- Step Up and Lock Accumulation: During accumulation you receive an interest credit tied to a stock index with a ceiling. If the stock index goes positive for the year you get the positive return up to a maximum of the ceiling. Once you receive this interest credit, it is locked into your account. It can't be taken away no matter how badly the market does in the future. If the index goes negative you receive a 0% credit for that year. You sleep well because your savings are protected. In addition to the good night's sleep you are getting, your average interest credit should be much higher than in a fixed annuity or a CD.
- The income rider provides high guarantees. In a fixed indexed annuity with this rider [rider has a small cost attached to it], you have a mirroring account called an income account. The purpose of this account is to simply determine how much annual income you will receive. On this account you sometimes receive an initial bonus and always have a minimum return guarantee that is currently between 5-7.5%. So each year you either receive the minimum guarantee or the actual index interest credit whichever is higher. The minimum guarantee interest credit lasts between 10 and 20 years depending on which product you choose. You also know the factor that will be used to determine your annual income. The factor is the multiplier applied to your total income value, which determines guarantee annual income. This factor gets larger the older you are when you start income. But you know what this will be in advance. So you know the minimum amount of lifetime income you will receive when you purchase this annuity.
- You do not lose the ability to access your money you have put into this annuity even after you start taking income. During the accumulation phase you can remove your money from this annuity subject to surrender fees in the first few years. You receive all those locked in accumulations. Any year you can take out 10% of the value without penalties or fees. And even after you start taking out income you can withdraw your money. If you are getting income they simply subtract the percentage of money you take out from your income stream. So if you take out 25% of the value, then you get 25% less annually going forward.
So imagine how it would change your stress level if you take your savings and put it into a product that has a substantial minimum guarantee and the ability to create retirement income that is guaranteed to last your life or you and your spouses life?
Contact me to talk further about this product and how it would fit into your retirement strategies.