How will you fund 20 or 30 years of retirement?

Thanks to better medical care and healthier lifestyles, people are living longer. The fact is, you could spend nearly as much time in retirement as you did working. How can you prepare for a long retirement with an income you can't outlive? An annuity might be the answer.

What is an annuity?

Simply put, an annuity is a contract between you and your insurance company. You invest a lump sum or make premium payments over several years, and in return you'll receive a steady stream of retirement income that can last your lifetime — guaranteed.*

Are there different types of annuities?

There are two basic types:

A fixed annuity offers you a guaranteed rate of return on your money. The amount of each annuity payment won't fluctuate, giving you a stable income you can count on.

A variable annuity might be a good fit if you're looking for more growth potential. You choose how you want your money invested from among several professionally managed options. The growth of your account and the amount of your future payments will depend on the performance of your investments.

Both fixed and variable annuities offer tax deferral. You won't owe taxes on annuity earnings until you receive your payments. And if you die before payments begin, your beneficiaries will receive a death benefit.

Why would I choose an annuity for my retirement savings?

An annuity can give you a retirement income for life. That's peace of mind you can't get with most other investment alternatives.

How do I know if an annuity is right for me?

Talk to your Allstate Personal Financial Representative. Together, you can review your current investment portfolio and retirement goals to determine if an annuity makes sense for your situation.

* Payments and guarantees are subject to the claims-paying ability of the issuing insurance company and the underlying investment options are subject to market risk and may lose value. An annuity may impose charges, including but not limited to surrender charges, mortality and expense risk charges, administrative fees, underlying fund expenses and feature charges that can reduce the value of your account and the return on your investment. You will have to pay federal income tax on any earnings you withdraw from the annuity during retirement or before. Withdrawals before age 59½ may be subject to the 10% early withdrawal penalty.

This is an advertisement prepared by LTM Publishing, Inc. for the use of the sender. The advertisement provided is not intended as legal or tax advice and may not be relied on for purposes of avoiding federal tax penalties. All individuals, including those involved in the estate planning process, are advised to meet with their tax and legal professionals. The individual sponsoring this newsletter will work with your tax and legal advisors to help select appropriate product solutions. We do not endorse or guarantee the content or services of any website mentioned in this newsletter. We encourage you to review the privacy policy of each website you visit. Limitations, restrictions and other rules and regulations apply to many of the financial and insurance products and concepts presented in this newsletter, and they may differ according to individual situations. The publisher does not assume liability for financial decisions based on the newsletter's contents. Great care has been taken to ensure the accuracy of the newsletter copy at press time; however, markets and tax information can change suddenly. Whole or partial reproduction of Financial Matters® without the written permission of the publisher is forbidden. ©LTM Publishing, Inc., 2011.

Variable annuities are long-term investments designed for retirement purposes. You should carefully consider the investment objectives, risks, charges and expenses of the investment options before purchasing a contract or investing money. These contracts have limitations and are sold by prospectus only. The prospectus contains important information about the annuity contract, including fees and charges, investment options, death benefits, and annuity payout options. Optional income riders carry additional costs and may have limitations or restrictions. To obtain a prospectus or the underlying portfolio prospectuses, please contact your Allstate Personal Financial Representative. Please read the product prospectuses carefully before purchasing a contract or sending money. Guarantees offered are subject to the claims-paying ability of the issuing company.

Securities offered by Personal Financial Representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member FINRA and SIPC, Main Office: 2920 South 84th Street, Lincoln, NE 68506, 877-525-5727. Life insurance issued by Allstate Life Insurance Company, Home Office, Northbrook, IL. In New York, Allstate Life Insurance Company of New York, Hauppauge, NY.

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