Principal-protected notes (PPNs) are debt instruments that are typically created by an investment bank. They are one example of a type of investment
known as structured products. As the name implies, a PPN is designed to return the initial investment, plus a return based on some other asset,
index, or market data. To do that, PPNs generally combine various types of investments. For example, a PPN might pair a zero-coupon bond to cover
the principal with a derivative based on stock futures that determines your rate of return--if any--on that principal. Principal-protected certificates of
deposit (CDs) function much like PPNs, except that repayment of principal may be funded by a security that’s covered by the same Federal Deposit
Insurance Corporation (FDIC) insurance that governs other CDs.
Creditworthiness of the issuer is key. A principal-protected note is essentially an unsecured debt owed by the investment bank that issued it (which
may not be the financial institution from which you purchase it). If the issuer goes under, investors are treated just as other unsecured creditors
are, as holders of Lehman Brothers PPNs learned to their sorrow when that company filed for bankruptcy.
Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, an independent broker/dealer, and are not insured by FDIC,
NCUA or any other government agency, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution,
and are subject to risks, including the possible loss of principal.
Investors should consider the investment objectives, risks, and charges and expenses of variable annuities, carefully before
investing. The prospectus contains this and other important information. Prospectuses for both the variable annuity contract and
the underlying funds are available from your financial advisor and should be read carefully before investing.
Variable annuities are long-term investment alternatives designed for retirement purposes. Withdrawals of taxable amounts are subject to income tax,
and if taken prior to age 59 1/2, a 10% federal tax penalty may apply. Early withdrawals may be subject to withdrawal charges. Partial withdrawals
may also reduce benefits available under the contract as well as the amount available upon a full surrender. Guarantees are based on the claims
paying ability of the issuer. The selection of additional protection features, options or riders will result in higher variable annuity charges.
An investment in the securities underlying variable annuities involves investment risk, including possible loss of principal. The contract, when redeemed,
may be worth more or less than the total amount invested. Past performance is no guarantee of future results. An Annuity Note is not a promissory
note, bond, debenture, evidence of indebtedness, or in general, any interest or instrument commonly known as a “bond.”