Offer Your Clients A Competitive, Tax-Efficient Investment Strategy
Prudential Premier® Advisor Variable Annuity
For clients of Registered Investment Advisors who are looking for the advantages of tax eﬃciencies, the benefits of investment choice, and a built-in death benefit.
Registered Investment Advisors (RIAs) Can Offer Their Clients:
Premier Advisor Key Product Features:
- What is a variable annuity?
A variable annuity is a contract with an insurance company. It's a long-term investment designed for retirement purposes. Your clients invest money in professionally managed investment portfolios, where it accumulates tax-deferred. Investment returns and the principal value of an investment will fluctuate so that an investor's units, when redeemed, may be worth more or less than the original investment. When your clients retire, their investment can be used to generate a stream of regular income payments that are guaranteed for as long as they live. In addition, variable annuities may provide a guaranteed death benefit for their beneficiaries. It is important to remember that annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force.
- Why does the company behind the annuity matter?
When the time comes for your clients to use the benefits that are offered by a variable annuity it is important to remember that all guarantees including the optional benefits are backed by the claims-paying ability of the issuing insurance company and do not apply to the underlying investment options.
- Can Prudential help me determine if an annuity is right for my clients?
It's up to you to determine if a variable annuity is suitable for your clients. Prudential Annuities does not provide investment advice. The selections you choose together with your clients are all dependent on their investment goals and their risk tolerance.
- What happens if my clients need access to their money?
There are limitations and restrictions when making withdrawals. Withdrawals or surrenders may be subject to contingent deferred sales charges. Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59½, may be subject to an additional 10% federal income tax penalty, sometimes referred to as an additional income tax. Withdrawals reduce the account value and the living and death benefits proportionately.
- What are some of the other considerations that my clients need to think about when investing in various asset allocation portfolios offered by a variable annuity?
When purchasing an annuity, it is important to remember that asset allocation does not ensure a profit or protect against a loss. Investment returns and the principal value of an investment will fluctuate so that an investor's units, when redeemed, may be worth more or less than the original investment. The value or price of a particular stock or other equity or equity-related security owned by a portfolio could go down and your clients could lose money. Additionally, fixed income investments are subject to risk, including credit and interest rate risk. Because of these risks, a subaccount's share value may fluctuate. If interest rates rise, bond prices usually decline. If interest rates decline, bond prices usually increase.
Certain asset allocation portfolios may use leverage, short sales, and derivatives or engage in other speculative practices within their alternative investments. These practices include a high degree of risk and may increase the risk, size, and velocity of investment losses. Although certain alternative strategies seek to reduce risk by attempting to reduce correlation with equity and bond markets, no guarantee can be given that such efforts will be successful. The fees and expenses associated with alternative investments are generally higher than those for traditional investments. Lastly, diversification does not assure against loss in a declining market.
Investors should consider the features of the contract and the underlying portfolios’ investment objectives, policies, management, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectus, which can be obtained on the prospectus page or by contacting the National Sales Desk. Your clients should read the prospectus carefully before investing.
Issued on contracts: P-CR/IND(2/10),P-CR/IND(2/10)NY et al. or state variation thereof.
For Compliance Use Only: 1003622-00002-00