Polaris Select Investor

Transcription

Polaris
Select Investor
VARIABLE ANNUITY
POLARIS
FOR THOSE WHO WANT MORE®
SM
WHEN YOUR GOALS ARE
Accumulation
Tax-advantaged investing
Professionally managed investments
SM
VARIABLE ANNUITY
Variable annuities are long-term investments designed for retirement purposes. Variable annuities work in two phases.
In the accumulation phase, they can help you build assets on a tax-deferred basis. In the income phase, they can
provide you with guaranteed income through annuitization. Variable annuities are subject to costs that include a
separate account fee, a contract maintenance fee, expenses related to the operation of the variable portfolios and
the costs associated with any optional features.
Retirement plans and accounts, such as IRAs and 401(k)s, defer payment of taxes on earnings until withdrawn. If you
are considering funding a 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 treatment provided by the plan itself. In addition, while
other variable annuities may provide more robust insurance benefits, such as optional guaranteed living
benefits and optional enhanced death benefits, the Polaris Select Investor’s insurance benefits are limited to
the optional Return of Purchase Payment Death Benefit and standard annuitization options. You should fully
discuss the decision to fund a retirement plan or account with the Polaris Select Investor Variable Annuity with your
financial advisor.
Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Polaris
Variable Annuities are issued by American General Life Insurance Company (AGL) except in New York, where
they are issued by The United States Life Insurance Company in the City of New York (US Life).
2
In recent years, planning for the financial aspect of retirement has become
increasingly important. And, for many, the impact of taxes on assets being set
aside for retirement is growing in significance. Polaris Select Investor Variable
Annuity brings together the benefits of tax deferral with diverse investment
choices and leading money managers to help you reach your long-term goals.
Polaris Select Investor offers you More Control,
More Choice, and More Experience
More Control.
You’ll have more control over when you pay taxes on your earnings through tax-deferred
accumulation and tax-free transfers between investment options—giving you a potentially
more tax-efficient way to invest.
More Choice.
You can choose from over 90 investment options covering diverse asset classes, plus
professionally designed asset allocation models.
More Experience.
Money is invested by more than 30 professional, experienced money managers with long
track records of performance. Of course, past performance is no guarantee of future results.
Earnings are taxed upon withdrawal. Withdrawals of taxable amounts are subject to ordinary income tax, and
if taken prior to age 59½, an additional 10% federal tax may apply.
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Polaris Principles
for Retirement Investing
Leverage the power of tax deferral
Taxes can have a big impact on long-term investment returns. The highest marginal income
tax rate now stands at 39.6%—up from 35% in 2012. The dividends and capital gains tax rate
has increased to 20% for investors in the highest tax bracket. And there are new Medicare
taxes on net investment income and earned income, not to mention the phase-out of itemized
deductions, for high income individuals.
Position your assets to your advantage
While you may have committed to accumulating assets for use later during your retirement
years, you may not have considered the importance of positioning different types of assets in
different types of accounts (called asset location). Asset location can have a substantial effect
on the overall return of your investments. By placing your least tax-efficient investments in a
tax-deferred account (such as an IRA or annuity), you can potentially reduce your current
income tax liability and control when you have to pay for the taxes on gains, distributions,
and dividends.
Keep in mind, retirement plans and accounts already defer payment of taxes on earnings
until withdrawal and funding a retirement plan or account with an annuity does not provide
any additional tax-deferred treatment of earnings. You should fully discuss the decision to
fund a retirement plan or account with the Polaris Select Investor Variable Annuity with
your financial advisor.
More Tax Efficient
Asset classes
have different tax
consequences
Less Tax Efficient
2
Municipal Bonds
U.S. Large Growth Stocks
International Stocks
Emerging Markets Stocks
U.S. Large Value Stocks
U.S. Mid Cap Stocks
Balanced Funds
U.S. Small Cap Stocks
Taxable Bonds
Real Estate
Commodities
World Bond
Corporate Bond
High Yield Bonds
Source: Morningstar, 2015. Based on Morningstar 10-year average tax cost ratio for major Morningstar categories as of 2/28/15.
VARIABLE ANNUITY
Taxable vs. tax-deferred
In a rising tax environment, it may make sense to complement your existing investments,
especially those in taxable accounts, with tax-deferred investments. Annuities are intended
as long-term investments designed for retirement, so your investment can grow tax-deferred
and benefit from the compounding of investment earnings. With Polaris Select Investor, you
can also reallocate between different investment options without triggering immediate tax
consequences. Because investment gains within a variable annuity are not taxed until a
withdrawal is taken, you have more control over when you pay taxes on your earnings.
Tax deferral for greater potential growth
Hypothetical $100,000 investment—currently taxable vs. tax-deferred—over 25 years
$600,000
$542,743
$500,000
$400,000
$418,775
$341,875
$300,000
$200,000
$100,000
$100,000
Initial
Investment
Without
Tax Deferral
Tax-deferred
Investment
(after taxes)
Tax-deferred
Investment
(before taxes)
•This chart shows the hypothetical value of $100,000 earning a 7% gross return in a currently taxable investment and a comparable
hypothetical tax-deferred investment over 25 years with no withdrawals. The rate of return will fluctuate and is not guaranteed. Both
investments assume a 28% federal income tax rate. No state income tax is included. This chart is for illustrative purposes only. Upon
withdrawal, the value of the tax-deferred investment would be reduced by income taxes on the investment gains. This example does
not reflect the actual performance of the Polaris Select Investor Variable Annuity or any particular investment, nor the fees and charges
associated with any investment. If shown, these fees and charges would reduce the results of the tax-deferred investment. Tax rates and tax
treatment of earnings may impact comparative results. Capital gains and dividends in the taxable investment may be taxed at a rate that is
lower than the income tax rate, which could increase the taxable return and reduce the difference in performance between the investments.
•Withdrawals of taxable amounts are subject to ordinary federal income tax and if taken before age 59½, an additional 10% federal tax
may apply. Withdrawals are also subject to state tax.
•Talk to your financial advisor about your investment time horizon and income tax brackets, both current and anticipated, when making
an investment decision.
•There is no guarantee that an investment in Polaris Select Investor will keep pace with inflation.
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Retirement Investing
Consider the long-term
growth potential of stocks
Stocks historically have outperformed other types of investments over long periods of time, as
illustrated below. And while past performance is not a guarantee of future results, it’s important
to consider the long-term wealth-building opportunity an investment in stocks may provide.
Of course, an investment in stocks is subject to risk and market fluctuation.
Stocks can help provide long-term growth potential
Growth of $100,000 in various asset classes over the 30-year period ended 12/31/14
$3,000,000
3000000
$2,500,000
2500000
Stocks
$2,509,926
$2,000,000
2000000
$1,500,000
1500000
$1,000,000
1000000
Bonds
$861,592
500000
$500,000
0
4
T-Bills
$324,819
$0
1985
1990
1995
2000
2005
2010
2014
Source: Wilshire Compass, 2015. This chart is for illustrative purposes only and does not represent any particular investment. Performance for
any specific investment is available from your financial advisor. Past performance is not a guarantee of future results. Stocks are represented
by the S&P 500 ® Index, a representative sample of leading companies in key industries that reflect the U.S. stock market. Stocks are often
subject to significant price fluctuations and, therefore, you may have a gain or loss in principal when shares are sold. Bonds are represented
by the Barclays U.S. Aggregate Bond Index, which covers the U.S. investment grade fixed-rate bond market with index components for
government and corporate, mortgage pass-through and asset-backed securities. T-bills are represented by the BofA Merrill Lynch 91-Day
Treasury Bill Index. Government bonds and Treasury bills are subject to interest rate risk, but they are backed by the full faith and credit of
the U.S. Government if held to maturity. The repayment of principal and interest of a corporate bond is guaranteed by the issuing company,
and subject to default and credit risks. Stocks and bonds are not subject to the separate account fees, administration charges and potential
withdrawal charges associated with an investment in a variable annuity. Underlying investment options in a variable annuity are subject to
portfolio operating expenses. Indexes are unmanaged; you cannot invest directly in any index. The appropriateness of particular types of
investments depends on your time horizon, risk tolerance and individual circumstances, such as your current and anticipated tax brackets.
