annuityDuring recent years, variable annuity contracts have been developed in response to an increasing desire to avoid taxes, and to reduce risks.

A variable annuity differs from more traditional products sold by insurance companies in that the contract values are not guaranteed. However, now many annuity companies will guarantee a minimum income at some point in the future for the investor. Other companies will guarantee a return of your principal over time. These products have developed to the point that they now warrant serious consideration as an investment alternative. Of course, these guarantees are only as sound as the claims paying ability of the underlying insurance company.

The values in these contracts are dependent upon the performance of a separate account, but the money grows tax deferred. Thus, the investment risk is transferred from the insurance company to the purchaser of the product.

Smith, Brown & Groover, Inc. helps clients understand the benefits of long term tax-deferred growth, select the best guarantees that are currently available in the market, and manage the investment risks which are associated with deferred annuities.

As with all investments, we encourage the client to consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. This information may be found in the prospectus of each annuity which you may obtain at Smith, Brown & Groover, Inc., and we encourage you to read it carefully. Of course, you may lose money investing in a variable annuity and these investments are not guaranteed.