Dollar-cost averaging

Ease into the market with dollar-cost averaging

The Portfolio Director^® Freedom IRA (individual retirement account) and NQDA (non-qualified deferred annuity) options give you the ability to use dollar-cost averaging.

How it works

Dollar-cost averaging is when you invest a certain amount of money in an investment option, regularly and over time regardless of cost. By doing this, you can potentially reduce the impact of market volatility. It, ideally, spreads your investment out over time to keep your entire sum of money out of the market at the same time, avoiding rocky conditions as well as market upturns. While dollar-cost averaging does not ensure a profit or protect against market loss, it involves consistent investment regardless of price levels, which can lead to lower average price per share.

Investors should weigh their ability to sustain investments during period of market downturns. Any fixed rates credited will be paid on a declining basis.

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Important points to note

Remember that annuities are long-term products designed for retirement. Bear in mind that the value of variable options you choose will fluctuate so that your investment units, when redeemed, may be worth more or less than the original cost. Annuity contracts typically include limitations, exclusions and expense charges, which are described in the Portfolio Director Freedom prospectus.

Retirement plans and accounts that satisfy relevant qualification rules, such as 403(b)s, IRAs, 401(k)s, etc., can be tax deferred regardless of whether or not they are funded with an annuity. If you are considering funding a tax-qualified retirement plan or account with an annuity, you should know that an annuity does not provide any additional tax-deferred treatment of earnings beyond the tax deferral of the tax-qualified retirement plan or account itself. However, annuities do provide other features and benefits.

Fees apply and are described in the current prospectus. These fees include Separate Account fees, which are 1.00% depending on the variable option chosen, and Annual Net Fund Expenses, which range from 0.29% to 0.96% for the variable options for the NQDA product. The Separate Account fees, which range from 1.00 to 1.25% depending on the variable option chosen, and Annual Net Fund Expenses, which range from 0.12% to 1.15% for the variable options for the IRA product.

The current Annual Net Fund Expense is the current Annual Total Fund Expense less expense waivers or reimbursements. Fees are subject to change based on expense waivers and reimbursements. Additionally, an account maintenance fee of $3.75 per quarter applies if you are invested in variable options, and early withdrawal (surrender) charges may apply to your account.

Investors should carefully consider the investment objectives, risks, fees, charges and expenses before investing. This and other important information is contained in the Separate Account and underlying fund prospectuses, which can be obtained from your financial professional, at www.corebridgefinancial.com/retirementservices or calling 1.800.448.2542 and following the prompts. Read the prospectuses and if available, the summary prospectuses carefully before investing. Policy Form series UITN-194, UIT-IRA-I94, UIT-IRA-117-OR, UITN-117-OR, UIT-IRA-12-NY, UITN-12-NY. PD., UITN (4/20), UIT-IRA(4/20).

Investing involves risk, including the possible loss of principal.

Withdrawals of taxable amounts are subject to ordinary income tax. A 10% federal early withdrawal tax penalty could apply to withdrawals prior to age 59½.

Annuities are issued by The Variable Annuity Life Insurance Company (VALIC), Houston, TX. Guarantees are backed by the claims-paying ability of VALIC and are not the responsibility of Corebridge Financial. VALIC is a wholly owned subsidiary of Corebridge Financial, Inc.