VARIABLE ANNUITY
Diversification may help reduce risk
and lower volatility
While stocks have outperformed other investments and historically have provided an effective
hedge against inflation over the long term, diversification within your portfolio may help offset
short-term volatility. As the chart below shows, a mix of asset classes can provide opportunity
for growth with potentially less volatility.
A case for diversification
2005
2007
2008
2009
Int’l
13.56%
Int’l
26.35%
Large Cap
Growth
11.82%
Bonds
5.24%
High Yield
Bond
57.50%
Large Cap
Value
7.04%
Large Cap
Value
22.21%
Int’l
11.18%
Cash
1.80%
Diversified
Portfolio Small Cap
5.44%
18.35%
Bonds
6.96%
2011
2012
2013
2014
Small Cap
26.85%
Bonds
7.84%
Large Cap
Value
17.50%
Small Cap
38.82%
S&P 500
Index
13.69%
Large Cap
Growth
37.21%
Large Cap
Growth
16.72%
High Yield
Bond
4.38%
Int’l
17.31%
Large Cap
Growth
33.49%
Large Cap
Value
13.45%
Diversified
Portfolio
-26.10%
Int’l
31.78%
Large Cap
Value
15.51%
Large Cap
Growth
2.63%
Small Cap
16.34%
Large Cap
Value
32.54%
Large Cap
Growth
13.05%
S&P 500
Index
5.49%
High Yield
Bond
-26.39%
Small Cap
27.19%
High Yield
Bond
15.19%
S&P 500
Index
2.11%
S&P 500
Index
16.06%
S&P 500
Index
32.39%
Diversified
Portfolio
6.09%
S&P 500
Index
4.89%
Diversified Diversified
Portfolio
Portfolio Small Cap
14.08%
5.09%
-33.80%
S&P 500
Index
26.47%
S&P 500
Index
15.06%
Large Cap
Value
0.39%
High Yield
Bond
15.58%
Int’l
22.78%
Bonds
5.97%
Small Cap
4.56%
High Yield
Bond
11.72%
Cash
4.74%
Cash
3.01%
Large Cap
Growth
9.08%
High Yield
Bond
2.21%
S&P 500
Index
-37.00%
Large Cap
Value
19.69%
Int’l
7.75%
Cash
0.08%
High Yield
Bond
2.73%
Cash
4.76%
Large Cap
Value
-0.17%
Large Cap
Growth
-38.43%
Bonds
5.93%
Bonds
6.54%
Small Cap
-4.17%
Bonds
4.22%
Cash
0.05%
Cash
0.05%
Bonds
2.43%
Bonds
4.33%
Small Cap
-1.55%
Int’l
-42.39%
Cash
0.16%
Cash
0.13%
Int’l
-12.14%
Cash
0.07%
Bonds
-2.02%
Int’l
-4.90%
Large Cap
Growth
5.27%
S&P 500
Index
15.81%
2010
Large Cap Diversified Diversified Diversified Large Cap Diversified
Value
Portfolio
Portfolio
Portfolio
Growth
Portfolio Small Cap
-36.85%
25.74%
12.97%
0.14%
15.26%
20.68%
4.89%
Diversified High Yield
Portfolio
Bond
12.79%
7.42%
HIGHEST
Annual Returns
2006
High Yield
Bond
2.50%
LOWEST
■ International Stocks: MSCI EAFE Index. ■ Large Cap Growth: Russell 1000 Growth Index. ■ Large Cap
Value: Russell 1000 Value Index. ■ S&P 500 Index. ■ Small Cap: Russell 2000 Index. ■ High Yield Bond:
BofA Merrill Lynch High Yield Master II Index. ■ Bonds: Barclays U.S. Aggregate Bond Index. ■ Cash: Citigroup
Global Markets 3-Month T-Bill Index. ■ Diversified Portfolio: equal annual investments in the eight different
market segments noted. Source: Wilshire Compass, 2015.
Diversification does not ensure a profit or protect against market loss. There is no assurance that a diversified portfolio will
outperform a non-diversified portfolio. Past performance is not a guarantee of future results.
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Design Your Investment
Tap the expertise of respected
money managers
Polaris Select Investor offers you the benefits of professional money management and
time-tested investment techniques to help you diversify your investment and potentially
maximize long-term growth potential. Polaris money managers have been selected for their
extensive experience managing retirement assets, as well as for their investment management
style, investment process and track record of attractive performance over time. Of course,
past performance is not a guarantee of future results.
1
2
Additional information
6
1American Funds SAST Portfolios and the VCP Managed Asset Allocation SAST Portfolio invest in the American Funds Insurance Series,
which has the same investment manager (Capital Research and Management Company) as American Funds.
2A Waddell & Reed investment management company.
VARIABLE ANNUITY
Diversify your investment across asset classes
In addition to a wide selection of experienced money managers, Polaris Select Investor has
over 90 investment options from which you can choose. Working with your financial advisor,
you can create a strategy that feels comfortable to you by diversifying your investment
across multiple asset classes to help meet your objectives for any number of goals—including
income, volatility control, and inflation protection.
Polaris Select Investor also offers you the opportunity to invest in alternative asset classes and
alternative strategies. Traditionally, alternatives have been widely available to institutional
investors and include portfolios that invest in real assets (such as real estate, natural resources
and infrastructure) and commodities. They provide an alternative to investing in traditional
fixed income (bond) and equity (stock) investments and may help create a stabilizing effect on
a portfolio as they may have low correlation with traditional investments. This low correlation
may provide added portfolio diversification and has the potential to enhance a portfolio’s
risk/return profile.
Choose from these asset classes
Equity
Fixed Income/Cash
Asset Allocation
Large Growth
Money Market
Traditional
Large Core
Short-Term Bond
Income Oriented
Large Value
Inflation Protected Securities
Risk Managed
Small and Mid-Cap Growth
Corporate/Govt. Bond
Tactical
Small and Mid-Cap Core
High-Yield Bond
Multi-Alternatives
Small and Mid-Cap Value
Foreign and Global Bond
Multi-Cap
Multi-Sector/Non-Traditional Bond
Specialty
Foreign and Global Stock
Emerging Markets
•While certain Polaris portfolios may be similar to other funds managed by the same investment adviser, this does not mean that a portfolio’s
investment results will be comparable to the investment results of other similar funds, including other funds with the same investment adviser.
The portfolios’ investment results will likely differ, and may be higher or lower than the investment results of other similar funds.
•Money managers, with the exception of SunAmerica Asset Management, LLC and VALIC, are not affiliated with AGL, US Life or American
International Group, Inc. (AIG).
•Please refer to the product and trust prospectuses for more information about the contract and the variable portfolios. Please see back
cover for additional information about investing in the variable portfolios.
•There is no guarantee that an investment in Polaris Select Investor will keep pace with inflation.
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Choose your investing approach
With Polaris Select Investor, you have the flexibility to choose one of these
investment approaches:
1 Build your own allocation
You and your financial advisor can select from a wide range of over 90 portfolios and
designate percentage allocations to help meet your diversification and investment goals.
We encourage you to meet with your financial advisor periodically to review your
investments to ensure they align with your goals.
2Choose an asset allocation model designed
by Ibbotson Associates, Inc.
Polaris Portfolio Allocator models are developed exclusively by Ibbotson Associates, Inc.—
a recognized leader in asset allocation for more than three decades.
Polaris Portfolio Allocator models are designed to help you take advantage of the
potential benefits of asset allocation. You can use a model and its allocation as a guide
when designing your investment allocation. Keep in mind, while diversification and asset
allocation are both proven investment strategies, they can’t guarantee greater or more
consistent returns and they can’t protect against loss.
Polaris Portfolio Allocator models
developed by Ibbotson Associates, Inc.
Model 1
50% Stocks
50% Fixed Income
Lower
8
Model 2
60% Stocks
40% Fixed Income
Model 3
70% Stocks
30% Fixed Income
Risk/Reward
Potential
Please see back cover for additional information on Ibbotson Associates, Inc.
Model 4
90% Stocks
10% Fixed Income
Higher
VARIABLE ANNUITY
3Choose a Select Strategy that includes alternative investments
Select Strategies offer you an easy way to add alternatives to your investment.
Designed by SunAmerica Asset Management, LLC (SAAMCo) specifically for
Polaris Select Investor Variable Annuity, the Select Strategies combine a pre-selected
allocation of six alternative investments with a Polaris Portfolio Allocator model.
