BUILD YOUR OWN PENSION PLAN
TWO CASE STUDIES: JOAN & JANE
Ten years ago, Joan invested her $100,000 401(k) lump-sum in a no-load S&P 500 Index mutual fund.
Unfortunately, over the last ten years, Joan's Index fund lost 25% of its value, leaving her with less than $75,000.
Ten years ago, Jane also had a $100,000 401(k) - which she put in a tax-deferred indexed annuity with a 10% bonus.
Even though the stock market was down, Jane's principal and gains were protected against loss and indexed to market gains.
2000-2010: JOAN'S MUTUAL FUND LOST 25%
ENDING VALUE: $74,747
.
2000-2010:JANE'S
ANNUITY GAINED 67%
ENDING VALUE:
$166,558
.
If Jane had opted for a fixed account
option in the down-market years,
her annuity would have increased even more over the same period: 81%.
Since Jane's annuity is part of her retirement
plan, she made sure to choose the
Lifetime Income Benefit Rider - which will ensure her a
guaranteed income as long as she lives.
Jane's annuity's Income Rider compounds
at 8% a year, guaranteed.
After 10 years, her Income Account Value will grow to $273,481.
At age 70, her annuity will provide a guaranteed annual income of 6% of
this figure for life.
That's $14,249 a year that Jane cannot
outlive.
.
In addition,
after the first year, she can withdraw up to 10% of her annuity value
a year,
penalty-free, for any purpose and up to 100% in the event of a terminal
illness diagnosis.
After 3 years, she may withdraw 100% in the event of nursing home confinement.
In the event of death, the full value is payable to her beneficiaries
without surrender charges.
SUITABLE FOR NON-QUALIFIED & QUALIFIED FUNDS (INCLUDING TAX-FREE ROTH IRAs).
FOR ILLUSTRATION PURPOSES ONLY - NOT AVAILABLE IN ALL STATES
Indexed
Annuities are products of the insurance industry and are not guaranteed
by any bank or FDIC insured.
An annuity is a contract between you and an insurance company providing
guaranteed interest and guaranteed income options.
Guarantees are backed by the financial strength and claims-paying ability
of the insurance company.
Please refer to your state Office of the Insurance Commissioner for individual
state guarantees.
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