Our approach to annuities at J.P. Morgan
Investments are often unpredictable, and this uncertainty can affect how you plan for the future. At J.P. Morgan Private Bank, we can help you mitigate investment risk through annuities, which provide certain unique guarantees. Unlike other investment products, annuities can provide liquidity and access to preferential pricing. As they are designed to evolve with your goals and life events, annuities offer you greater flexibility to change your lineup for your future and realize the full potential of your wealth.
What are annuities?
Annuities are insurance contracts that can provide you retirement income while giving you flexibility in your investment portfolio. As you look to obtain a future, reliable guaranteed income stream throughout your life, annuities can also help support your charitable goals and philanthropic strategies and provide tax deferred growth. You can invest in an annuity by paying fixed or variable payments. Annuities can also be an integral part of estate planning as they may offer enhanced death benefits and allow you to lock in high values that will increase your estate benefit to your beneficiaries.
Tax sheltered
Annuity earnings accumulate on a tax-deferred basis so long as the funds stay in the annuity. Investment growth is not taxed until withdrawal.
Guarantees
Unlike other investment products, annuities provide certain guarantees no matter how the market performs. These benefits are unique to annuities and can protect and preserve your wealth.
Flexibility
Annuities give you the freedom of choice. As you progress through different life stages, your goals may evolve. You have the ability to move into a different annuity without triggering tax implications.
J,P. Morgan Chase and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting professionals before engaging in any transaction.
All annuity contract and rider guarantees, or annuity payout rates, are backed by the claims-paying ability of the issuing insurance company.
Annuities can be an important part of your financial plan. Annuities provide an opportunity for tax deferral growth and guaranteed income that can last your lifetime.
Benefits of choosing J.P. Morgan Private Bank for annuities
At J.P. Morgan, you have access to an annuity platform built to help you and your family achieve your wealth planning goals.
Access to the J.P. Morgan Private Bank network
We have access to top carriers, competitive pricing and diverse annuity products which is our distinct advantage which enables well-informed investment decisions.
Global reach
Our size and experience allows us to negotiate pricing and features that we can offer exclusively to Private Bank clients like you.
Innovation
Our investment and product teams collaborate with select carriers to build cutting-edge products for our annuities platform.
Holistic planning
Regardless of your net worth, risk tolerance or financial objectives, the flexibilities annuities provide can apply to several financial planning goals.
Flexibility and customization
We help you build a diversified portfolio for your annuity contract and receive ongoing advice based on our global insights and investment thinking.
What are the different types of annuities and how do they work?
For a majority of individuals, annuities serve as a tool to grow assets tax-deferred over the long term, providing guaranteed retirement income. But for those with significant wealth, an annuity has unique features that can help enhance a multi-faceted wealth plan. There are various annuity options depending on your situation and goals. We can help you select the product that works in harmony with your portfolio and helps you achieve the outcomes you desire.
A fixed rate annuity is an insurance contract between you and an insurance company that provides you with a fixed rate of return over a specified duration. Valuable benefits of a fixed rate annuity may include competitive rates, tax-deferred growth opportunities, principal protection and a guaranteed income stream through annuitization.
A buffered annuity is a type of annuity where your principal tracks the performance of an index based on the options available for the specific product you select. These products are particularly geared towards investors who want to participate in market growth, but who do not want to take on the full risk of market volatility. Buffered annuities can provide valuable benefits that include tax deferred growth opportunities, partial to full downside protection, guaranteed income and death benefits.
Variable annuities allow you to invest and save for retirement on a tax-deferred basis with the ability to allocate your money according to your investment goals and risk tolerance, across a variety of professionally managed investment options offering different levels of risk and growth potential. Variable annuities typically offer optional living and death benefit guarantees which can help generate guaranteed lifetime income, protection from market loss and preserve a death benefit for beneficiaries.
A fixed index annuity (FIA) is a type of annuity where your principal tracks the performance of an index based on the options available for the specific product you select. FIAs provide market exposure with complete downside protection so your investment remains shielded from market losses. However, in exchange for this 100% downside protection, any potential growth is capped at certain levels, which can vary depending on the FIA you are considering. For this reason, FIAs are best suited for more conservative risk profiles. Certain FIA products offer income riders which can provide guaranteed lifetime income.
The first in a series of exclusive strategies, Multi-Asset Choice is a new advisory variable annuity offering, in which we have partnered with Nationwide® as the insurance carrier and issuer. With professional guidance, long-term flexibility and potential for tax-deferred growth, MAC is an all-in-one approach built to align with your goals and risk tolerance, now and in the future. Your J.P. Morgan team member will assist you in selecting an asset allocation model, and will guide you through the investments you choose for each asset class in your model to help you tailor it to best fit your goals.
Private Placement Variable Annuity (PPVA) is a variable annuity contract between an investor and an insurance company. Within the PPVA, investors have the option to choose various alternative investment options which can provide diversification, lower portfolio volatility and differentiated returns.