Each Select Strategy allows you to invest 70% of your investment in one of four
Polaris Portfolio Allocator models and 30% in pre-selected alternative investments
to further diversify your risk and return potential.
When alternative asset classes are chosen within your variable annuity, the usual
complex tax filings are not required (for example, K-1s) and earnings will be taxed
as ordinary income upon withdrawal. These funds expect to invest in positions that
emphasize alternative investment strategies and/or non-traditional asset classes and,
as a result, are subject to special risks. Alternative investment strategies may be riskier
than traditional investment strategies and involve leverage or may use various
complex hedging techniques, like options and derivatives.
Additional information about Polaris Portfolio Allocator models and Select Strategies
•You may invest in only one model or Select Strategy at a time. If you attempt to invest in more than one model or Select Strategy at a time,
your investment may no longer be consistent with the intended investment objective.
•While certain Polaris portfolios may be included in a Polaris Portfolio Allocator model or Select Strategy, this does not mean that these
portfolios are superior to any other portfolio not included in a model or Select Strategy.
•Polaris Portfolio Allocator models and Select Strategies are not intended to provide investment advice. They should not be relied upon as
providing individualized investment recommendations. The models and Select Strategies are considered “static” because the portfolios and
the percentages of contract value allocated to each portfolio within a model or Select Strategy will not be changed by us. To maintain the
target asset allocation of a model or Select Strategy, you can elect to have your investment rebalanced quarterly, semi-annually, or annually.
Please note that due to market returns and other factors, over time the asset allocation models and Select Strategies may no longer align
with their original investment objective. You should consult your financial advisor from time to time to review whether the model allocation or
Select Strategy you have selected is still appropriate for you. We reserve the right to change or cancel these programs at any time.
Please see back cover for additional information.
For more details on the
individual investment options,
Polaris Portfolio Allocator
models, and Select Strategies,
please see the Polaris Select
Investor Investment Guide.
9
Protecting Your Family
Choose the protection that’s right for you
and your family
A choice of death benefits
The Standard Death Benefit is automatically included in your contract at no additional cost.
It provides the beneficiaries you name on your contract with the contract value at time of death.
The optional Return of Purchase Payment Death Benefit is available for an additional
fee. This feature provides your beneficiaries with the greater of the contract value or purchase
payments, reduced proportionately for withdrawals.
Additional protection with the optional
Return of Purchase Payment Death Benefit
Additional investment
Return of Purchase
Payment Death Benefit
provides the greater
of contract value or
purchase payments
(adjusted for withdrawals)
Initial investment
Contract
Value
Year
1
2
3
4
5
6
7
8
9
10
Hypothetical example is for illustrative purposes only to show how the optional Return of Purchase Payment Death Benefit may work.
You may only elect the optional Return of Purchase Payment death benefit at the time you purchase your contract and you cannot change
your election thereafter at any time. Hypothetical contract value assumes an initial purchase payment at contract issue and one additional
purchase payment. The example does not reflect the actual performance of any particular investment. For more information about Polaris
Select Investor Variable Annuity performance, please ask your financial advisor.
10
The return of Purchase Payment Death Benefit may not be available in all firms. In certain firms, it may be required with certain purchases.
Please check with your financial advisor.
VARIABLE ANNUITY
Protect assets for your loved ones
Flexibility for your spouse and continued protection for your family
If your spouse is the joint owner or sole beneficiary, the spousal continuation option allows
your spouse to continue the contract rather than take the death benefit distribution. This option
is available at no additional cost.
The death benefit paid upon the death of the continuing spouse varies depending on the
death benefit elected by the original owner of the contract, the age of the continuing spouse
at the time of spousal continuation and the date all paperwork is received in good order.
Please see the prospectus for details.
Consider assets that are protected from probate
Certain assets such as life insurance policies and annuities allow you to designate
beneficiaries to receive payment upon your death. Because these assets pass outside of
the probate process, your beneficiaries have access to the funds more quickly. In addition,
these assets are not included in public records along with other details of your estate
settlement. Annuities may also offer additional options in terms of controlling how your
beneficiaries receive payments. See the following page for information on Extended Legacy
and Guided Legacy details.
Additional information about death benefits, including definitions
•Contract value: The value of the contract at the time all required paperwork, including proof of death, is received.
•Purchase payments: The money you invest in your variable annuity, as well as any additional money you invest after your initial purchase.
No additional purchase payments are accepted on or after your 86th birthday.
•If you are a spouse age 76 or older continuing a contract under spousal continuation, the contract’s death benefit will be equal to contract value.
•If your variable annuity contract is annuitized, the death benefit no longer applies. However, if you die during the annuity payout phase,
your beneficiary may receive any remaining guaranteed income payments, depending upon which annuity payout option you select.
Please see the prospectus for more information about the available annuity payout options.
When selecting your
beneficiaries be sure to
consider Spousal Continuation,
Extended Legacy, and Guided
Legacy. Your financial advisor
can help you understand
these features.
11
Protecting Your Family
How can you leave a lasting legacy?
You may want to leave a legacy for your family. When it comes to your variable annuity,
you have options that make it possible to provide income for multiple generations and to
maintain control of the beneficiary’s inheritance through Legacy Planning options.
Stretch assets across generations with Extended Legacy
With Extended Legacy, you can create a tax-advantaged plan that not only helps reduce
the tax burden on your beneficiaries but may also stretch the life of your annuity assets for
your spouse, children, and grandchildren. Use Extended Legacy from AIG to help you stretch
your legacy to:
•Provide income for your children (beneficiaries) in the future, over a longer period of
time. And your grandchildren (your beneficiary’s beneficiary) can potentially stretch
distributions over any remaining life expectancy of the first beneficiary.
•Minimize the annual tax burden of the beneficiaries since each distribution is taxed at
the time of withdrawal, while the remaining variable annuity assets grow tax-deferred.
•Keep the potential for tax-deferred growth even as the beneficiaries withdraw
annual income.
Guided Legacy can help you maintain control
With Guided Legacy, you have the power to say how and when untapped variable annuity
assets will be passed on, whether or not you choose to use the Extended Legacy concept.
This control can be important for:
•Making sure your money is passed on in the way you desire
•Beneficiaries who may not know how to manage a sizeable lump-sum inheritance.
You can tailor different distribution plans for different beneficiaries, depending upon the
needs of each.
12
Extended Legacy Planning is not a variable annuity product in and of itself. Stretch strategies involve lengthy distribution periods and are
subject to additional risks and considerations. The Extended Legacy and Guided Legacy concepts should be presented in conjunction with
a complete variable annuity kit, including a prospectus, that explains the full features and benefits of the variable annuity that you may be
considering in order to put Extended Legacy Planning to work for you.
VARIABLE ANNUITY
Polaris.
For Those Who Want More
®
Today, planning for your retirement is a priority and you want to make sure
your investments are working hard to help you reach your goals.
For over two decades, Polaris Variable Annuities have been helping investors
address their long-term retirement needs. Your financial advisor can help you
design your Polaris Select Investor Variable Annuity so that it’s uniquely suited
to your retirement goals and objectives.
Important risks and additional information about investing in the variable portfolios
•Portfolios that invest in stocks and bonds are subject to risk, including stock market and interest rate fluctuations. Portfolios that invest in bonds are subject
to changes in their value when prevailing interest rates change. Portfolios that invest in non-U.S. stocks and bonds, including emerging market investments,
are subject to additional risks such as political and social instability, differing securities regulations and accounting standards, limited public information,
plus special risks that may include foreign taxation, currency risks, risks associated with possible differences in financial standards, and other monetary and
political risks associated with future political and economic developments.
•Investments that concentrate on one economic sector or geographic region are generally subject to greater volatility than more diverse investments.
Portfolios that invest in technology companies are subject to additional risks and may be affected by short product cycles, aggressive pricing, competition
from new market entrants and obsolescence of existing technology. Portfolio returns may be considerably more volatile than a portfolio that does not invest
in technology companies.
•Portfolios that invest in small and mid-size company stocks are generally riskier and more volatile than portfolios that invest in larger, more established companies.
•Portfolios that invest in high-yield bonds may be subject to greater price swings than portfolios that invest in higher-rated bonds. The payment of interest and
principal is not assured.
