THE NEXT GENERATION OF GUARANTEED LIFETIME INCOME INSURANCE

Transcription

1 THE NEXT GENERATION OF GUARANTEED LIFETIME INCOME INSURANCE Do You Have Home, Health, and Life Insurance? Shouldn t You Insure Your Retirement Income As Well? THE FAIRFAX GLOBAL GUARANTEED LIFETIME INCOME PORTFOLIO is made up of a Fairfax Global Markets investment account combined with the Aria RetireOne Transamerica II insurance policy. - the Fairfax Global investment account. This insurance contract, when added to the - invested plus the potential for annual stepups. - - lifetime income insurance policy. (See last four THE FAIRFAX GLOBAL GUARANTEED LIFETIME INCOME PORTFOLIO when combined with the Aria RetireOne the income security and peace of mind ment s upside potential. THE FAIRFAX GLOBAL GUARANTEED LIFETIME INCOME PORTFOLIO with the Aria RetireOne Transamerica II dilemma of today s investor how to par- - Today s investors do indeed face a dilem- market of the past decades has created 1.

2 The Dilemma The 57% stock market downturn in the S&P 500 Index in wiped positive results as the market recovered. rally choose to invest more conservatively and may even stay in cash rather than fore retirement. some investors choose annuities, trad- returns of 4-8%. THE FAIRFAX GLOBAL GUARANTEED LIFETIME INCOME PORTFOLIO with the Aria RetireOne Transamerica II insurance This lifetime income insurance policy is simply added to a traditional investment kets. Gains in THE FAIRFAX GLOBAL GUAR- ANTEED LIFETIME INCOME PORTFOLIO with the Aria RetireOne Transamerica II insurance policy are uncapped, so investors Plus, THE FAIRFAX GLOBAL GUARAN- TEED LIFETIME INCOME PORTFOLIO with the Aria RetireOne Transamerica II insurance policy is fully liquid, with no no-load, no-commission structure! With THE FAIRFAX GLOBAL GUARAN- TEED LIFETIME INCOME PORTFOLIO combined with the Aria RetireOne Transamerica II insurance policy, investors can - ation over time. 2.

3 FAIRFAX GLOBAL GUARANTEED LIFETIME INCOME PORTFOLIO with the Aria RetireOne Transamerica II insurance policy, NO PERFORMANCE CAPS: Whatever your Fairfax Global investment portfolio and principal security, as in indexed annuities. Investor retains ownership and control of his IRA or investment account, and the investor s custodian holds all portfolio assets. In contrast, with a standard annuity, ownership and control of the investment account transfers to the insurance company. depletion of assets held in the investor s ment account. Guarantees a lifetime income stream principal invested plus the potential for annual step-ups. That income stream can increase based on account performance and/or interest rates; plus, withdrawal amounts will never - principal invested in the Fairfax Global investment account. Low cost, no load, no-commission structure. Full liquidity of assets in the investment account available at all times with no portfolio assets. Hence, this insurance investment portfolio for a certain time period. Once the portfolio has reached a desired asset level, the investor may choose to terminate the policy. This FAIRFAX GLOBAL GUARANTEED LIFETIME INCOME PORTFOLIO with the Aria RetireOne Transamerica II insurance - retirement. of the investor and spouse, the investor s ment account on a stepped up tax basis. 3.

4 Difference between the Aria RetireOne Transamerica II Insurance Policy and Annuities 4.

5 How Does The Aria RetireOne Transamerica II Insurance Policy Work? certain Fairfax Global Markets separately provide an investor and spouse a lifetime principal invested in the Fairfax Global investment account plus any step-ups for positive investment performance. invested with Fairfax Global. The per- cipal, plus step-ups for positive investment performance, can be withdrawn spouse live. On Day 1, investors will know the minimum amount of their future lifetime income they will receive at a time when they will need it most retirement. Example: An investor invests in one of the Fairfax Global Markets investment portfolios with an initial principal investment of $500,000 and opts to add THE FAIRFAX GLOBAL GUARANTEED LIFETIME INCOME PORTFOLIO with the Aria RetireOne Transamerica II insurance policy (Withdrawal The investor would be able to withdraw a as he or she lives. Withdrawals are taken from the investment account. this protection, therefore, even if the ac- ment, the insurance company, continues to pay the $25,000 annually for the life of the investor and spouse. withdrawals, and the withdrawal annual look-back, rather than just on the 5.

