• A Tax-deferred Fixed Annuity offers a guaranteed rate of return, determined by the insurance company for a set period of time. The insurance company resets the rate periodically and guarantees the rate will never fall below a minimum rate specified in the contract. Fixed annuities are typically deferred products that allow you to accumulate assets over time by allowing initial and subsequent payments.

• An Immediate Income Annuity is designed to generate an income payment shortly after it is purchased. The premium paid enables the product to begin generating income as quickly as one month from the purchase date. Immediate Income Annuities, like Fixed and Variable Annuity payout options, guarantee income payments that cannot be outlived.

Why Choose a Variable Annuity?

Variable annuities can provide long-term, tax-deferred growth as well as death benefit protection for your family. Generally, there's no limit on how much you can invest in a variable annuity, making it an excellent way to supplement other retirement choices that may have investment limits. With variable annuity sales of approximately $63.2 billion as of the third quarter of 1997, the variable annuity industry is on target to surpass last year's sales of $74 billion.

A variable annuity can provide some of the key ingredients of successful retirement planning:

• The growth potential of stocks: Many variable annuities allow you to invest in a wide range of investment options that reflect the value of the underlying variable investment options.

• A range of investment options: Variable annuities typically offer a range of investments, such as stock portfolios, bond portfolios and interest rate options providing a guaranteed rate of return over a fixed time period.

• Tax-deferral: While your initial payments are not tax deductible, contract value growth is not taxed until you begin withdrawals.²

• A variety of payout options: Flexible payout schedules let you tailor your income to your needs.

• Death benefit: Most variable annuities guarantee to pay at least the full amount of your initial investment to your beneficiary (usually a spouse or other family member) in the event of your death prior to annuitization.

• An unlimited, tax-deferred investment (outside of a qualified plan): You can generally make unlimited contributions even if you are already contributing the maximum to a 401(k) or other retirement plan.

Why Choose a Fixed Annuity?

Fixed annuities can provide a guaranteed income for life. Like variable annuities, there is no limit to how much you can invest outside of a qualified plan. The assured returns fixed annuities offer have long been a popular choice for building retirement income.

Fixed annuities can be an excellent way to build retirement assets for investors who prefer a more conservative strategy. Their advantages include:

• Pre-set income amount: You'll have the security of knowing that you'll receive a pre-set amount of income starting on a certain date and continuing for a set period. Most fixed annuities offer a lifetime payment option.

• Tax-deferral: While your initial payments are not tax deductible, payout amounts are not taxed until you begin to actually receive them.

• A variety of payout options: Fixed annuities generally guarantee to pay at least the full amount of your initial investment to your beneficiary (usually a spouse or other family member) in the event of your death prior to annuitization, and provide an option if you wish to leave payments as a legacy to provide income for a spouse or other survivor.

Why Choose an Immediate Income Annuity?

Immediate income annuities are typically funded with a single purchase payment and offer a guaranteed income that can't be outlived. This means that payments are made for as long as the annuitant or last surviving annuitant lives. Additionally, immediate income annuities can provide a guaranteed income for a specific period of time only--for instance, 10 or 20 years. Immediate income annuities are generally used to supplement Social Security payments, pensions and other retirement benefits.

Immediate income annuities are an excellent option for investors who require income payments to begin shortly after a plan is purchased. Their features include:

• Purchase payment: Immediate income annuities are typically funded with a single purchase payment.

• Payout: The payout amount is determined by the amount of the purchase payment, the payout option selected, and the age and gender of the individual.

• Tax: If the purchase payment funding the contract is non-qualified money, the payments are considered part return of principal (non-taxable) and part earnings (taxable). Once the principal has been depleted, your investment return will be paid and considered fully taxable. If the purchase payment funding the contract is tax-qualified, the benefit payments are generally fully taxable.

Preferred Securities Group, Inc.
5301 N. Federal Highway, Suite 150
Boca Raton, Florida 33487
1-800-909-9150
Tel. (561) 998-2170
Fax (561) 998-2177
Email: info@preferredsecurities.com

Member N.A.S.D., S.I.P.C.
Florida