•Portfolios that invest in real estate investment trusts (REITs) involve risks such as refinancing, economic conditions in the real estate industry, changes in
property values, dependency on real estate management, and other risks associated with a concentration in one sector or geographic region.
•Investments in securities related to gold and other precious metals and minerals are speculative and impacted by a host of worldwide economic, financial
and political factors.
•Money market instruments generally offer stability and income, but an investment in these securities, like investments in other portfolios, is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government agency. An investment in the Cash Management portfolio is subject to
potential loss of principal; unlike certain money market instruments, the portfolio does not seek to maintain a net asset value of $1.
•You may withdraw money from your model or Select Strategy according to the provisions of your Polaris contract. Early withdrawals may be subject to
withdrawal charges and an additional 10% federal tax may apply to amounts withdrawn prior to age 59½. The amount you request will be proportionately
withdrawn from each of the allocations in your contract unless you direct us differently. If you make a withdrawal from specific portfolios in a model or
Select Strategy that changes the existing percentages, your investment may no longer be consistent with the intended objective.
•Asset allocation models and Select Strategies may not be appropriate if you are interested in directing your own investments.
•Often, alternative asset classes are not registered under the U.S. securities laws or similar laws in other countries, and therefore, are subject to less regulation
and have additional risks than securities that are registered in the U.S. Each fund’s prospectus has information on that fund’s investment strategies and risks.
Additional information about the Polaris Portfolio Allocator models
•The Polaris Portfolio Allocator models are designed and licensed by Ibbotson Associates, Inc. (“Ibbotson”). The models are provided for educational
purposes only and should not be considered investment advice.
•Ibbotson does not endorse and/or recommend specific financial products that may be used in conjunction with the models. Please consult your financial
advisor for assistance in developing a portfolio specific to your needs and objectives before investing.
© 2015 Ibbotson Associates, Inc.
Polaris Variable Annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges,
expenses and other information regarding the contract and underlying funds, which should be considered carefully before
investing. Please contact your insurance-licensed financial advisor or call 1-800-445-7862 to obtain a prospectus. Please
read the prospectus carefully before investing.
All contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability of the issuing
insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased
or any affiliates of those entities and none makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company.
This material was prepared to support the marketing of annuities issued by American General Life Insurance Company (AGL) and The United States Life
Insurance Company in the City of New York (US Life). Please keep in mind that AGL, US Life, and their distributors and representatives may not give tax,
accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. Such
discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are subject to legislative modification,
and while many such modifications will have only a prospective application, it is important to recognize that a change could have retroactive effect as well.
Please seek the advice of an independent tax advisor or attorney for more complete information concerning your particular circumstances and any tax
statements made in this material. The purchase of an annuity is not required for and is not a term of the provision of any banking service or activity.
Polaris Select Investor Variable Annuity, form number AG-803 (7/13), is issued by American General Life Insurance Company (AGL). In New York, Polaris
Select Investor Variable Annuity, form number US-802 (5/14), is issued by The United States Life Insurance Company in The City of New York (US Life).
Distributed by AIG Capital Services, Inc. (ACS), Member FINRA, 21650 Oxnard Street, Suite 750, Woodland Hills, CA 91367-4997, 1-800-445-7862.
AGL, US Life and ACS are members of American International Group, Inc. (AIG).
©2015 American International Group, Inc. Polaris is a registered trademark. All rights reserved.
Not FDIC or NCUA/NCUSIF Insured
May Lose Value • No Bank or Credit Union Guarantee
Not a Deposit • Not Insured by any Federal Government Agency
www.aig.com/annuities
R5450CON.2 (7/15)
Product Summary (B-Share)
Base contract
1.10% annualized fee deducted from the average daily
ending net asset value allocated to the variable portfolios.
$50 contract maintenance fee ($30 in NM). Currently waived
if contract value is $75,000 or more on contract anniversary.
Optional Return of Purchase Payment
Death Benefit
0.30% annualized fee deducted from the average daily
ending net asset value allocated to the variable portfolios.
Maximum issue ages1
85 with Account Value Death Benefit.
75 with optional Return of Purchase Payment Death Benefit.
Minimum initial investment2
$25,000 (Qualified & Non-Qualified);
Additional: $500 (Qualified & Non-Qualified);
$100 if Automatic Payment Plan is used.
Professional money management
Total annual portfolio operating expenses range from 0.35%
to 14.40%3 as of 5/31/2014 and 12/31/2014, respectively.
Dollar cost averaging4
Choose from two Dollar Cost Averaging (DCA) fixed accounts:
6 month or 1 year.
Transfers between variable portfolios
15 free per contract year; $25 thereafter (PA and TX, $10).
Automatic asset rebalancing
Quarterly, semi-annual or annual available.
Free withdrawals during the withdrawal
charge period
10% of purchase payments not yet withdrawn each contract
year and still subject to withdrawal charges.
Note: if you are taking your contract’s Required Minimum
Distribution (RMD), any withdrawal charges applicable to such
withdrawals are currently waived.
Withdrawal charges
5-year declining withdrawal charge (applies to each purchase
payment): 7-7-6-6-5-0%.
Systematic withdrawals
Minimum withdrawal amount is $100. Available on a monthly,
quarterly, semi-annual, or annual basis.
Nursing home waiver
Waives withdrawal charges for certain withdrawals
(not available in CA).
Annuitization
Latest annuity date: 95th birthday. Upon annuitization, the death
benefit will no longer apply. Please contact us prior to reaching
age 95 to discuss options.
If jointly owned, age is based on the older owner.
Additional purchase payments will not be accepted on or after the 86th birthday.
3
Maximum expense shown is subject to a contractual waiver of 13.34%, through 4/30/16, that reduces the fee to 1.06%.
4
Dollar cost averaging does not ensure a profit or protect against loss. You should consider your ability to sustain investments during periods
of market downturns. Any fixed rates paid will be paid on a declining balance.
1
2
Additional state variations may apply. Product and features may not be available in all states. Please see the prospectus
for details. Firm restrictions may apply; please check with your financial advisor.
This material must not be used without the Polaris Select Investor product brochure; it cannot be used alone.
Polaris Select Investor Variable Annuity is sold by prospectus only. The prospectus contains the investment
objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds,
which should be considered carefully before investing. Please contact your insurance-licensed financial advisor
or call 1-800-445-7862 to obtain a prospectus. Please read the prospectus carefully before investing.
Annuities are long-term investments designed for retirement. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may
reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to
ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply.
All contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability
of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from
which this annuity is purchased or any affiliates of those entities and none makes any representations or guarantees regarding the claims-paying
ability of the issuing insurance company.
This material was prepared to support the marketing of annuities issued by American General Life Insurance Company (AGL) and The United States
Life Insurance Company in the City of New York (US Life). Please keep in mind that AGL, US Life, and their distributors and representatives may not
give tax, accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax
penalties. Such discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are subject
to legislative modification, and while many such modifications will have only a prospective application, it is important to recognize that a change
could have retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete information concerning
your particular circumstances and any tax statements made in this material. The purchase of an annuity is not required for and is not a term of the
provision of any banking service or activity.
Polaris Select Investor Variable Annuity, form number AG-803 (7/13), is issued by American General Life Insurance Company (AGL). In New
York, Polaris Select Investor Variable Annuity, form number US-802 (5/14), is issued by The United States Life Insurance Company in The City
of New York (US Life). Distributed by AIG Capital Services, Inc. (ACS), Member FINRA, 21650 Oxnard Street, Suite 750, Woodland Hills,
CA 91367-4997, 1-800-445-7862. AGL, US Life and ACS are members of American International Group, Inc. (AIG).
R5450CNB.1 (5/15)
Polaris
Select Investor
®
VARIABLE ANNUITY
INVESTMENT GUIDE
Investment Guide
With Polaris Select Investor Variable Annuity, you can seek to meet your investment objectives
by choosing from a wide array of investment options using one of these different approaches:
1
Build your own allocation
With over 90 investment choices, you can select from a wide range of investments from more than
30 experienced money managers and more than 20 different asset classes.
2
Choose an asset allocation model
The Polaris Portfolio Allocator models are designed by Ibbotson Associates, Inc. to help you take
advantage of the potential benefits of asset allocation.
