Protect Retirement Income: Understand Sequence of Returns Risk | Charles Schwab

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Protect Retirement Income: Understand Sequence of Returns Risk

March 20, 2015

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Important Disclosures

Variable annuities are sold by prospectus only. You can request a prospectus by calling 1-888-311-4887 or by visiting schwab.com/annuity. Before purchasing a variable annuity, you should carefully read the prospectus and consider the investment objectives and all risks, charges, and expenses associated with the annuity and its investment options.

Past performance is no guarantee of future results. Forecasts contained herein are for illustrative purposes, may be based upon proprietary research and are developed through analysis of historical public data.

Variable annuities are long-term investment vehicles designed for retirement purposes. The value of a variable annuity may be more or less than the premiums paid and it is possible to lose money.

Variable annuities offer tax deferral on potential growth. Withdrawals prior to age 59½, however, may be subject to a 10% federal tax penalty in addition to applicable income taxes. Variable annuities are also subject to a number of fees including mortality and risk expense charges, administrative fees, premium taxes, investment management fees, and charges for additional optional features. Although there are no surrender charges on the variable annuities offered by Schwab, such charges do apply in the early years of many contracts.

A Guaranteed Lifetime Withdrawal Benefit (GLWB) is an optional rider available for an additional cost. Withdrawals in excess of the specified annual amount may permanently and significantly reduce future income. Certain contracts may limit you to a pre-specified selection of investment options when you elect the GLWB.

Charles Schwab & Co., Inc., a licensed insurance agency, distributes certain insurance and annuity contracts that are issued by insurance companies that are not affiliated with Schwab. Not all products are available in all states.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. 

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed. 

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

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