6 Peace of Mind The 4% to 8% annual payment will vary Global investment accounts remain fully in- select mutual funds. never be based on an amount lower than money out of the account before the live, the investor and spouse will continue principal, plus any step-ups for positive investment performance. Even if the stock market experiences another bear market like or , and the investment account portfolio at the time the annual The Aria RetireOne Transamerica II insur- spouse will receive income for life, even Assets remain under the control of the in- At the death of the investor and spouse, the investor s heirs will inherit any assets The Aria RetireOne Transamerica II insurance policy can be added to tax quali- - annuity. The Aria RetireOne Transamerica II insurance policy can create a pension-like income stream. 6.

7 Getting Started Is As Easy As 1, 2, 3! Work with Fairfax Global Markets to choose your investment portfolio. income protection of the Aria RetireOne Transamerica II insurance policy. - This process provides an investor and wrapped around the Fairfax Global Mar- The Aria RetireOne Transamerica II insurance policy provides income protection when markets are down, and income - - For example, if an investor purchases this insurance policy on an investment account - that payments of 5% of the $500,000 initial account value, or $25,000, will be available annually for the investor and Then, if the account value is depleted, the insurance company will continue to make those $25,000 annual payments to the investor and spouse for their lifetimes. For example: 5% on an account worth $500,000 would pay $25,000 per year, but Another example: makes an investment of $1 million in the Aria RetireOne Transamerica II insurance policy. 7.

8 The annual guaranteed payments can increase if the value of the investment account increases, giving investors access to market upswings while still protecting them from downturns. Higher Percentage Payouts the Longer One Waits over a few years to $880,000. When she is ready to retire, she can collect income based on the portfo- she can withdraw 5% a year of the $1.1 million total value of her investment declines due to poor increase in the future. Theoretically, she could deplete her $880,000 ac- payment. FAIRFAX GLOBAL GUARANTEED LIFETIME INCOME PORTFOLIO with the Aria RetireOne Transamerica II insurance With millions of baby boomers headed to retirement without traditional pension plans as safety nets, THE FAIRFAX GLOBAL GUARANTEED LIFETIME IN- COME PORTFOLIO with the Aria RetireOne Transa- if the stock market severely declines in a future bear market. 8.

9 THE CONCLUSION With millions of baby boomers headed to retirement without traditional pension plans as safety nets, THE FAIRFAX GLOBAL GUARANTEED LIFETIME INCOME PORTFOLIO with the Aria investor lives and even if the stock market severely declines in a future bear market. formance just prior to or in early retirement or who be absolutely necessary. At a 5% annual withdrawal rate, a static invest- depleted in less than 19 years. This is a convenient way for an investor to pro- matter how his investments perform. Work with Fairfax Global and the Aria RetireOne Transamerica II insurance policy to secure your future lifetime income today! Please call Fairfax Customer Support Services the bottom line question everyone must ask, is it possible that the investor and spouse may live the answer is yes, this insur- lifetime income. - - The Aria Transamerica II RetireOne insurance policy is sold by Aria Retirement Solu- - the RetireOne product are described in the prospectus. Investors should carefully re- - Insurance Company. Paul Dietrich is not licensed to sell insurance products. All questions - - The information contained herein has been obtained from sources believed to be reliable, if you need assistance. Fairfax Global Markets PO Box West Washington Street Middleburg, Virginia