3
Choose a Select Strategy that includes alternative investments
Select Strategies offer you a simple way to add alternatives to your portfolio. The Select Strategies,
designed by SunAmerica Asset Management, LLC (SAAMCo), combine a pre-selected allocation of
six alternative portfolios with a corresponding Polaris Portfolio Allocator model.
Professional money management
Polaris Select Investor Variable Annuity offers you the benefits of professional money management to help you
diversify your investment and maximize long-term growth potential.
1
2
American Funds SAST Portfolios and the VCP Managed Asset Allocation SAST Portfolio invest in the American Funds Insurance Series, which has
the same investment manager (Capital Research and Management Company) as American Funds.
2
A Waddell & Reed investment management company.
1
1 Build your own allocation from these available portfolios in
Polaris Select Investor Variable Annuity
ASSET CLASS
POLARIS PORTFOLIO
MONEY MANAGER
American Funds Growth SAST
Blue Chip Growth
Capital Growth
Fundamental Growth
Large Growth
EQUITIES
Large Core
Large Value
3,4
Large Cap Growth
SA AB Growth
SA Columbia Focused Growth
SA Marsico Focused Growth
Stock
BlackRock iShares Equity Appreciation V.I. Fund
Equity Opportunities
Lord Abbett Fundamental Equity5
Lord Abbett Growth and Income5
SA MFS® Massachusetts Investors Trust
VALIC Company I Stock Index Fund
American Funds Growth-Income SAST3,4
“Dogs” of Wall Street
Growth-Income
Invesco V.I. Comstock Fund6
Invesco V.I. Growth and Income Fund6
Large Cap Value
Small and MidCap Growth
SA Columbia Focused Value
SA Legg Mason BW Large Cap Value
Aggressive Growth
Growth Opportunities
Mid-Cap Growth
Mid Cap Growth
Small and MidCap Core
Small and MidCap Value
Small Cap
VALIC Company I Mid Cap Index Fund
VALIC Company I Small Cap Index Fund
Mid Cap Value
Small & Mid Cap Value
Small Company Value
Capital Research and Management Company
Massachusetts Financial Services Company
The Boston Company Asset Management, LLC
Wells Capital Management Incorporated
Goldman Sachs Asset Management, L.P., Janus Capital
Management LLC and SunAmerica Asset Management, LLC
AllianceBernstein L.P.
Columbia Management Investment Advisers, LLC
Marsico Capital Management, LLC
T. Rowe Price Associates, Inc.
BlackRock Advisors, LLC
OppenheimerFunds, Inc.
Lord, Abbett & Co. LLC
SunAmerica Asset Management, LLC
J.P. Morgan Investment Management Inc.
Invesco Advisers, Inc.
T. Rowe Price Associates, Inc., Wellington Management
Company LLP and SunAmerica Asset Management, LLC
Brandywine Global Investment Management, LLC
Wells Capital Management Incorporated
T. Rowe Price Associates, Inc., Wellington Management
Company LLP and SunAmerica Asset Management, LLC
ClearBridge Investments, LLC, J.P. Morgan Investment
Management Inc. and SunAmerica Asset Management, LLC
Goldman Sachs Asset Management, L.P., Massachusetts
Financial Services Company and SunAmerica Asset
Management, LLC
Franklin Advisory Services, LLC
Please see page 8 for important risks and additional information about asset classes. 1
Investment Guide
ASSET CLASS
Multi-Cap
EQUITIES
Specialty
Foreign and
Global Stock
POLARIS PORTFOLIO
MONEY MANAGER
Capital Appreciation
Growth
Invesco V.I. American Franchise Fund6
Natural Resources
Real Estate
Technology
Telecom Utility
Morgan Stanley UIF Global Infrastructure Portfolio
VALIC Company I Global Social Awareness Fund
VALIC Company I Nasdaq-100 Index Fund
American Funds Global Growth SAST3,4
Foreign Value
Global Equities
International Diversified Equities
Wellington Management Company LLP
Pyramis Global Advisors, LLC
Morgan Stanley Investment Management Inc.
Templeton Investment Counsel, LLC
Morgan Stanley Investment Management Inc.
Janus Capital Management LLC, T. Rowe Price Associates,
Inc. and SunAmerica Asset Management, LLC
Putnam Investment Management, LLC
International Equity
International Growth and Income
VALIC Company I International Equities
Index Fund
Emerging
Markets
Money Market
Short-Term Bond
Emerging Markets
Cash Management
Columbia Variable Portfolio—Limited Duration
Credit Fund
Lord Abbett Short Duration Income5
BofA Advisors, LLC
FIXED INCOME/CASH
Inflation Protected Real Return
Securities
Corporate Bond
Corporate/
Govt. Bond
Foreign and
Global Bond
Multi-Sector/
Non Traditional
Bond
2
Diversified Fixed Income
Government and Quality Bond
SA JPMorgan MFS® Core Bond
High-Yield Bond
High-Yield Bond
Columbia Variable Portfolio—Emerging Markets
Bond Fund
Global Bond
PIMCO Emerging Markets Bond Portfolio
BlackRock iShares Dynamic Fixed Income V.I.
Fund
Franklin Strategic Income VIP Fund
Goldman Sachs VIT Strategic Income Fund
Lord Abbett Bond Debenture5
PIMCO Unconstrained Bond Portfolio
Federated Investment Management Company
PineBridge Investments LLC and Wellington Management
Company LLP
JP Morgan Investment Management Inc. and
PineBridge Investments LLC
Goldman Sachs Asset Management International
Pacific Investment Management Company LLC
Franklin Advisers, Inc.
Goldman Sachs Asset Management, L.P.
ASSET CLASS
POLARIS PORTFOLIO
MONEY MANAGER
American Funds Asset Allocation SAST
Asset Allocation
Asset Allocation: Diversified Growth
Balanced
Franklin Founding Funds Allocation VIP Fund
Managed Allocation Balanced
Managed Allocation Growth
Managed Allocation Moderate
Managed Allocation Moderate Growth
SA BlackRock Multi-Asset Income Portfolio
SA MFS® Total Return
American Funds Capital Income Builder
Franklin Income VIP Fund
BlackRock Global Allocation V.I. Fund
Invesco V.I. Balanced-Risk Allocation Fund
3,4
Traditional
Asset Allocation
ASSET ALLOCATION
Income Oriented
Asset Allocation
SunAmerica Dynamic Allocation Portfolio®
Risk Managed
Asset Allocation
Tactical Asset
Allocation
MultiAlternatives
SunAmerica Dynamic Strategy Portfolio®
VCP Managed Asset Allocation SAST Portfolio®4,7
VCP Total Return Balanced® Portfolio
VCP Value® Portfolio
BlackRock iShares Dynamic Allocation V.I. Fund
Goldman Sachs VIT Global Trends Allocation
Fund
Ivy Funds VIP Asset Strategy
PIMCO All Asset Portfolio
BlackRock iShares Alternative Strategies
V.I. Fund
Goldman Sachs VIT Multi-Strategy
Alternatives Portfolio
Neuberger Berman AMT Absolute Return
Multi-Manager Portfolio
Edge Asset Management, Inc.
Putnam Investment Management, LLC
Franklin Templeton Services, LLC
BlackRock Investment Management, LLC
Franklin Advisers, Inc.
SunAmerica Asset Management, LLC and
SunAmerica Asset Management, LLC and
Waddell & Reed Investment Management Company
NB Alternative Investment Management LLC
Certain portfolios are not available in some firms. Please check with your financial advisor.
The American Funds SunAmerica Series Trust (“SAST”) portfolios (“Feeder Funds”) do not invest directly in individual securities; instead they invest all
of their assets in corresponding funds (“Master Funds”) of the American Funds Insurance Series. 4 Investing in a Feeder Fund will result in higher fees and
expenses than investing directly in a Master Fund. Please see the prospectus and Statement of Additional Information for more information regarding the
master-feeder fund structure. 5 Lord Abbett Series Fund, Inc. 6 AIM Variable Insurance Funds (Invesco Variable Insurance Funds)—Series II Shares. 7 The
VCP Managed Asset Allocation SAST Portfolio (“Feeder Fund”) does not invest directly in individual securities; instead it invests in shares of the American
Funds Insurance Series® Managed Risk Asset Allocation FundSM (the “Master Fund”). In turn, the Master Fund invests in shares of an underlying fund, the
American Funds Insurance Series® Asset Allocation Fund (the “Underlying Fund”), hedge instruments (primarily exchange-traded futures) and cash or
cash equivalents.
