’s Recap

Annuities may be a good choice for a portion of your retirement savings. Annuities can help you reach your retirement income goals with the choice and flexibility they can offer.

Learn more about annuity choices offered through one of the ING family of companies by visiting with your financial services professional. He/she can help you determine what type of annuity may be suitable for a portion of your retirement savings.

Index annuities are issued by ING USA Annuity and Life Insurance Company, a member of the ING family of companies.

Index annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and earnings potential that is linked to participation in the growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees are backed by the financial strength of the issuing insurance company. Investors are cautioned to carefully review an index annuity for its features, costs, risk and how the variables are calculated.