10 RETIREONE TRANSAMERICA II Contingent Deferred Annuity PORTFOLIO CREATED & MANAGED BY: Fairfax Global Advisors / Active Permanent For information about the managed portfolio*, please contact Paul Dietrich at (203) or pdietrich@fairfax-global.com. RETIREONE TRANSAMERICA II OFFERED BY: ARIA RETIREMENT SOLUTIONS For information about the income guarantee, contact: Cindy Ramsey at or cindy.ramsey@aria4advisors.com. PORTFOLIO MIX PORTFOLIO HOLDINGS Cash 45.0% CASH Cash-equivalent International Investment Grade Debt 25.0% ITIP ishares International Inflation-Linked Bond Fund Core Investment Grade Debt 20.0% SHY ishares Barclays 1-3 Year Treasury Bond Fund Commodities 10.0% IAU ishares Gold Trust Certificate Fee Percentage: 0.85% Fee option: 3 Investment Profile: F The Account must be invested at all times in accordance with the composition requirements of the Certificate. The Certificate Fee may go up or down if the Investment Profile changes. The mutual funds listed as Eligible Assets are not offered, recommended or endorsed by Transamerica Advisors Life Insurance Company. All funds have been assigned Asset Class Categories for Eligible Funds based on certain criteria which may or may not be consistent with the industry. The funds may not be categorized in the same Asset Class Category as that same fund utilizing different methodology. * This advisor may not be licensed as an insurance producer. If not, they may not answer questions about the RetireOne Transamerica II CDA. As mentioned above, please contact Aria with any specific questions you may have about the income guarantee. Guarantees are based on the claims paying ability of Transamerica Advisors Life Insurance Company. Securities Offered through Protected Investors of America, Member FINRA/SIPC, registered in all 50 states. Insurance policies are sold by Aria Retirement Solutions, Inc. doing business in California as Aria Insurance Solutions, Inc. (San Francisco, CA), a licensed insurance agency (CA License #0H44773). Insurance policies may not be available in all states. ROTAIIPBO South First Street Suite 600 Louisville KY ARIA (2742)

11 RETIREONE TRANSAMERICA II Contingent Deferred Annuity PORTFOLIO CREATED & MANAGED BY: Fairfax Global Advisors / Stock ETF Strategy For information about the managed portfolio*, please contact Paul Dietrich at (203) or pdietrich@fairfax-global.com. RETIREONE TRANSAMERICA II OFFERED BY: ARIA RETIREMENT SOLUTIONS For information about the income guarantee, contact: Cindy Ramsey at or cindy.ramsey@aria4advisors.com. PORTFOLIO MIX PORTFOLIO HOLDINGS Cash 75.0% CASH Cash-equivalent Core Investment Grade Debt 5.0% SHY ishares Barclays 1-3 Year Treasury Bond Fund 10.0% MUB ishares S&P National AMT-Free Municipal Bond ETF Commodities 10.0% IAU ishares Gold Trust Certificate Fee Percentage: 0.85% Fee option: 3 Investment Profile: F The Account must be invested at all times in accordance with the composition requirements of the Certificate. The Certificate Fee may go up or down if the Investment Profile changes. The mutual funds listed as Eligible Assets are not offered, recommended or endorsed by Transamerica Advisors Life Insurance Company. All funds have been assigned Asset Class Categories for Eligible Funds based on certain criteria which may or may not be consistent with the industry. The funds may not be categorized in the same Asset Class Category as that same fund utilizing different methodology. * This advisor may not be licensed as an insurance producer. If not, they may not answer questions about the RetireOne Transamerica II CDA. As mentioned above, please contact Aria with any specific questions you may have about the income guarantee. Guarantees are based on the claims paying ability of Transamerica Advisors Life Insurance Company. Securities Offered through Protected Investors of America, Member FINRA/SIPC, registered in all 50 states. Insurance policies are sold by Aria Retirement Solutions, Inc. doing business in California as Aria Insurance Solutions, Inc. (San Francisco, CA), a licensed insurance agency (CA License #0H44773). Insurance policies may not be available in all states. ROTAIIPBO South First Street Suite 600 Louisville KY ARIA (2742)

