Flexibility to adjust as your needs change … with short-term guaranteed interest.
Now you have the option to design your retirement solution with this single-premium, tax-deferred fixed annuity that offers short-term flexibility and low risk. With guaranteed interest earnings, protection from market volatility and lifetime payout options1, you also have the advantage of compounding interest.
Your fixed annuity offers an initial interest rate on the single premium that is guaranteed for four years with market value adjustment (MVA). A fixed annuity with an MVA typically offers a higher interest rate than a fixed annuity of the same time period without the feature.1
In addition to tax-deferred growth and no up-front sales charges or administrative fees, the American Pathway Fixed 4 Annuity includes income options that convert the contract balance into a guaranteed income stream for life.2
1 Withdrawals exceeding free amounts during the MVA term will be subject to a market value adjustment in addition to standard contractual withdrawal charges.
2 Annuitization required (the process of permanently converting the fixed annuity into a series of fixed payments). Once annuitization begins, you will no longer have access to your principal as a lump sum.
At the end of the initial interest rate guarantee period, a renewal rate will be declared annually and guaranteed for one year. The rate will not be less than the minimum guaranteed interest rate specified in your contract or applicable endorsement(s).
After the first contract year, you may make multiple penalty-free withdrawals (withdrawals without withdrawal charges or MVA) each year, not exceeding in total 5% of the previous anniversary contract value, without a withdrawal charge or MVA. If withdrawals are made during the first year or exceed the 5% free out annually during the remaining guarantee term, withdrawal charges and MVA will apply to the excess amount. You can always withdraw more than the free amounts at any time. During the withdrawal charge period, any amounts withdrawn over the free amount will incur a contractual withdrawal charge and an MVA which may reduce the amount of your withdrawal. After the withdrawal charge period (which is the same duration as the four-year initial guaranteed interest rate term), MVA and withdrawal charges do not apply.
A market value adjustment applies to withdrawals that exceed penalty-free amounts during the four-year initial interest rate period. The adjustment can either increase or decrease the withdrawal amount depending on the current interest rate environment. When interest rates at the time of a withdrawal are higher than the level at the time the contract is issued, the MVA will result in a decrease. If interest rates are down, the MVA will increase the withdrawal amount. An external index referenced in your contract is used to determine MVA.
The American Pathway Fixed 4 Annuity offers a conservative path. With the American Pathway series of annuities you can expect protection from market volatility, tax-deferred saving, guaranteed interest earnings and access to your money.
Ask your financial professional for more information about annuity solutions that can help you establish a reliable retirement income source.
Annuities are long-term retirement saving vehicles.
Guarantees are backed by the claims-paying ability of the issuing insurance company.
Retirement plans and accounts such as 403(b)s, IRAs, 401(k)s, etc., can be tax deferred regardless of whether or not they are funded with an annuity. Annuities Investment in an annuity within a plan does not provide additional tax-deferred treatment of earnings. However, annuities do provide other features and benefits.
This information is general in nature, may be subject to change and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your situation, consult your professional attorney, tax advisor or accountant.
Annuities issued by American General Life Insurance Company (AGL), except in New York where issued by The United States Life Insurance Company in the City of New York (US Life). Issuing companies AGL and US Life are responsible for financial obligations of insurance products and is a member of American International Group, Inc. (AIG).
American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions.
May not be available in all states and product features may vary by state. Please refer to your contract.
© American International Group, Inc. All rights reserved.
AC 449 (11/2017) J102879
Policy #s A219 3/4, AGE-8000 (12/12),
Rider #s R342-06, R347-06, R389-06
Not FDIC or NCUA/NCUSIF Insured. May Lose Value - No Bank or Credit Union Guarantee - Not a Deposit - Not Insured by any Federal Government Agency