ANNUITIES PREPARE FOR - Allstate

ANNUITIES

PREPARE FOR YOUR RETIREMENT WITH CONFIDENCE.

Annuities

A plan for retirement that's in your hands: from savings to payout.

If you're uncertain about how to reach your retirement goals, an annuity could be a right choice for you. An annuity puts you in the driver's seat -- from initial planning and saving, to payout. And it's straightforward and easy to understand.

Typically, you can choose how to make your initial payment: either as a one-time deposit or a series of payments over a specified period of time. You can also select the length of time you want your money invested.

Then at the end of your investment period, you can decide how you'd like to receive your benefits: as a lump sum -- or as a regular payment or "paycheck" for life, or for a specific number of years.

A confident way to address retirement goals.

With this level of control, you can have confidence that you are on track to meet your retirement goals -- and have a retirement income you can count on. By including annuities in your retirement planning, you're relying on a solid strategy to achieve the comfortable lifestyle you're dreaming of -- and the ability to maintain it throughout your retirement years.

Managing a Lifetime of Financial Goals

Note: These are just examples of how this might work for you.

Estate Planning

Retirement Income

Gifting

Other Insurance

Umbrella Liability Insurance

Long Term Care Insurance

Savings

- Checking Accounts - Savings Accounts - Money Markets

Investments

- IRAs - Stocks & Bonds - Employee Retirement

Plans

- Annuities - College Planning - Mutual Funds

Health Insurance

Auto Insurance

Homeowners/ Property Insurance

Disability Income Insurance

Life Insurance

Emergency Fund

Wills/ Trusts

How do annuities fit into your financial plan?

An annuity can help meet many types of financial needs: retirement, wealth transfer or other savings goals. Your Allstate agency can help you think through your financial situation -- and determine how an annuity might fit into your overall financial plan.

Here are just some of the ways an annuity might meet your needs: ? You need a predictable source of income you can't outlive ? You are interested in investments with tax advantages ? You have a loved one who may need financial assistance after you're gone ? You are changing jobs or retiring and want to diversify your retirement savings ? You want the option to access a portion of your money without surrender charges

in case you need it.

" With both of us working, it's hard to find time to plan and save for the future. Choosing an annuity made it easier.

"

Choose the annuity that's right for you.

An annuity offers you several ways to put your money to work. If you like the peace of mind of having a guaranteed interest rate, you may want to consider a fixed annuity.

Fixed Annuity

? Fixed interest rate ? Earns a guaranteed return ? Low risk

Variable Annuity

? Interest rate changes with market performance ? Greater opportunity for growth ? Higher risk

If you want more opportunity for growth, you may want to consider a fixed indexed, equity-linked, or variable annuity. The option that works for you will depend on your savings needs and your level of comfort with market ups and downs.

Fixed Indexed and Equity-Linked Annuities

? Interest rate is linked to a market index (such as S&P 500) ? More opportunity for growth ? Some protection from downside risk

Single Premium Immediate Annuity

If you are near or at retirement, another way to create a guaranteed "paycheck" is with a single premium immediate annuity. By putting a lump sum into an annuity you get: ? A predictable, guaranteed immediate income for life and a set period of time ? No downside market risk

Creating a predictable income stream.

One of the most attractive features of an annuity is the ability to convert it into regular, guaranteed payments, known as "annuitization". Knowing you will receive a steady source of income to supplement Social Security or a pension can give you peace of mind as you approach retirement.

You can choose from a variety of payout options, depending on your situation and the level of income you want. You can also choose to provide income for your spouse, if married. You can choose to receive guaranteed payments for life -- or over a specific number of years.

More reasons to consider annuities.

The ability to create a stream of income to replace your paycheck when you retire is a big reason why many people choose annuities -- but it's not the only reason.

Grow your savings faster.

Annuities offer another key benefit: tax-deferred growth. This feature allows your money to grow faster than in a comparable taxable account. That's because you don't pay taxes on any earnings until you withdraw your money.

This tax-deferred advantage can add up over time, particularly if tax rates increase or your income tax bracket changes. When you start receiving payments in retirement, you may be able to minimize the amount of tax you owe, since your tax bracket is likely to be lower at that time.

Access to your money if you need it.

While annuities are designed to be held for the long term, there are often ways to access your money without surrender charges before the end of your investment period.

For example, you may be allowed to withdraw a certain percentage of the annuity value each year without incurring those charges. With an emergency waiver, if certain conditions apply, you can withdraw the entire available balance of your contract. Keep in mind that a 10% premature distribution tax penalty may apply to withdrawals taken prior to age 59? unless an exception applies1.

Leave more to loved ones.

Annuities not only benefit you during your retirement years, they allow you to leave money to loved ones as well. If you should die, proceeds from an annuity are distributed to your beneficiaries free of the complicated and lengthy legal process of probate, which can also be costly. That means more of your money can go directly to those you leave behind without hassle.

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