In the U.S, Planning for retirement is one of the most important long-term goals, and hence it is wise to plan for it carefully. Variable annuities offer many advantages to help people reach their retirement dreams with ease and confidence. To make the most out of it, it is good to invest in a reputable company with a nice history of variable annuities investment programs. One of such companies in the U.S is the renowned American legacy variable annuity. American legacy’s investment manager is one of the oldest and most respected in the United States and is investment adviser to the 29 mutual funds in American funds.

Like in all variable annuities, one of the most important advantages of an American legacy variable annuity is the ability to defer taxes on earnings. Since you do not pay taxes until you withdraw money, your money works all the more for you.

On the other hand, the American legacy variable annuity has a death benefit. The death benefit differentiates variable annuities from other retirement investment vehicles. It guarantees your beneficiaries of receiving the amount you invested or the present contract value, whichever is greater. Some include an option that pays your beneficiaries the highest value reached on a contract anniversary, adjusted for investments and withdrawals. Spouses also may have the option of assuming ownership, allowing them the chance for continued tax-deferred growth.

The American legacy variable annuities have what is called i4life advantage. This innovation is an optional benefit that provides a lifetime income guarantee. It is available for an additional 0.35% annual charge above the normal contract expenses. An American legacy variable annuity with the optional i4life advantage combines the benefits of annuities and systematic withdrawals so that you can have lifetime income and control of your assets.

American legacy variable annuities also have what is called the Lincoln smartsecurity advantage. This feature guarantees that your principal investment will be returned to you through annual withdrawals irrespective of how the market performs.

While investing in American legacy variable annuity, you have the advantage of staying ahead of inflation. This is because over its lifetime, every American legacy III variable sub contract with a track record of at least three years has outpaced inflation, as measured by the consumer price index.

American legacy III provides 15 variable funds so that you can build a collection that matches your goals and tolerance for risk. Overtime, changing market conditions can affect your original asset mix. With the automatic portfolio rebalancing, it restores your account to its original asset allocation percentages. It also has a regular investment program called dollar cost averaging, which lets you buy more units when prices are low and fewer units when they are high. It has the propensity to help smooth the brunt of market instability and may lead to a lesser average cost per unit.

American legacy variable annuity has been constant and consistent when it comes to maintaining the standards. Their credibility over the years is a testimony to what they can do.