C150251 Feasibility Study - Laserfiche WebLink

Home Browse Search

. Variable Annuity Disclosure Statement 4YA,C:HOYIA SEctrscre oarwr.Paracirentenarfee _.. ._. -1 MONTEZUMA VALLEY IRRIGATION COMPANY No or Pr;e;I as AccoariI 0 PreditGe Prudential Premier L Share 60342109 ArrnunI $ 1500000.00 fFrom(Marne or Insurance Company) 1035 Eacfanse or IRWCaaMrca Pruco Lila Insurance Company of Arizona Transfer e411mamtl Amount $ 0 Wachovia Securities (WS) and your Financial Advisor (FA)want to help you achieve your long-term financial objectives. We value our relationship with our clients and want to help you make informed decisions about your financial future. Before you purchase an annuity,we want to make sure you understand the following: I. LONG-TERM-Variable annuities are designed to be long-term Investments. You should consider another Investment If you anticipate a need to access a substantial amount of these funds in the near term. 2. NOT A LIQUID INVESTMENT-Variable annuities have limitations on the amount of funds that may be withdrawn without a charge. You should consider the limits on amounts that may be withdrawn free of surrender charges(typically 10%of your initial investment per year)before you Invest and you should have other liquid sources of funds. 3. SURRENDER CHARGES-Variable annuities have surrender charges for a specified period of time. The surrender charge means that you may not get all your money back if you surrender your contract. In the case of a full or partial surrender(defined as withdrawals in excess of the allowable amount specified by the issuing insurance company),you will incur the following penalties during the surrender charge period,as set forth in the prospectus,and summarized below_ Year 1 2 j 3 4 5 1 6 7 8 9 10 Thereafter Penalty 7 % 7 % 6 % 5% 0 % 96 9; Check Prospecfus_ 4. IMMEDIATE VARIABLE ANNUITY TERMS - Immediate Variable Annuities offer a stream of income payments that will change during the term of the payout period in exchange for a lump sum investment. These payments will vary up or down following the first payment depending on the performance of the underlying subaccounts owned in the contract The underlying subaccounts are in professionally managed investment options that invest in the stock and/or bond markets. The investment options can provide you with potentially more income than immediate fixed annuities,but your Income payments will go up or down based on the performance of the investment options chosen. The payments usually take 30 days to begin, and can be structured in a number of different ways. Payment options include: period or term certain annuitization where payments are made for a specified period or term such as 10 years;life annuitization where payments last for the life or pint life of the contract annuitant(s); or life with period certain annuitization where payments last the longer of the life of the annuitant(s)or the period certain period. If the payment period has not ended and the contract payments are continued under the contract, the contract beneficiaries will receive the remainder of the required payments. Once the payment period has ended the ownerlannuitant will not receive any additional payments and will not receive any additional principal payment. Payment intervals can be structured to take place monthly,quarterly,semi-annually,or annually depending on the terms and conditions of the contract These payout options typically can not be changed once the client has selected them.Given the irrevocable nature of these contracts,investors should consider their financial ability to continue to hold their contract over the long-term. Immediate variable enmities are offered by prospectus only. The prospectus contains information about the product's features,risks,charges and expenses,and the investment objectives,risk and policies of the underlying subaccount portfolios, as wall as other information about the underlying funding choices. Read the prospectus and consider this information carefully before you invest. 5. MARKET RISK-You can lose money investing in variable annuities. Investing In variable annuities involve risks,including the potential loss of principal. The market value of variable subaccounts will fluctuate in value. 6. GUARANTEES-A variable annuity is a long-term financial product offered by insurance companies. Any guarantees offered in this annuity are backed by the claims-paying ability of the issuing insurance company. The features that are guaranteed do not mean you cannot lose money and in fact there is no guarantee that you will earn any return on your Investment. In most cases,the guaranteed features are effective upon the owner's death or annuitization of the contract. Riders and features can be complex.Riders and features may not be suitable for all investors. 7. TAX CONSIDERATIONS-A variable annuity is a tax-deferred Investment vehicle. You do riot pay taxes on earnings while your money is within the annuity. Certain corporations.trusts,and partnerships may be subject to taxes.Annuities may not be suitable for investors in the lowest tax bracket. Investors in the lowest tax bracket should consider whether the limited tax savings justify the cost of the investment. Withdrawals from an annuity policy may be subject to applicable federal and state income or premium taxes In addition, once purchased,your withdrawals may be subject to federal or state tax penalties, including a 10%federal tax penalty on any portion of any withdrawal prior to age 59'h that is included in gross income. If this is a qualified annuity(e.g., •retirement account or IRA),all distributions may be taxable. Neither WS nor your FA can offer tax,legal,or accounting advice. You are encouraged to contact your tax advisor regarding this transaction. 573901(Rev 04) Page 1 of 3 34