12 Powered by TCPDF ( IMPORTANT INFORMATION ABOUT CDAs Contingent Deferred Annuities (CDAs) can play an important role in your retirement plan, but they are not for everyone. Before investing, you and your Aria representative should discuss aspects that affect the appropriateness for your situation, including cost, investment timeframe and other retirement assets you may have. An Aria registered representative can help you determine whether this annuity may be appropriate for you. IMPORTANT INFORMATION ABOUT RETIREONE TRANSAMERICA II The RetireOne Transamerica II solution requires an investor s holdings to remain fully invested in certain specific investments ( Eligible Assets ). It does not guarantee Eligible Asset performance or against a loss of principal. Ownership of the Eligible Assets on which the guarantee is based remains with the investor and can be accessed at any time, but withdrawals in excess of those permitted under the certificate terms will diminish or eliminate future guarantees. If the investor s Covered Asset Value is depleted to zero by other than Excess Withdrawals, Transamerica Advisors Life Insurance Company makes payments based solely on its claims-paying ability, provided that the purchaser honors the terms of the annuity. The annuity has no cash value, surrender value or death benefit. You may never receive the benefits available under the annuity, because the Eligible Assets may perform well enough that it is never reduced to zero. The annuity will terminate and no benefit payments will be made if 1) withdrawals are made in excess of those permitted, which reduces the Coverage Base or Coverage Amount to zero; 2) the annuity Certificate Fee is not paid; 3) assets are not allocated exclusively to Eligible Assets; or 4) Covered Asset Pool composition requirements are not met. See prospectus for more information on termination of the annuity. Reallocation and investment performance may change your Investment Profile and Certificate Fee FEES The Eligible Funds initial Certificate Fee is based on the Investment Profile and Fee Option selected and ranges from 0.80%-2.35%. The Eligible Strategy initial Certificate Fee is based on the Fee Option selected and ranges from 0.95%-1.60%. All fees are assessed quarterly. If an Automatic Step-Up occurs, the current Certificate Fee Percentage in effect at the time of the step-up will be applicable, which could lead to an increase or decrease in your Certificate Fee. The Certificate Fee Percentage can increase by no more than 0.75%. These fees are in addition to any charges that are imposed in connection with advisory and other services or charges (including sales loads or brokerage commissions) imposed by or in connection with the Eligible Assets in which you are invested as well as any fees that apply if used with your Account. The fee structure is as follows: FEE OPTIONS The Fee Options determine the method for paying your Certificate Fee and Advisory Fee(Annual Fee Allowance). The Annual Fee Allowance is the total applicable Certificate Fee and/or Advisory Fee that may be withdrawn each Certificate Year without such withdrawals being considered an Excess Withdrawal. Option 1 The Certificate Fee is based on the aggregate value of the Covered Assets and is deducted from a separate cash account established with the Financial Institution. Option 2 and 3 The Certificate Fee is based on the Coverage Base and is deducted from a separate cash account established with the Financial Institution. The Advisory Fee is based on and deducted from the Covered Assets. The percentage is up to the maximum of either 1% or 1.5%, depending on the Fee Option. Option 4 The Certificate Fee is based on the Coverage Base and is deducted from the Covered Assets. Option 5 and 6 The Certificate Fee is based on the Coverage Base and is deducted from the Covered Assets. The Advisory Fee is based on and deducted from the Covered Assets. The percentage is up to the maximum of either 1% or 1.5%, depending on the Fee Option. CERTIFICATE FEE REDUCTIONS The Certificate Fee may be reduced by no more than 0.10% if 100% of the Covered Asset Pool is invested in a predefined group of Eligible Funds. The fee reduction associated with the Eligible Fund group may be introduced, discontinued or revised at any time. The Certificate Fee is reduced by 0.05% for net Certificate Contributions (aggregate Certificate Contributions less Excess Withdrawals) of $500,000 or higher. TAXATION Wrapping a custodial account with RetireOne Transamerica II does not impact the taxation of distributions from that custodial account. If and when that custodial account is depleted, benefit payments from Transamerica would be subject to ordinary income taxes. OTHER IMPORTANT INFORMATION The guaranteed lifetime payments are backed by the claims-paying ability of Transamerica Advisors Life Insurance Company. They are not backed by any other entity, including the administrator, the broker/dealer from which this annuity is purchased or any affiliates of those entities. In addition, none make any representations or guarantees regarding the claims-paying ability of Transamerica Advisor Life Insurance Company. Guarantees do not apply to the mutual funds or ETFs. The RetireOne Transamerica II annuity is issued by Transamerica Advisors Life Insurance Company, Little Rock, AR and is underwritten by Transamerica Capital, Inc. The annuity may not be available in all states or markets. Features and benefits may vary by state and market. In some states the annuity is issued as an individual contract instead of a group certificate. Certificate Form SALB2-CERT-0513 and Contract Form SALB2-IC-0513 (may vary by state). Annuities may lose value and are not bank deposits, are not FDIC insured, and are not insured or endorsed by a bank or any government agency. A current prospectus for this product should either precede or accompany this material. Investors should consider the investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the product and should be read carefully before investing. 222 South First Street Suite 600 Louisville KY ARIA (2742)