What types of investing products are available?

  • You may choose from several types of investment products for your 403(b) or 457(b) retirement savings. The different investment products listed below represent the majority of all account types currently available. The 401(k) plan is limited to mutual fund investment options only. The assistance of a professional representative could help you chart a course for successful investing. Note that each investment product has specific provisions and advantages associated with its use.

    Standard Interest Annuity

    This is the simplest form of retirement savings and is similar to a savings account.

    Equity Index Annuity

    Combines many of the characteristics of an interest annuity with the opportunity to participate in any positive returns realized in a stock market index.

    Variable Annuity

    Several investment alternatives are combined within these plans. The participant may select one or more investment accounts managed by the carrier or other various investment management companies.

    Mutual Funds

    Offered by investment management companies and brokerage firms. Participants may direct their contributions to various investment portfolios which are managed by the custodian or management company.

     

     

Overview of Investment Products

Product Type Risk Minimum Rate of Return Current Interest or Return on Deposits Fees Surrender Charges Loan Provisions
Standard Interest Annuity Stable Minimum guarantee on all principal Credits current rate of interest Usually no front-end sales charges or fees Common for early withdrawal Usually included
Equity Index Annuity Stable to Low Moderate Minimum rate on portion of principal over specified period of time Different methods of crediting interest exist based on varying market indices Usually no front-end charges or fees. Common for early withdrawals Usually Included
Variable Annuity Moderate to Aggressive Subject to performance of investment accounts Interest bearing with guarantee available as one of the investment choices May include mortality and expense fees and investment management fees Common for early withdrawals Usually Included
Mutual Funds Moderate to Aggressive Long-range returns subject to account performance Subject to performance of investment accounts selected May include sales charges and investment management fees Some share classes may have contingent deferred sales charges Sometimes Included

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