| Safety is needed to protect your lifestyle... |
| Retired and Pre-retirement individuals may be more concerned about outliving their money than ever before. |
- There were 51,000 people age 100 and older in the year 20001
- In the year 2030, there are projections that there will be 324,000 people in the Unites States age 100 and older (almost a 1,000% increase since 1990)2
- 70 million people in the United States will be age 65 and older in 2035. This number is more than twice the current population of Canada.3
- Today, men and women age 50 and older now control 80% of all the money in U.S. Savings and Loan institutions and represent $66.00 of every $100.004
- The average 21st Century American will spend more years caring for their parents than for their children.5
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| As Americans, we work hard everyday to earn an income to take care of our families, educate our children and provide for a secure retirement. As retirement age draws near, we are wise to ask ourselves: |
- How safe are our Retirement Dollars?
- Will ever increasing taxes affect our standard of living?
- What happens to my family if I become ill?
- Do we really have enough money to retire?
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| Is there an ideal Retirement Portfolio? |
| Let's consider A GUARANTEED LIFETIME INCOME ACCOUNT |
| Indexed annuities are fixed annuities that provide an opportunity to potentially earn more interest than traditional fixed annuities and other safe money choices. This is accomplished by basing interest earned to an increase in an equity or bond index. You control how your annuity grows by choosing the index crediting methods on each Contract Anniversary. The most commonly used indices are:
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- S&P 500
- Dow Jones Industrial Average
- Lehman Brothers U.S. Aggregate.
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| A very important benefit is that your premium (cash you put in) and credited interest (you earn in the account) can never be lost due to index volatility. |
| When purchasing an indexed annuity, you own an annuity Contract backed by an insurance company, you are not purchasing shares of stock or indexes |
| Great for Recovering Loss on Stocks, Mutual Funds, Variable Annuities |
| Get more income from low paying CD’s, Money Market, Savings or Checking Account Balances |
| Great time to Rollover old Annuities, all IRA plans, 401K & 403b. |
| What are the Benefits of Fixed Annuities |
| Safety Of Premium (The money you put in) |
| Fixed annuities are considered a safe money alternative. It is actually a contract between you and the insurance company for guaranteed interest and guaranteed income options. |
| The insurance company insures this safety by investing your premium dollars in a diversity of investments that are closely regulated by the state insurance departments. These long-term investments ensure the stability of the company and your account to provide you with a competitive yield. |
| INCOME TAXES |
| One of the primary advantages of a deferred annuity is the opportunity to accumulate a substantial sum of money by allowing your premium and interest to grow tax-deferred. Unlike taxable investments, you pay no taxes on your annuity interest until you begin to take withdrawals or receive. This allows your money to grow faster than in a taxable account. With most annuities you earn interest on your premium, interest on your interest and interest on what you would normally pay in income taxes. |
| PROBATE AVOIDANCE |
| In the case of premature death, your beneficiaries have the accumulated funds within your annuity available to them and may avoid the expense, delay and publicity of probate. Your named beneficiaries can choose to receive the proceeds as monthly income or a lump sum payment. |
| LIQUIDITY |
| Liquidity varies based on the company who writes the annuity. |
- Most insurance companies provide you with opportunities to withdraw funds at any time after the first year.
- Others allow withdrawal of funds at anytime. (subject to applicable surrender charges).
- Most of the companies allow withdrawals of up to 10%, after the first contract anniversary.
- Many companies also have certain riders which increase liquidity in the event of confinement to a nursing home, or if diagnosed with a terminal illness.
- (Riders not available in all states.)
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| GUARANTEED INCOME |
| You have the ability to choose from several different income options, which include payments for a specified number of years or income for life, no matter how long you live. |
| The Lifetime Income Benefit Rider can be powerful for the retiree and pre-retiree who elects lifetime income since its strength is the result of an actuarial pool of thousands of contract holders paying an annual fee for a lifetime income benefit that all can elect but only some will. |
Sources:
- 2000 U.S. Census Bureau
- Augusta Chronicle
- U.S. Census Bureau; Age Wave, K. Dychtwald
- Age Power,
K. Dychtwald
Age Power, K. Dychtwald; National Association of Area Agencies on Aging, 1998-99; National Directory for Eldercare Information and Referral (Washington, DC. NAA, 1999 |
