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Mutual Funds
Annuities
Kirtland Financial Services

Annuities
An Excellent Supplement to a Retirement Program

Variable Annuities
Tax-deferred Investing for Your Future Needs

Variable Annuities are insurance contracts designed to supplement a retirement program, serving as long-term savings vehicles and as efficient sources of retirement income. When purchasing a variable annuity your money is invested in separate accounts of the insurer made up of equity and/or fixed income funds.

The value of the annuity and the amount of income ultimately received is directly related to the performance of the funds that you've selected. The fund selection process is critical and will vary for each individual depending on the amount of risk you are willing to incur versus the return you're seeking.

A number of features make the variable annuity attractive for retirement savings:

• your money is tax deferred until withdrawn from the fund
• the ability to transfer money between funds tax-free should your investment objectives change
• payout choices at retirement include a lump sum or a monthly income guaranteed for life
• a guaranteed death benefit by the insurance company (during the accumulation phase) means that your beneficiaries will receive, at a minimum, no less than your original purchase payment(s)
• a wide selection of variable and fixed funds run by experienced money managers

Accumulation Period

There are two phases in the life of a variable annuity, an accumulation phase and a payout phase. In the accumulation phase, the value of the annuity will increase or decrease depending on the performance of the selected funds. The accumulation phase continues until the contract matures.

Payout Period

Upon maturity, the payout stage begins. In the payout phase, as the annuitant, you will begin receiving monthly payments that can be guaranteed for life. You will have a choice of payment options, and may receive fixed payments every month, variable payments every month, or a combination of both. Some companies offer an inflation protected lifetime payout increasing by the Consumer Pricing Index. Variable payments are based on the performance of the funds in which you've invested and as a result will vary from month to month. The payout stage continues until the annuitant dies or until the end of a fixed time period, depending on the payment option selected.

All in all, variable annuities can be a great investment vehicle to help you achieve a more secure and worry-free retirement.

Variable Annuities are offered by prospectus only. Prospectuses contain more complete information on management fees, charges, and other expenses and should be read carefully before investing or sending money.

Fixed Annuities

In general, you enter into a contract with an insurance company in which you agree to deposit a lump-sum or make a series of payments over a number of years. The insurance company invests your payments on your behalf and your money accumulates on a tax-deferred basis at guaranteed interest rates. At time of retirement, you can receive a guaranteed lifetime income, income for a specified period of time, or a lump sum. It's your choice!

There are also Fixed Indexed Annuities, which offers interest linked to a stock market index - generally the S&P 500 Index. When the index increases, a portion of those gains are credited. When the index decreases, no interest is credited, but your account value does not decrease - you cannot lose money because of market declines! And a minimum guarantee still applies, ensuring your account will grow regardless of the market environment.

Contact Us for More Information

To receive a no cost, no obligation consultation, or for more information, please email Todd Trevino, VP of Kirtland Financial Services or call (505) 254-4363 or (800) 880-5328 ext. 363.