Vanguard Financial Education Series. retirement income. How to turn retirement savings into

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Vanguard Financial Education Series. retirement income. How to turn retirement savings into"

Transcription

1 Vanguard Financial Education Series retirement income How to turn retirement savings into retirement income

2 You ve been saving for retirement for years. Now that your retirement is near, how will you convert your savings into regular income to help pay your bills? You can combine your retirement plan savings with other sources of retirement income, such as Social Security or a pension, to create a long-lasting stream of income.

3 Understand your distribution options When you retire, you ll decide what to do with a lifetime of retirement savings. We ll discuss your options with both a pension plan and a defined contribution plan, which is better known as a 401(k). If you have a pension, you ll probably be offered an annuity. An annuity is a stream of payments, typically guaranteed for your lifetime (plus the lifetime of your spouse if you choose a joint-and-survivor payout option). A second option that might be offered is to take a lump-sum distribution. Basically this means taking your money in a single withdrawal. This distribution could be rolled over to a new employer s retirement plan or to an IRA to preserve its tax-advantaged status. From an IRA, some or all of a distribution could be used to purchase an annuity from a private insurance company. Alternatively, a lump-sum distribution could be taken in cash. Just keep in mind that could trigger a big tax bill. When taking withdrawals from a tax-deferred account before age 59½, you may have to pay ordinary income tax plus a 10% federal tax penalty. Retirement Income > 3

4 Map out your distribution options Circle the type of plan that you have. Under each type of plan, you can see various distribution options. Not every plan offers every option you see. Circle the distribution options available to you. Retirement plans Defined benefit (Pension) Defined contribution (401(k), 403(b)) Annuity Lump sum Roll to IRA Leave in plan Take installments Take in cash Single life Joint and survivor Roll to defined contribution plan Take in cash Roll to IRA Invest and manage all Invest some and purchase income annuity Purchase income annuity with all

5 With defined contribution plans (better known as 401(k) or 403(b) plans), you usually have these four options: 1. Roll over to an IRA. Any earnings would continue to grow without being taxed, just as with your plan. However, with an IRA, you would have more investment options. For instance, you could consider using a portion of your money to purchase an annuity, which could provide lifelong income.* 2. Leave your money in the plan. You can usually leave your money in the plan if you have a balance of at least $5,000. Any earnings on your plan investments would remain tax-deferred until you make withdrawals. However, your investment and distribution options are limited to those in your employer s plan. 3. Take your money in installment payments. You might be able to receive your savings in regular payments (annual, semiannual, quarterly, or monthly) based on your life expectancy. 4. Take a lump sum in cash. If you have less than $1,000 in your plan, you may receive the proceeds in a check from your employer. You might be tempted to keep the money, but you would owe income taxes, plus a possible 10% federal penalty tax if you are under age 59½. You can avoid taxes and penalties by rolling over the money to an IRA within 60 days. *Subject to the claims-paying ability of the insurance company. Retirement Income > 5

6 Case study: Jim and Barbara Jim and Barbara adopt a systematic withdrawal plan Jim, an engineer, is retiring at age 66; his wife, Barbara, a teacher, is 62. Jim has looked forward to retiring and started saving in his company s 401(k) plan in the first year it was offered. Barbara qualifies for a pension. Jim plans to retire at the end of the year, and Barbara wants to continue working to earn income, but plans to shift to a part-time schedule. Jim and Barbara start by writing down their regular and variable sources of retirement income: Jim has $200,000 in a 401(k) invested equally in stocks and bonds. Barbara has a pension that will pay $950 a month. Jim will receive $1,900 a month in Social Security retirement benefits. Barbara will receive $700 a month from Social Security. Barbara will earn $450 a month as a substitute teacher for a few years. Because Jim and Barbara will have lifetime income from their Social Security benefits and her pension, they decide to keep Jim s savings in his 401(k) plan. This can provide them with income, plus the flexibility to meet emergencies. The day he retires, Jim withdraws 4% of his 401(k) balance, or $8,000, and deposits it into a taxable money market fund outside his 401(k) plan. From there, he arranges automatic monthly transfers of $667 to his checking account. When this money is combined with Social Security and Barbara s pension and teaching income, Jim and Barbara will have $4,667 a month in income the first year of retirement. 6 < Financial Education Series

7 As the years go by, Jim increases his initial withdrawal amount by the rate of inflation. The chart below shows how he adjusts his withdrawals to keep up with the rising cost of living. Staying flexible Jim plans to increase his withdrawals by the rate of inflation unless his account balance falls in a sharp market downturn. If the market were to drop, say, 10%, Jim might omit his inflation adjustments until it recovered. If the market fell 20%, he might reduce his withdrawals to help preserve his savings. For example, he could reset his withdrawal rate to 4% of his new, lower account balance. Each year when he makes his withdrawal, Jim also rebalances his 401(k) account to maintain his desired asset allocation of 50% stocks and 50% bonds. He does this by taking his withdrawal from the higherperforming investment category. For example, if his stock funds were up 10%, Jim would take his withdrawal from his stock funds. If Jim adheres to this disciplined withdrawal plan, his 401(k) could provide a steady stream of retirement income for more than 30 years. Of course, this hypothetical example does not represent the return on any particular investment. Please note that all investing is subject to risk, including the possible loss of the money you invest. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer s ability to make payments. Calculation Withdrawal amount Inflation rate Year one $200,000 x 4% = $8,000 3% Year two $8,000 x 1.03 = $8,240 2% Year three $8,240 x 1.02 = $8,405 4% Year four $8,405 x 1.04 = $8,741 Retirement Income > 7