3
Please see page 8 for important risks and additional information about asset classes. 3
Investment Guide
2 Choose a Polaris Portfolio Allocator Model
Take advantage of the potential benefits of asset allocation with professionally designed
asset allocation models.
•Polaris Portfolio Allocator models are developed by Ibbotson Associates, Inc., a recognized leader
in asset allocation strategies. You can use a model and its allocation as a guide when designing your
investment allocation or you may build your own allocation with the help of your financial advisor.
•Keep in mind, while diversification and asset allocation are both proven investment strategies,
they can’t guarantee greater or more consistent returns and they can’t protect against loss.
Model 1
50% Stocks
50% Fixed Income
Lower
Model 2
60% Stocks
40% Fixed Income
Model 3
70% Stocks
30% Fixed Income
Risk/Reward
Potential
Model 4
90% Stocks
10% Fixed Income
Higher
P olaris Portfolio Allocator models are not intended to provide investment advice. They should not be relied upon as providing individualized
investment recommendations. The models are considered “static” because the portfolios and percentages of contract value allocated to each
portfolio within a model will not be changed by us. To maintain the target asset allocation of a model, you can elect to have your investment
rebalanced quarterly, semi-annually, or annually. Please note that due to market returns and other factors, over time the asset allocation models
may no longer align with their original investment objective. You should consult your financial advisor from time to time to review whether the model
allocation you have selected is still appropriate for you. We reserve the right to change or cancel this program at any time.
• You may invest in only one model at a time. If you attempt to invest in more than one model at a time, your investment may no longer be
consistent with the model’s investment objectives.
• You may withdraw money from your model according to the provisions of your Polaris contract. Early withdrawals may be subject to withdrawal
charges and an additional 10% federal tax may apply to amounts withdrawn prior to age 59½. The amount you request will be proportionately
withdrawn from each of the allocations in your contract unless you direct us differently. If you make a withdrawal from specific portfolios in a
model that changes the existing percentages, your investment may no longer be consistent with the model’s intended objectives.
• Asset allocation models may not be appropriate if you are interested in directing your own investments.
•W
hile certain Polaris portfolios may be included in a Polaris Portfolio Allocator model, this does not mean that these portfolios are superior to
any other portfolio not included in a model.
• Please see back cover for more information on Ibbotson Associates, Inc.
4
Model 1
Model 2
Model 3
Model 4
50% /50%
60% /40%
70% /30%
90% /10%
American Funds Growth SAST 3,4
2%
2%
2%
2%
Blue Chip Growth (Massachusetts Financial Services Company)
2%
2%
2%
4%
Capital Growth (The Boston Company Asset Management, LLC)
2%
3%
3%
4%
SA Marsico Focused Growth
1%
2%
3%
4%
Equity Opportunities (OppenheimerFunds, Inc.)
2%
3%
4%
6%
SA MFS® Massachusetts Investors Trust
7%
7%
7%
8%
American Funds Growth-Income SAST 3,4
—
—
1%
5%
SA Legg Mason BW Large Cap Value
4%
4%
4%
5%
“Dogs” of Wall Street (SunAmerica Asset Management, LLC)
3%
3%
3%
5%
Invesco V.I. Comstock Fund6
6%
6%
7%
8%
Invesco V.I. Growth and Income Fund6
6%
7%
8%
8%
Growth-Income (J.P. Morgan Investment Management Inc.)
5%
6%
7%
8%
Small & Mid Cap Value (AllianceBernstein L.P.)
2%
2%
2%
2%
Small Company Value (Franklin Advisory Services, LLC)
—
2%
2%
1%
Capital Appreciation (Wellington Management Company LLP)
2%
3%
4%
5%
Real Estate (Pyramis Global Advisors, LLC)
—
—
—
1%
American Funds Global Growth SAST3,4
2%
2%
3%
6%
Foreign Value (Templeton Investment Counsel, LLC)
2%
3%
3%
3%
International Diversified Equities (Morgan Stanley)
2%
2%
3%
3%
Emerging Markets (J.P. Morgan Investment Management Inc.)
—
1%
2%
2%
Real Return (Wellington Management Company LLP)
7%
4%
2%
—
Corporate Bond (Federated Investment Management Company)
10%
8%
7%
1%
Government and Quality Bond (Wellington Management Company LLP)
10%
9%
7%
2%
SA JPMorgan MFS® Core Bond
15%
12%
10%
5%
High-Yield Bond (PineBridge Investments LLC)
4%
3%
2%
—
Global Bond (Goldman Sachs Asset Management International)
4%
4%
2%
2%
Target Allocation: Stocks/Fixed Income
Actual allocation may differ from the target allocation.
Lower
• P lease see page 3 for additional information.
Risk/Reward
Potential
Higher
5
Investment Guide
3 Choose a Select Strategy
Designed especially for Polaris Select Investor Variable Annuity, a Select Strategy provides an easy way to add
alternatives to your portfolio. Each Select Strategy combines a Polaris Portfolio Allocator model with a pre-set
allocation of alternative investments to offer additional diversification opportunities.
When you choose this option, your contract is automatically allocated with 70% invested in one of the Polaris
Portfolio Allocator models of your choosing and 30% invested in the pre-selected combination of alternative
funds.
Select Strategy 1 ➝➝ Portfolio Allocator Model 1
SELECT STRATEGIES
6
ALLOCATION
Polaris Portfolio Allocator Model (one of four)
70%
V.I. Fund
6%
6%
Morgan Stanley UIF Global
Infrastructure Portfolio
5%
Neuberger Berman AMT Absolute Return
Multi-Manager Portfolio
6%
4%
Real Estate (Pyramis)
3%
Select Strategy Example
Alternatives
30%
70%
Polaris Portfolio
Allocator Model
• Select Strategies are not intended to provide investment advice.
• You may invest in only one Select Strategy at a time. If you attempt to invest in more than one Select Strategy at a time, your investment may
no longer be consistent with the intended investment objectives.
• You may withdraw money from your Select Strategy according to the provisions of your Polaris contract. Early withdrawals may be subject to
withdrawal charges and an additional 10% federal tax may apply to amounts withdrawn prior to age 59½. The amount you request will be
proportionately withdrawn from each of the allocations in your contract unless you direct us differently. If you make a withdrawal from specific
portfolios that changes the existing percentages, your investment may no longer be consistent with the intended objectives.
• A Select Strategy may not be appropriate if you are interested in directing your own investments or do not want exposure to alternative funds.
• While certain Polaris portfolios may be included in a Select Strategy, this does not mean that these portfolios are superior to any other portfolio
not included in a Select Strategy.
• Please see back cover for more information on Ibbotson Associates, Inc.
Alternative investments included in the Select Strategies
Your overall portfolio may be further diversified with these funds included in each Select Strategy. These alternative
investments were chosen to create a mix of strategies that offers potential diversification benefits beyond traditional
equity-fixed income allocations.
V.I. Fund
This fund of iShares ETFs offers exposure to alternative investments, which
may include emerging market debt, commodities, U.S. and international
REITs, global equities with minimum volatility, and preferred stocks.
A portfolio which invests across various alternative strategies, as
well as non-traditional asset classes such as global infrastructure, real
estate, and commodities, through differentiated investment styles
and strategies.
Morgan Stanley UIF Global
Infrastructure Portfolio
This fund invests in equity securities of global infrastructure companies
with exposure to all major economic infrastructure sectors, such as energy,
transportation, communication and others.
Neuberger Berman AMT Absolute
Return Multi-Manager Portfolio
Using a multi-strategy approach that provides investors with access to
high-quality alternatives managers, this portfolio may include strategies
commonly used by hedge funds such as merger arbitrage, equity and
credit long/short and restructurings.
With a flexible approach to capturing global opportunities and managing
risk through defensive capabilities and a wide duration range (-3 to +8
years), this fund’s goal is to deliver positive absolute returns independent
of the market environment.
Real Estate Portfolio (Pyramis)
Pyramis’ U.S. REIT team applies bottom-up, fundamental research and
seeks to identify real estate companies with attractive long-term capital
growth potential.
