Facts About Fixed Index Annuities

Facts About Fixed Index Annuities

Guarantees & Tax Deferral for Your Retirement Planning Strategies

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Retirement Planning Strategies

Retirement Planning Strategies

• The good news is that we’re living longer

• The challenge we face • The challenge we face is not outliving our income

PURCHASE OF AN ANNUITY IS AN IMPORTANT FINANCIAL DECISION. YOU SHOULD HAVE A FULL

DISCUSSION WITH YOUR INSURANCE AGENT BEFORE MAKING ANY DECISION.

Common Issues Consumers are Facing Today

Common Issues Consumers are Facing Today

• Underestimating how much income they’ll need after they retire

• Underestimating how long they’ll live

• Overestimating how much they can withdraw from their portfolio without depleting it

Common Priorities of ThoseIn or Nearing Retirement

Common Priorities of ThoseIn or Nearing Retirement

1. Maintain financial independence

2. Avoid depending on family members for your care

3. Protect your assets and have an estate for your heirs

4. Alleviate concerns of becoming a financial burden to your

loved ones

5. Preserve your wealth created over a lifetime

6. Maximize the likelihood that you have access to

quality care

7. Avoid leaving a legacy of debt to your spouse

Financial ConcernsFinancial Concerns

• Income to maintain a reasonable standard of living

• Principal protection• Principal protection

• Outliving income

Financial SolutionsFinancial Solutions

• How can these questions be dealt with?

• What can you do to address these concerns?• What can you do to address these concerns?

• Is there a real solution?

Exploring the BenefitsExploring the Benefits

• Each solution offers it’s own benefits. Some of the solutions, such as fixed index annuities, include features to index annuities, include features to help hedge against inflation through tax deferral, some measure of liquidity or provide relatively more certainty in a fixed rate of return.

A Fixed Index Annuity May Be The Solution

A Fixed Index Annuity May Be The Solution

• Offers

– Guarantee of principal

– Tax deferral– Tax deferral

– Flexibility

– Access to your money

– Lifetime income stream

Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

Early withdrawals may result in loss of principal and credited interest due to surrender charges.

Fixed Index AnnuitiesFixed Index Annuities

• Offers interest rate guarantees

– Potential to receive credited interest based on

the growth of the client’s chosen external

market index

– Protection of your principal

Substantial federal tax penalties and surrender charges may apply to early withdrawals.



• Principal is guaranteed*

• Supported by claims-paying ability of the • Supported by claims-paying ability of the issuing insurance company

• The knowledge that your money will be there when you may need it most - in retirement

*Early withdrawals may result in loss of principal and credited interest due to surrender charges.


• Monthly income never reduced

• Insurance company • Insurance company assumes the risk

• Stream of income you cannot outlive

Guarantees are backed by the claims-paying ability of the issuing insurance company.

Here’s an Example of Annual Reset

Here’s an Example of Annual Reset

Initial Principal

Hypothetical example provided for illustrative purposes only, using one type of interest calculation method. It is not intended to

represent the results of any specific product. No single crediting method consistently delivers the most interest under all market conditions.

Year 1 Year 2 Year 3 Year 4 Year 50

Your credited interest is locked in, even if the market drops.

Any contract anniversary index gains are locked in every year, never any losses.

Even though index results may be negative, they do not adversely affect the annuity value.


• Vehicle for accumulating money ona tax-deferred basis

– No income taxes until funds are withdrawn– No income taxes until funds are withdrawn

– Pay taxes only on the credited interest

– May be a federal tax penalty if you’re under

age 59 ½

Early withdrawals may be subject to a surrender charge and, if taken prior to age 59 ½, are subject to a 10% federal tax penalty. Please note that [Agent name/Company name] and their representatives do not give legal or tax advice.

You are encouraged to consult your tax advisor or attorney


• Offers options and access to your money– Income

– Minimum distribution payments

– Lump sum payments• May incur surrender charge or penalty

– Credited Interest only withdrawals

– Penalty-Free annual withdrawals

Terms and conditions may vary. See the terms and conditions for each product.Any distributions are subject to ordinary income tax and, if taken prior to age 59 1/2, a 10% federal tax penalty.


• Life income option

– Retirement income

– What if you live for 15 or 20 years?– What if you live for 15 or 20 years?

– A fixed index annuity is designed to help

address this concern

– Income guaranteed for life

– Only a fixed annuity or a fixed index annuity

offers this guarantee


SummarySummary

• Fixed Index Annuities offer:

– Guarantee of principal

– Income you cannot outlive– Income you cannot outlive

– Tax deferral


Is a Fixed Index Annuity Right for You?

Is a Fixed Index Annuity Right for You?

• How long can I leave my money in

the annuity?

• What do I expect to use the money

for in the future?for in the future?

• Is a guaranteed interest rate more

important to me, with less risk of

losing the principal?

• Or, am I somewhere in between these two

extremes and willing to take some risks?

Documents

Facts About Fixed Index Annuities