Feel safe and secure. If you have worked hard to accumulate a "nest-egg" for your retirement, now’s not the time to put your money in a risky investment. Fixed annuities are considered to be safe because they’re backed by the financial strength of the issuing insurance company. VALIC is required by law to set aside a portion of its assets or reserves to cover claims.
Postpone taxes on interest earnings. Tax deferral means postponing your taxes on interest earnings until a future point in time. In the meantime, you earn interest on the money you're not paying in taxes. This means you can accumulate more money over a shorter period of time, which ultimately can provide you with a greater income. Taxes are due upon withdrawal and prior to age 59½ a 10% tax penalty may apply.
Free withdrawals. After thirty days from the contract date you can make penalty-free withdrawals of your accumulated interest earnings. After the first contract year, you can withdraw accumulated interest or up to 10% of the annuity value without charges. Until withdrawals are taken your premiums will continue to grow tax deferred until retirement.
A guarantee you can count on. You'll not only receive a minimum guaranteed interest rate for the life of your contract, but also a guaranteed current rate payable on your initial purchase premium for one year, which may include an interest rate enhancement (initial purchase premiums of $100,000 or more may receive an additional interest rate enhancement).