What are annuities?
Annuities are designed to help meet a number of long-range financial goals. They are contracts between an insured party (usually an individual) and an insurance company. In exchange for premiums paid, annuity contracts traditionally provide a guaranteed distribution of income over time, until the death of the person or persons named in the contract or until a final date, whichever comes first. Through a comprehensive financial review, you can learn more about the various types of annuities and work with a financial professional1 to determine which, if any, may be suitable for or in the best interest of your long-term financial goals.
Understanding the types of annuities
By diligently researching and partnering with top insurance carriers, we are able to offer our clients a range of carefully selected annuities. A financial professional can help you select:
- A fixed annuity, which can provide you with a guaranteed payout based on the claims paying ability of the issuing company, either for the annuitant's life or a defined length of time. Premiums can be paid in a lump sum or in installments.
- A variable annuity2, which will provide payouts based on the performance of the annuity's underlying investments, is similar in many respects to mutual funds. However, a typical variable annuity offers three basic features not commonly found in mutual funds:
- Tax-deferred treatment of earnings
- A death benefit
- Annuity payout options that provide guaranteed income for life.3
- An immediate annuity, which is a popular choice for people who are already in retirement. Since these kinds of annuities do not have an accumulation period, your payouts can begin as soon as the contract is established.
Variable annuities are sold by prospectus. Please consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus, which contains this and other information, can be obtained by calling your HSBC Securities (USA) Inc. financial professional or call 888-525-5757. Read it carefully before you invest.
Through a comprehensive financial review, you can learn more about the various types of annuities and work with a financial professional to determine which, if any, may be suitable for or in the best interest of your long-term financial goals. Please call 866.586.4722 or call collect 847.876.1574.
|ARE NOT A DEPOSIT OR OTHER OBLIGATION OF THE BANK OR ANY OF ITS AFFILIATES
||ARE NOT FDIC INSURED
||ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
||ARE NOT GUARANTEED BY THE BANK OR ANY OF ITS AFFILIATES
||MAY LOSE VALUE|
All decisions regarding the tax implications of your investment(s) should be made in consultation with your independent tax advisor.
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Environmental, Social and Governance (“ESG”) Customer Disclosure
At this time in the United States, there is no standard definition of, or measurement criteria for, environmental, social and governance (“ESG”) factors or impact. ESG-related measurement criteria is highly subjective and may vary significantly across and within different sectors. There is no guarantee that: (a) the nature of the ESG investment, or the ESG impact or measurement criteria of an investment, will be aligned with any particular investor’s ESG goals; (b) the stated or targeted ESG level will be achieved; or (c) an investment approach that considers ESG factors will produce returns similar to those that don’t, or that they won’t diverge from traditional market benchmarks.
HSBC Securities (USA) Inc. and HSBC Insurance Agency (USA) Inc. (collectively “HSBC”) may rely on metrics or measurement criteria devised and/or reported by third party providers or issuers. HSBC does not always conduct its own specific due diligence in relation to ESG metrics or measurement criteria.
ESG investing is an evolving area and new regulations may come into effect which may affect how an investment is categorized or labeled. An investment that is considered to fulfil ESG criteria today may not meet those criteria at some point in the future.
Please consider the investment’s specific ESG impact measurement criteria in the prospectus or other offering documents prior to investing.
United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing obligations with respect to their U.S. and non-U.S. accounts - including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts ("FBAR")). U.S. persons should consult a tax adviser for more information.
1 Financial professional refers to Financial Consultants (FCs), Investment Counselors (ICs), and High Net Worth Relationship Managers (HNWRMs). All offer bank products through HSBC Bank (USA) N.A, investments, annuities, and variable life insurance products through HSBC Securities (USA) Inc. and traditional insurance products through HSBC Insurance Agency (USA) Inc.
2 Investments in variable products will fluctuate and values upon redemption may be less than the original amount invested. Variable annuities are designed to be long-term investments and frequently involve substantial charges such as administrative fees, annual contract fees, mortality & risk expense charges and surrender charges. All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. When investing in tax-deferred annuities additional risks apply and may not be suitable for or in the best interest of all investors. Early withdrawals may impact annuity cash values and death benefits. Early surrender charges may also apply. An additional 10% IRS penalty may apply to withdrawals prior to age 59 ½. Features that provide lifetime income are optional and can be purchased at an additional cost. For more complete information, contact your Financial Professional to obtain a current prospectus. Please read the prospectus carefully before investing or sending money.
3 Guarantees are based on the claims-paying ability of the issuing company and do not apply to the investment performance or safety of the underlying funds. However, minimum guarantees provided by a variable annuity are generally supported by assets in the insurer's general account.