Fixed Annuities deserve the attention of anyone interested in a guaranteed* retirement income stream. There are many benefits derived by including annuities in your retirement planning process. The advantages offered by fixed annuities include:

• Tax-deferred earnings accumulation
• Unlimited contributions
• Rates of return guaranteed by the issuing insurance company
• Various pay out options, including lifetime monthly payments to fund retirement
• No required distribution at 70 ½ on non tax-qualified annuities
• High interest rates, multi year guarantees from the issuing insurance company.
• Death benefits go directly to your designated beneficiaries
• Emergency liquidity
• Premium always 100% guaranteed by the issuing insurance company
• Guaranteed* minimum rate

These advantages are important considerations for investors seeking a predictable income stream through a conservative vehicle. Safety and preservation of the principal plus tax-deferred accumulations are among the numerous reasons for a 36% increase in fixed annuity investments over the last 12 months. It is easy to understand why annuities are so popular among clients planning for retirement.

Other Features and Details

Accumulation Period - refers to the time period when you are making contributions to your annuity.

Annuitization Period - refers to the time period when you are receiving payments from your annuity.

Single or Flexible Premium - you can make a lump sum contribution or schedule multiple payments to your annuity account.

Deferred Annuity - your contributions accumulate tax-deferred until you begin to take payments at a future date.

Immediate Annuity - your payments begin immediately.

Settlement Options - you have a variety of settlement (payment) options available. Based upon your income requirements for your retirement, you may choose a lifetime monthly payment guaranteed by the issuing insurance company, a 5-year payout, a 10-year payout and longer payouts offered by various insurers.

Tax Implications

Your investment grows at a specified rate on a tax-deferred basis. Typically a 5-year rate is chosen to lock in an advantageous yield. You pay no income taxes on your annuity until you begin taking payments. Your earnings are taxed as ordinary income when you receive payments. If you take payments prior to age 59 ½, you may incur a 10% penalty.

Death Benefit

Your annuity carries a death benefit payable to your beneficiary. Typically the benefit will equal the annuitization value under a settlement option or the cash value under a lump sum surrender.

Texas Capital Bank Wealth Management Services, Inc. represents insurers offering retirement needs of our clients. We will be pleased to answer any questions you may have about annuities or retirement planning. Please contact Steve Hull at 800-846-0750 or 214-932-6696 or email steve.hull@texascapitalbank.com for more information.

Disclosure

*Guaranteed principal. Your principal is guaranteed by the issuing insurance company.
Guaranteed minimum rate. The issuing insurance company will guarantee that you will never earn less than 3.00% annually. Effective September 3, 2002. Rates subject to change daily.