These funds expect to invest in positions that emphasize alternative investment strategies and/or non-traditional
asset classes and, as a result, are subject to special risks. Alternative investment strategies may be riskier than
traditional investment strategies and involve leverage or may use various complex hedging techniques, like options
and derivatives.
•Diversification does not ensure a profit or protect against market loss. There is no assurance that a diversified portfolio will outperform a
non-diversified portfolio. Past performance is not a guarantee of future results.
•The performance of these types of strategies may not be highly correlated with traditional investments in debt or equities and the correlation of
returns may not be stable over time. This means that when the value of traditional investments is decreasing, the value of alternative asset classes
may be increasing or decreasing or be relatively unchanged.
•Often, alternative asset classes are not registered under the U.S. securities laws or similar laws in other countries, and therefore, are subject
to less regulation and have additional risks than securities that are registered in the U.S. Each fund’s prospectus has information on that fund’s
investment strategies and risks.
7
Investment Guide
Important risks and additional information about
investing in the variable portfolios
•While certain Polaris portfolios may be similar to other funds managed by the same investment adviser, this does
not mean that a portfolio’s investment results will be comparable to the investment results of other similar funds,
including other funds with the same investment adviser. The portfolios’ investment results will likely differ, and may
be higher or lower than the investment results of other similar funds.
•Money managers, with the exception of SunAmerica Asset Management, LLC and VALIC, are not affiliated with
American General Life, US Life or American International Group, Inc. (AIG).
•Portfolios that invest in stocks and bonds are subject to risk, including stock market and interest rate fluctuations.
Portfolios that invest in bonds are subject to changes in their value when prevailing interest rates change. Portfolios
that invest in non-U.S. stocks and bonds, including emerging market investments, are subject to additional risks
such as political and social instability, differing securities regulations and accounting standards, limited public
information, plus special risks that may include foreign taxation, currency risks, risks associated with possible
differences in financial standards, and other monetary and political risks associated with future political and
economic developments.
•Investments that concentrate on one economic sector or geographic region are generally subject to greater
volatility than more diverse investments. Portfolios that invest in technology companies are subject to additional
risks and may be affected by short product cycles, aggressive pricing, competition from new market entrants and
obsolescence of existing technology. Portfolio returns may be considerably more volatile than a portfolio that does
not invest in technology companies.
•Portfolios that invest in small and mid-size company stocks are generally riskier and more volatile than portfolios
that invest in larger, more established companies.
•Portfolios that invest in high-yield bonds may be subject to greater price swings than portfolios that invest in higherrated bonds. The payment of interest and principal is not assured.
•Portfolios that invest in real estate investment trusts (REITs) involve risks such as refinancing, economic conditions
in the real estate industry, changes in property values, dependency on real estate management, and other risks
associated with a concentration in one sector or geographic region.
•Investments in securities related to gold and other precious metals and minerals are speculative and impacted by a
host of worldwide economic, financial and political factors.
•Money market instruments generally offer stability and income, but an investment in these securities, like
investments in other portfolios, is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. An investment in the Cash Management portfolio is subject to potential loss of principal;
unlike certain money market instruments, the portfolio does not seek to maintain a net asset value of $1.
8
Polaris
Select Investor
®
VARIABLE ANNUITY
Today, planning for your long-term goals such as retirement may be
a priority. You’ll want to make sure your investments are working hard
to help you reach your goals.
For over two decades, Polaris Variable Annuities have been helping
investors address their long-term investment needs. Your financial advisor
can help you design your Polaris Select Investor Variable Annuity so that
it’s uniquely suited to your retirement goals and objectives.
9
This material must not be used without the Polaris Select Investor Variable Annuity product brochure; it cannot
be used alone. Polaris Variable Annuities are sold by prospectus only. The prospectus contains the investment
objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which
should be considered carefully before investing. Please contact your insurance-licensed financial advisor or call
1-800-445-7862 to obtain a prospectus. Please read the prospectus carefully before investing.
Additional information about the Polaris Portfolio Allocator models and Managed Allocation Portfolios
•The Polaris Portfolio Allocator models are designed and licensed by Ibbotson Associates, Inc. (“Ibbotson”). The models are provided for
educational purposes only and should not be considered investment advice.
•Ibbotson does not endorse and/or recommend specific financial products that may be used in conjunction with the models. Please consult your
financial advisor for assistance in developing a portfolio specific to your needs and objectives before investing. Ibbotson Associates, Inc. is not
affiliated with the insurance companies listed below.
•The Managed Allocation Portfolios’ investment adviser, SunAmerica Asset Management, LLC (“SAAMCo”), has chosen Wilshire Funds
Management to serve as a consultant to the Managed Allocation Portfolios. Wilshire Funds Management is the global investment unit of Wilshire
Associates Incorporated. Wilshire is a registered service mark of Wilshire Associates Incorporated, Santa Monica, California. Wilshire is not an
affiliate of SunAmerica Asset Management, LLC or the insurance companies listed below.
The Pyramis Global Advisors’ logo is a registered service mark of FMR LLC. Used with permission.
This material was prepared to support the marketing of Polaris Variable Annuities. Please keep in mind that American General Life Insurance
Company, The United States Life Insurance Company in the City of New York, and their distributors and representatives may not give tax,
accounting or legal advice. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties.
Such discussions generally are based upon the company’s understanding of current tax rules and interpretations. Tax laws are subject to legislative
modification, and while many such modifications will have only a prospective application, it is important to recognize that a change could have
retroactive effect as well. Please seek the advice of an independent tax advisor or attorney for more complete information concerning your
particular circumstances and tax statements made in this material.
Annuities are long-term investments designed for retirement. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may
reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject
to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. An investment in Polaris involves investment risk,
including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. The purchase of
Polaris is not required for, and is not a term of, the provision of any banking service or activity. Products and features may vary by state and may not
be available in all states.
All contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability of
the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which
this annuity is purchased or any affiliates of those entities and none makes any representation or guarantees regarding the claims-paying ability of
the issuing insurance company.
Polaris Select Investor Variable Annuity, form number AG-803 (7/13), is issued by American General Life Insurance Company (AGL). In New
York, Polaris Select Investor Variable Annuity, form number US-802 (5/14), is issued by The United States Life Insurance Company in the City
of New York (US Life). Distributed by AIG Capital Services, Inc. (ACS), Member FINRA, 21650 Oxnard Street, Suite 750, Woodland Hills, CA
91367-4997, 1-800-445-7862. AGL, US Life and ACS are members of American International Group, Inc. (AIG).
© 2015 American International Group, Inc. Polaris® is a registered trademark. All rights reserved.
R5450PRF.4 (9/15)
Assess your time
horizon and
tolerance for risk
The Investor Questionnaire is educational in nature and
designed to help you evaluate investment considerations,
including your time horizon and tolerance for risk. To help you
identify a target investment allocation consistent with your time
horizon and tolerance for risk, complete this questionnaire.
The questionnaire was developed by Ibbotson Associates, Inc.
(“Ibbotson”), one of the most well-respected independent asset
allocation providers in the country. Your financial advisor can
help you choose an investment allocation that’s right for you
and your retirement needs.
INVESTOR QUESTIONNAIRE
How to use the questionnaire
1. Answer each question and total your scores where indicated.
2.Use the table on the back to identify the Polaris Portfolio Allocator
model that best matches your two total scores.
3.The models generally comprise a mix of stock and fixed income asset
classes. You can use a model and its allocation as a guide when
designing your investment allocation or you may build a customized
allocation with the help of your financial advisor.
Answer each question and total your scores for both sections
Investment Time Horizon Section — 2 Questions
1.In how many years will you begin to withdraw funds from this account?
• Less than 1 (0 points)
•3–4 (3 points)
•8–10 (9 points)
• 1–2 (1 point)
•5–7 (6 points)
•11 years or more (11 points)
_______________
POINTS
2.Once you start taking funds out of your account, over how many years will you continue to withdraw funds?
• Lump sum withdrawal (0 points)
•5–7 (4 points)
• 1–4 (2 points)
•8–10 (5 points)
•More than 11 (6 points)
_______________
POINTS
Investment Time Horizon Score
TOTAL
Risk Tolerance Section — 8 Questions
1. By keeping pace with inflation, investors can maintain the purchasing power of their money over time. This means
that your money will be able to purchase the same basket of goods year after year, even though prices have
increased. Generally, higher returns can only be achieved by accepting greater risk. Which of the following
choices best reflects your attitude toward inflation and risk?
