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Annuities

Although annuities are a popular method to invest for retirement, many people still don’t know much about them.¹ An annuity is essentially a contract issued by an insurance company which allows you to accumulate money on a tax-deferred basis for long-term goals such as retirement. When you are ready to receive income from your annuity, you can withdraw funds as needed, or set up a regular payment schedule guaranteed by the issuer, which lasts for a given time period.²

There are two types of annuities:

A fixed annuity has a guaranteed fixed interest rate for a stated period of time, and depending on the terms of the contract, the insurance company may adjust the rate annually. There are two types of fixed annuities. The first type is one in which the insurance company guarantees the interest rate for a specified period of time, typically 1 to 10 years. The second type guarantees a bonus rate for one year, then resets the rates on an annual basis according to current interest rates.
A variable annuity is basically a basket of investment options—generally referred to as sub-accounts—issued by an insurance company. Any earnings within a variable annuity are permitted to accumulate tax-deferred. That means you pay no taxes on earnings until you begin taking withdrawals, usually during retirement. There are no annual contribution limits for a variable annuity. The sub-accounts vary according to the securities they invest in and their risk level. Return on an investment in a variable annuity depends on the performance of the sub-accounts you choose.

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 Financial Advisor. Read it carefully before you invest. Variable annuities are long-term investments suitable for retirement funding and are subject to market fluctuations and investment risk.

A Wachovia Securities Financial Advisor can help you determine how annuities may fit into your overall financial plan.

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¹ Annuity products are offered through Wachovia Insurance Agency, Inc., a non-bank affiliate of Wachovia Corporation and are underwritten by unaffiliated insurance companies. Variable annuities are also offered through Wachovia Securities. Not available in all states.

² Withdrawals from an annuity before age 59 1/2 may incur a 10% tax penalty. Withdrawals may be subject to surrender charges and have the effect of reducing death benefit and contract value. Guarantees are based on the claims-paying ability of the issuing insurance company.

Securities and Insurance Products: Not Insured by FDIC or any Federal Government Agency; May Lose Value; Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate Wachovia Securities is the trade name used by two separate, registered broker-dealers and non-bank affiliates of Wachovia Corporation providing certain retail securities brokerage services: Wachovia Securities, LLC, Member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member FINRA /SIPC.

Member FDIC. Only deposit products are FDIC insured.

Wachovia Securities Statement of Financial Condition
Audited - December 31, 2007
Unaudited - June 30, 2008

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