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The Variable Annuity Advantage

The way we retire is changing. Americans today face new challenges and opportunities, including the need to create income that can stretch across the remainder of their lives. To fund retirement today, investors need strategies that provide:

  • Participation in the equity markets
  • Protection against downside risk
  • Predictability of income they can't outlive

A variable annuity, through both standard and optional features, offers a unique combination of growth and protection opportunities not typically found in other investments. It's a combination that can help provide you with confidence in your retirement plan today and tomorrow.

Recent research shows that ensuring guaranteed income for life and protecting assets are serious financial concerns for Americans. In fact, more than 90% of Americans age 45+ surveyed said ensuring income for life and protecting assets were top priorities.1 To meet investors changing needs, variable annuities have evolved to offer the optional lifetime income solutions Americans are demanding—complete with growth potential, protection against market risk and guarantees that income can last a lifetime. With a variable annuity, you can:

  • Participate in the equity markets for long-term growth potential. Variable annuities offer a wide range of investment choices and professional money management. They also allow you to defer taxes on your investment earnings until you take income. So, money that might have gone to taxes instead stays invested for greater growth potential.
  • Turn your assets into income you'll never outlive. A variable annuity can help you create a guaranteed lifetime income stream—for you and your spouse—through what's known as "annuitization." Optional benefits are also available, for an additional annual fee, to help you ensure a consistent stream of income that has the potential to rise and that will last a lifetime, regardless of what happens in the market. 
  • Protect your loved ones from the unexpected. A variable annuity can also help you provide for your beneficiaries with a standard death benefit should you die while still saving for retirement. Many variable annuities go even further and offer optional enhanced benefits, for an additional fee, that lock in investment gains and may offer a guaranteed rate of return on purchase payments.

Please note: Optional retirement income and death benefits are available for an additional annual fee and subject to certain restrictions and limitations. Please see the prospectus for details. If you are considering funding a tax-qualified retirement plan, such as an IRA or 401(k), you should know that a variable annuity does not provide any additional tax deferral treatment beyond the treatment provided by the tax-qualified plan itself. Guarantees are backed by the claims-paying ability of the issuing insurance company. An investment in a variable annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested.

A Unique Combination of Benefits
Variable annuities are one of the only investments today that combine all of these benefits to help you tackle the key retirement challenges.

 VAAdv Chart Vs3-1-09

Ask your financial advisor how a variable annuity from SunAmerica can be an important part of your overall long-term financial plan.

Note: Investments in stocks, mutual funds and variable annuities are subject to risk, including the possible loss of principal. Government Bonds and Treasury Bills are guaranteed by the U.S. Government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. Variable annuities include insurance features such as a guaranteed death benefit and income options for which you pay certain fees and charges, including mortality and expense risk charges, an administrative charge and withdrawal charges, plus the cost of optional features. Expenses associated with the operation of the variable portfolios also apply.

There are a number of differences between mutual funds and variable annuities. Mutual funds serve various short- and long-term financial needs, while variable annuities are designed specifically for long-term retirement savings. Mutual funds capital gains and dividends, which can be taxed at a rate lower than your income tax rate, are generally taxable for the year in which they are earned; interest is generally taxed at your income tax rate. Annuities are insurance products whose gains accumulate tax-deferred. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty may apply.

While variable annuities are tax-deferred regardless of whether invested in a qualified plan, other investments shown above do not have the benefit of tax deferral unless they are invested in a qualified plan such as IRA, 
401(k), 403(b) or other qualified plan. Be sure to talk to your financial advisor about your particular situation before you invest.

1 America Speaks Out: 2009 Investor Survey conducted by Harris Interactive and sponsored by SunAmerica.

M4594VA.4 (10/09)

Annuities are designed for long-term retirement investing. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. An investment in a variable annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. Tax-qualified plans, such as an IRA, 401(k), etc., are tax-deferred (and subject to required minimum distributions) regardless of whether or not they are funded with an annuity.

Variable annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. A prospectus may be obtained from your financial advisor or by calling 1-800-445-7862. Please read the prospectus carefully before investing.

This material was prepared to support the marketing of the SunAmerica Variable Annuities. Please keep in mind that American General Life Insurance Company (American General Life), SunAmerica, and their distributors and representatives may not give tax, accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Such discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are subject to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete information concerning your particular circumstances and any tax statements made in this material.

Variable annuities are issued by American General Life Insurance Company (American General Life), except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life). Products are marketed by SunAmerica, The Retirement Specialist. All products may not be available in all states. The purchase of a variable annuity is not required for, and is not a term of, the provision of any banking service or activity.

Distributed by AIG Capital Services, Inc., 21650 Oxnard St., Suite 750, Woodland Hills, CA 91367-4997,






May Lose Value No Bank or Credit Union Guarantee

Not a Deposit Not Insured by any Federal Government Agency