Understanding ROI

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Understanding Return on Investment

Return on investment (ROI) is the ratio of money gained or lost on an investment relative to the amount of money invested.

Return on investment is often assessed by using an index that provides historical returns on financial benchmarks or investments. Common indices include:

• Consumer Price Index (CPI)

• Treasury Bill (T-Bill)

• Mortgage Index

• S&P 500

Typically, investments with the least volatility, such as cash instruments, offer the least return because of their guarantee feature—your risk is minimal. Equity investments can potentially offer a higher return on investment in the long run but are characterized by volatility—your risk is high. Generally government bonds and Treasury bills are considered stable.

Achieving financial stability is important to Americans. As an investor, you are likely to be interested in developing a financial plan that offers flexibility: solutions to suit your changing needs. As you invest, you should consider investment choices that offer customization and factor in your risk tolerance and how much you should invest.

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To help the government fight the funding of terrorism and money-laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who purchases certain annuity products. What this means for you: When you purchase certain annuity products from us, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may ask to see your driver's license or other identifying documents.

Securities and investment advisory services are offered by VALIC Financial Advisors, Inc., member FINRA, SIPC and an SEC-registered investment advisor.

VALIC represents The Variable Annuity Life Insurance Company and its subsidiaries, VALIC Financial Advisors, Inc. and VALIC Retirement Services Company.

This information is general in nature and may be subject to change. Neither VALIC nor its financial advisors or other representatives give legal or tax advice. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For legal or tax advice concerning your situation, consult your attorney or professional tax advisor.