Annuity Investments

An annuity is an insurance policy sold by an insurance company designed to provide an income, usually after retirement, that cannot be outlived.

An annuity contract has two phases: an accumulation phase and a payout phase. During the accumulation phase, the contract owner makes a payment or payments into the contract in exchange for either a fixed or variable return that is not subject to income taxes until withdrawal, permitting the tax deferred growth of your investment. During the payout phase, the accumulated value of the annuity contract can be converted into an income stream that can last for a set period of time or for as long as one lives.

An annuity contract can also be purchased that immediately pays an income stream. This type of contract is called an immediate annuity.

Learn about the different types of annuity investments:

Read important information regarding annuity investments:

Is an annuity investment right for you?

Your local financial advisor can review the features and risks of fixed and variable annuities with you and help you determine if an annuity may be suitable for you.

For additional information about variable annuities, you may want to review the Securities and Exchange Commission website at

Fees and Compensation Associated with Annuity Investments

Edward Jones receives various payments in connection with the purchase, sale and holding of annuities by its clients. Those payments include commissions, annual service fees and expense reimbursements. The firm also receives revenue sharing from some of its preferred annuities. For more information about revenue sharing, see Revenue Sharing Disclosure and Inforce Contract Service Disclosure. Edward Jones financial advisors and equity owners benefit financially from the firm’s receipt of these fees and payments.

The prospectus and statement of additional information contain information about fees and expenses. Your Edward Jones financial advisor can provide a prospectus, which you should read carefully before investing.

Guarantees are backed by the claims paying ability of the insurance company.

Edward Jones operates as an insurance producer in California, New Mexico and Massachusetts through the following subsidiaries, respectively: Edward Jones Insurance Agency of California, L.L.C., Edward Jones Insurance Agency of New Mexico, L.L.C. and Edward Jones Insurance Agency of Massachusetts, L.L.C.

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