An annuity, usually sold by an insurance company, is either a fixed contract or a variable contract. The biggest difference lies in the accumulation period of each. In a fixed annuity, the contract offers a guaranteed interest rate which the insurance company credits to the policy. It gives a competitive return that is very safe. A variable contract, however, allows the premium to be allocated among a number of investment portfolios which is subject to market risk, including the possible loss of principal. The owner of the policy can feel safe knowing that if he/she dies, the beneficiaries will receive a Guaranteed Death Benefit even when the market is down.
Variable annuities are long-term, tax-deferred investment vehicles designed for retirement purposes and contain both an investment and insurance component. They are sold only by prospectus. Guarantees are based on claims paying ability of the issuer. Withdrawals made prior to age 59 ½ are subject to 10% IRS penalty tax and surrender charges may apply. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. The investment returns and principal value of the available sub-account portfolios will fluctuate so that the value of an investor’s unit, when redeemed, may be worth more or less than their original value.
Call one of our financial consultants or 808-356-5199 to learn more about annuities.
The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.
Securities are offered through LPL Financial (LPL), a registered broker-dealer (member FINRA / SIPC). Insurance products are offered through LPL or its licensed affiliates. Territorial Savings Bank and Investment Services at Territorial Savings Bank are not registered as a broker-dealer. Registered representatives of LPL offer products and services using Investment Services at Territorial Savings Bank, and may also be employees of Territorial Savings Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Territorial Savings Bank and Investment Services at Territorial Savings Bank. Securities and insurance offered through LPL or its affiliates are:
|NOT INSURED BY FDIC OR ANY OTHER GOVERNMENT AGENCY | NOT BANK GUARANTEED | NOT BANK DEPOSITS OR OBLIGATIONS | MAY LOSE VALUE|