Annuities

Many people have made annuities part of their retirement plan – for good reason. Annuities can help provide for your retirement income needs. Fixed annuities, for example, can help protect against market losses, guarantee income and help maximize the wealth you pass on to your heirs.

How can fixed annuities help protect you?

You cannot predict market performance, inflation, future life events or how long you'll live. With an annuity's fixed rate of return, however, you can protect your principal and predict your earnings, which are not taxed until you withdraw your money. A financial advisor can explain how annuities may fit into your overall financial picture.

How annuities work

Simply put, an annuity is a contract between you and an insurance company. You pay the insurance company a single purchase payment or a series of purchase payments. In exchange, you'll have access to convenient withdrawal features and living benefits.

Annuities are unique because of their combination of tax deferral and the opportunity for a stream of income payments.

Fixed and variable annuities

There are two types of annuities – fixed and variable. The main difference is based on how the purchase payments are allocated. A financial advisor who is familiar with your financial goals, objectives and risk tolerance can help you determine which type of annuity might be right for you.

Fixed annuity advantages

Variable annuity advantages

Guaranteed rate of interest. The insurance company guarantees a minimum rate of interest that you will receive, based on the annuity you purchase. Security. Fixed annuities guarantee principal and a minimum interest rate, adjusted for any withdrawals. Flexible income options. Choose from a lump-sum payment, or equal payments over a period you select, including the rest of your life.

Growth potential. A variable annuity’s value may go up and down based on its investments, which can range from conservative to aggressive. You may allocate a portion of your earned money to a fixed account. Otherwise, you bear the investment risk. Diversification. You choose from a variety of investment options and enjoy tax-free transfers from one investment option to another. Flexible income options. You can choose a fixed or variable stream of income. With variable income, your payments are based on the performance of the underlying investment options. You can also choose between a lump-sum payment or equal payments over a period you select. Optional benefits. Choose from living and death benefit riders, available for an extra fee, that can provide more protection, growth and income opportunities.

Variable annuities are insurance products that are complex long-term investment vehicles that are subject to market risk, including the potential loss of principal invested. Before you invest, be sure to ask your financial professional about the variable annuity's features, benefits, risks and fees, and whether the variable annuity is appropriate for you, based on your financial situation and objectives.

All guarantees are based on the claims-paying ability of the issuing company and do not apply to the performance of the variable subaccounts which will fluctuate in value.

RiverSource^® Annuities

Ameriprise Financial offers a range of annuity products, issued by RiverSource Life Insurance Company and RiverSource Life Insurance Company of New York. These products offer unique combinations of features and benefits to help you in both stages of retirement — accumulating assets and taking income.

Performance of RiverSource Annuities

Annuity performance

Annuity unit values

Variable annuities are subject to market risks, including the potential loss of principal invested. Withdrawals from fixed or variable annuities may be subject to surrender charges penalties. Furthermore, withdrawals will be taxed and may be subject to a 10% IRS tax penalty for withdrawals before age 59 1/2.

You should consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options carefully before investing. For a free copy of the annuity's and underlying investment's prospectus, which contains this and other information about variable annuities, call (800) 437- 4332. Read the prospectus carefully before you invest.