•My main goal is to avoid loss, even though I may only keep pace with inflation. (0 points)
•My main goal is to earn slightly more than inflation, while taking on a low level of risk. (5 points)
•My main goal is to increase my portfolio’s value. Therefore, I am willing to accept short-term losses, but I am not
comfortable with extreme performance shifts that may be experienced in the most aggressive investment options. (9 points)
•My main goal is to maximize my portfolio value, and I am willing to take on extreme levels of risk and performance shifts
in my portfolio to do so. (14 points)
_______________
POINTS
2. The following chart shows the possible outcomes (best, average, and worst) of year-end account values
(net of fees) of four hypothetical investment portfolios. The initial investment into each portfolio was $20,000.
Which portfolio would you be most comfortable owning?
$30,000
$30,000
$27,500
$26,000
$27,000
$28,000
$25,000
$22,500
$20,000
$17,500
$15,000
$15,000
$13,500
$12,500
$12,500
$10,500
$10,000
Portfolio A
(0 points)
Portfolio B
(4 points)
Portfolio C
(7 points)
Dashed
line
represents
Average
Outcome
Portfolio D
(12 points)
_______________
POINTS
3. Markets have experienced large price swings and extended price drops throughout history. Suppose you owned
a portfolio that fell by 20% over a 3-month period. Assuming you still have 10 years until you begin making
withdrawals from this account, how would you react?
• I would immediately change my portfolio. (0 points)
• I would wait at least 6 months before adjusting my portfolio. (3 points)
• I would wait at least 1 year before adjusting my portfolio. (6 points)
• I would not change my investment strategy. (10 points)
_______________
POINTS
4. The following table presents the probable chance of experiencing a loss and probable dollar gain for
a $100,000 investment in four hypothetical portfolios over a one-year holding period. Based on the
information provided below, which of the following portfolios would you select for your account?
Portfolio A (0 pts)
Portfolio B (4 pts)
Portfolio C (7 pts)
Portfolio D (12 pts)
29%
31%
32%
34%
$5,000
$6,000
$7,000
$8,000
Chance of Experiencing a Loss (%)
Probable Dollar Gain ($)
_______________
POINTS
5. Investors must be comfortable with the amount of risk associated with short periods (i.e., one year), even if
they have a long investment horizon. The following three hypothetical graphs represent three different ways
in which your money can be invested. The graphs show the returns of each investment from year to year.
Which investment would you choose?
% Return
60%
Portfolio A (0 points)
60%
Portfolio B (7 points)
60%
40%
40%
40%
20%
20%
20%
0%
0%
0%
-20%
-20%
-20%
Portfolio C (14 points)
-40%
-40%
-40%
1 Year
_______________
1 Year
1 Year
POINTS
6. The table below shows the characteristics of four hypothetical portfolios over the next 30 years. Given your
investment objectives, in which of these hypothetical portfolios would you feel most comfortable investing?
Probable Average
Annual Return
Probable Number of Years with
Negative Returns
Potential Worst
Annual Return
Portfolio B (4 points)
5%
9
-16%
6%
10
-18%
Portfolio C (7 points)
7%
11
-22%
12
-28%
Portfolio A (0 points)
Portfolio D (12 points)
8%
_______________
POINTS
7. Investment decisions are generally determined by a risk-return tradeoff. Risk is any possibility of loss to the
value of your portfolio. Return is the amount earned or profit on an investment. How would you respond to
the following statement?
Protecting my portfolio from loss is more important to me than achieving high returns.
Strongly
Risk & Return are
Strongly
Primary
Agree
Disagree
Agree
equally important
Disagree
concern is
(4
points)
(11
points)
minimizing risk
(0 points)
(8 points)
(14 points)
Primary
concern is
maximizing return
_______________
POINTS
8. The degree to which the value of a portfolio rises and falls is called volatility. Generally, assets that exhibit
higher volatility also have higher returns. Investments are risky, however, because there is no guarantee that
the upturns in your portfolio will be greater than the downturns. Which of the following best describes how
you feel about the amount of volatility you are willing to accept?
•Little—I would rather have small returns than risk losing any money. (0 points)
•Some—I would like to achieve higher returns over time and can withstand an occasional, large downturn in the
value of my portfolio. (6 points)
•Considerable—My main goal is to achieve high returns over time and I can endure substantial losses in order
to do so. (12 points)
Turn the page and use your Investment Time Horizon and Risk Tolerance
scores to see which Polaris Portfolio Allocator model matches your profile.
_______________
POINTS
Risk Tolerance Score
TOTAL
Find the investment that matches your score
Enter your scores from the questionnaire on the lines below. Follow the column and row to where your two scores meet
to find the model that best matches your score. A model can serve as a guide when designing your investment allocation.
Your Total Time Horizon Score:
Your Total Risk
Tolerance Score:
Circle the appropriate
range on the right
Circle the appropriate range below
3 – 5
6 –7
8 –10
11+
15 – 37
1
1
1
1
38 – 60
1
2
2
2
61– 83
1
2
3
3
84 –100
1
2
3
4
Target Allocations: Stocks/Fixed Income
•Model
1: 50%/50%•Model 2: 60%/40%•Model 3: 70%/30%•Model 4: 90%/10%
If your time horizon score is less than 3 or your risk tolerance score is less than 15, a more conservative approach may be
appropriate. Your financial advisor can help you evaluate the model or other investments to help ensure that it meets your specific
financial situation. These situations are different for each client and should not be taken as a direct recommendation. Your needs
and the suitability of an annuity product should be carefully considered prior to investing.
This material must not be used without the Polaris Select Investor Variable Annuity product brochure; it cannot be used
alone. Polaris Variable Annuities are sold by prospectus only. The prospectus contains the investment objectives, risks,
fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered
carefully before investing. Please contact your insurance-licensed financial advisor or call 1-800-445-7862 to obtain a
prospectus. Please read the prospectus carefully before investing.
Additional information about the Investor Questionnaire and Polaris Portfolio Allocator models
•The Investor Questionnaire is intended to assist you in identifying your general attitude towards investment risk based on your responses to the questions.
It does not consider other important factors, such as your financial resources, personal situation, investment goals, tax situation and other relevant
factors. The portfolios used in the questionnaire are hypothetical; they are not based on an actual investment in a specific portfolio. The portfolios are for
illustrative purposes only and do not represent past or future performance of any specific investment or portfolio. The Polaris Portfolio Allocator models
and Investor Questionnaire are designed and licensed by Ibbotson Associates, Inc. (“Ibbotson”). These materials are provided for educational purposes
only and should not be considered investment advice. Ibbotson does not endorse and/or recommend specific financial products that may be used in
conjunction with the models and questionnaire. Please consult your financial advisor for assistance in developing a portfolio specific to your needs and
objectives before investing. Ibbotson Associates, Inc. is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Ibbotson is not
acting in the capacity of an advisor to individual investors. Ibbotson Associates, Inc. and Morningstar are not affiliated with SAAMCo.
•The Investor Questionnaire is not approved for use with participants in group retirement plans governed by ERISA.
Annuities are long-term investments designed for retirement. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce
benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary
income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. An investment in Polaris involves investment risk, including possible
loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested.
All contract and optional benefit guarantees, including any fixed account crediting rates or annuity rates, are backed by the claims-paying ability of
the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this
annuity is purchased or any affiliates of those entities and none makes any representation or guarantees regarding the claims-paying ability of the issuing
insurance company.
Polaris Select Investor Variable Annuity, form number AG-803 (7/13), is issued by American General Life Insurance Company (AGL). In New York,
Polaris Select Investor Variable Annuity, form number US-802 (5/14), is issued by The United States Life Insurance Company in the City of New
York (US Life). Distributed by AIG Capital Services, Inc. (ACS), Member FINRA, 21650 Oxnard Street, Suite 750, Woodland Hills, CA 91367-4997,
1-800-445-7862. AGL, US Life and ACS are members of American International Group, Inc. (AIG).
© 2015 American International Group, Inc. Polaris® is a registered trademark. All rights reserved.
R5450RTQ.2 (7/15)

Polaris Select Investor

Transcription

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