Risk Considerations

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Risk Considerations

Market-Linked CDs
Please see Term Sheet and Disclosure for complete details prior to any purchase. Market-Linked CDs involve a number of risks and may not be suitable for all clients. If you redeem a Market-Linked CD before maturity, you may lose principal. For more information, please contact your investment representative.

Important Considerations: The Market-Linked CD may not be a suitable investment for all investors. In particular, no investor should purchase a Market-Linked CD unless they understand and are able to bear the associated market, liquidity and yield risks. Principal is not guaranteed if the CDs are not held to maturity and there is a risk of losing principal invested if the CD is redeemed prior to maturity. For tax purposes, Market-Linked CD returns are considered interest income and taxed at the holder’s ordinary income rate. There is no assurance of gain. Returns on the CDs may not necessarily reflect the full performance of the Reference Securities or index and may be lower than a direct investment in the Referenced Securities or index. You own the CD, not the underlying stocks or index and you will not have any dividend or shareholder rights in any of the companies included in the equity basket or index, some MLCDs may be callable by the issuer. Market-Linked CDs are generally illiquid and may have longer maturity periods than certain other more traditional CDs. Market-Linked CDs subject investors to specific risks associated with the market to which performance in linked. FDIC insurance provides only principal protection and does not cover returns lost due to market volatility. Market-Linked CD performance may not reflect the full performance of the referenced market due to possible performance caps. Generally, the price at which you buy a Market-Linked CD includes certain embedded costs. These costs can include distribution fees paid to selling agents, hedging and structuring fees incurred by the product issuer for assuming risks obligations under the CDs. See Term Sheet and Disclosure for complete details prior to any purchase.

Structured Notes
Market-Linked notes are securities whose returns are based on equity indexes, a single equity security, a basket of equity securities, interest rates, commodities, and/or foreign currencies. Market-Linked Notes are subject to investment risk and are not suitable for purchase by all people. No person should purchase the Notes unless he or she understands and is able to bear the associated market, liquidity and yield risks. You and your broker should take time to understand the manner in which your return on a Market-Linked note is calculated. Investment in Notes May Result in a Loss – Notes have different levels of principal protection. Check applicable term sheet for more details.   The price you pay for a structured note at issuance will likely be higher than the fair value of the structured note on the date of issuance. A Market-Linked Note is meant to be held to maturity, or you risk selling the note at a discount to its value at the time of sale.  Market-Linked Notes may have complicated payoff structures and can be structured in a variety of ways. You should carefully read the prospectus for your Market-Linked Note to fully understand how the payoff will be calculated.  Payoff can be based on a number of things including: Participation rates, capped maximum returns, and knock-in features. Market-Linked Notes are unsecured debt obligations of the issuer and are only as good as the financial health of the Market-Linked Note issuer. While the original term of the Notes are indicated on the Term sheet, some Notes may be called early. As a holder of the Notes, you will not have voting rights or rights to receive cash dividends or other distributions or other rights that holders of securities underlying the Index would have. The Notes will not be listed on any securities exchange. Unlike conventional debt securities, the securities do not provide for regular fixed interest payments. The amount of Contingent Coupon payments you receive over the term of the securities, if any, will depend on the performance of the Underlying during the term of the securities. Tax consequences vary from offering to offering.  Check applicable Term sheet for details

Guarantees are backed by the financial strength and claims paying ability of the carrier. Like all financial products, annuities carry certain risks including investment risk, interest rate risk, inflation risk, as well as associated with the respective contract. Any guarantees made by the insurance company are backed solely by the financial company and not by any governmental or regulatory agency. Investors should read and consider these documents carefully before investing. Prior to investing, always consult your financial advisor to understand the investment structure in detail. Investment returns and principal value will fluctuate so that the value when redeemed may be worth more or less than the original value. Depending on the type of annuity (i.e. fixed, indexed, variable), you will experience varying degrees of investment risk.

Taxable distributions (including certain deemed distributions) are subject to ordinary income taxes, and if made prior to age 59 1/2 may also be subject to a 10% federal income tax penalty. Distributions received from a non-qualified contract are taxable to the extent of the income on the contract and to the extent of untaxed investment income on the funds used to purchase the contract. Payments from IRAs are taxable in accordance with the normal rules surrounding taxation of payments from an IRA. Early surrender charges may also apply. Withdrawals may reduce the death benefit and any optional guaranteed amounts in an amount more than the actual withdrawal.

The information cannot be used or relied upon for the purpose of avoiding IRS penalties. This material is not intended to provide tax, accounting or legal advice. Investors should consult with qualified tax, estate, and financial professionals before investing. Products and features are subject to state variations and availability. Read the contract for complete details.

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