8 Making your retirement savings last If you want your savings to last for 30 years or more, consider withdrawing no more than 4% of your retirement savings in the first year. After the first year, you might choose to increase your annual withdrawal each year by the rate of inflation. That way your spending power would keep up with the rising cost of living. But be flexible too. If a sharp market decline reduces the value of your portfolio (say by 10% or more), consider tightening your belt. You might skip inflation increases for a year or two, for example, or even reduce your withdrawal amount. This might help to prolong your retirement savings, although there are no guarantees. Retirees who undertake a systematic withdrawal plan like this should consider keeping some of their savings in a diversified mix of investments, including stocks and bonds. Stocks do have sharp price swings. But, compared with bonds and shortterm reserves, they have also 8 < Financial Education Series

9 shown greater potential for longterm growth, which may help to sustain your savings over a lengthy retirement. Just keep in mind that diversification does not ensure a profit or protect against a loss in a declining market. Create a cash reserve You might think of your retirement savings as divided into two broad categories: Long-term money, which remains invested in the markets (for example, in stock and bond mutual funds) to capture earnings and growth opportunities. A cash reserve your spending money for the next year or two which belongs in a low-risk money market fund or other liquid account. Your goal should be to protect the money you need for short-term expenses from the possibility of market declines. Deriving income from your retirement savings is a process of gradually transferring money from your long-term investments to a short-term spending account. You can move the amount you expect to need for 12 months into your money market fund at one time. That way you won t have to worry that market swings will affect your immediate spending needs. For convenience, you can link your money market fund electronically to your bank account, so you can easily move money to your checking or debit accounts. You could also set up automatic monthly transfers to your checking account to re-create the cash flow of a regular monthly paycheck. Retirement Income > 9

10 You will owe taxes on your withdrawals You have probably saved pre-tax dollars in your retirement plan, meaning the money you contributed to the plan wasn t taxed. In retirement, the tax bill comes due. If you withdraw pretax contributions and earnings from your retirement accounts, you will owe income taxes on the withdrawal amount. Consider setting aside a portion of each withdrawal to meet your income tax obligation. Many plan providers are required to withhold 20% of the withdrawal for federal taxes. (Your actual tax bill may be higher or lower.) After age 70½, you must take required minimum distributions (RMDs) from tax-deferred retirement savings.* If you don t, you could owe a substantial penalty tax on the amount you should have withdrawn and paid taxes on. In addition, you must still withdraw the correct amount and pay taxes on it. *If you are still working at age 70½, you can postpone taking withdrawals from your employer s plan, but not from a traditional IRA or pre-tax savings in a previous employer s plan. Take your withdrawals in a tax-efficient order If you have different types of retirement accounts, you may be able to prolong your savings by withdrawing money in the most tax-efficient order: 1. Spend from your taxable accounts first before taking withdrawals from tax-advantaged accounts. 2. Next, consider withdrawing money from tax-deferred accounts, such as an employer s plan or a traditional IRA.** 3. Finally, withdraw money from tax-free accounts, such as qualifying Roth contributions made to an IRA or your employer s plan. **As previously mentioned, you are required to take taxable distributions from tax-deferred accounts (such as an employer s plan or traditional IRA) after age 70½ or face a 50% federal penalty tax on the amount that should have been withdrawn. 10 < Financial Education Series

11 Free Vanguard RMD service After you reach age 70½, Vanguard can calculate required minimum distributions for your Vanguard IRA and any retirement plan accounts that offer the service. If your money is in a Vanguard IRA, call to have Vanguard send your RMD checks to you automatically. If you ve kept your money in your employer s retirement plan, call us at How to obtain additional regular income For many, Social Security provides a steady floor of support, and withdrawals from savings add flexibility. But if you re concerned about running out of money, consider using a portion of your retirement savings to purchase an annuity. An annuity is an insurance contract. In return for a single up-front payment, you receive regular payments that are guaranteed by the insurance company that sold you the annuity. The income can last for as long as you live, as long as you or your spouse lives, or for a specific number of years.* There s no hard-and-fast rule for retirees about how much of their savings they should annuitize, though 30% is a reasonable limit. Keep in mind that you typically lose access to whatever money you spend on an annuity and thereby lose some flexibility to respond to emergencies. If you re thinking of purchasing an income annuity, consider Vanguard Annuity Access, powered by the Income Solutions platform, which you can access at vanguard.com /income. In just a few minutes, you ll get customized online quotes from several highly rated insurance companies. *Product guarantees are subject to the claimspaying ability of the issuing insurance company. Retirement Income > 11

12 Important considerations when evaluating an annuity When shopping for an income annuity, you should seek a highly rated insurance company, which means that it is considered financially strong enough to honor its obligations. You may also want to purchase a policy with an inflation rider to preserve your spending power over a lengthy retirement. Insurance companies calculate annuity payments based on average life expectancies. The longer you expect to live, the more economic sense an annuity purchase may make. However, an income annuity purchase is typically irrevocable, so you do give up flexibility in return for guaranteed payments. What you re buying is a stream of regular income, but it s not generally an asset that you can pass along to heirs or cash in for emergencies. 12 < Financial Education Series

13 Vanguard Variable Annuity with a lifetime withdrawal benefit If you re looking for income for life but want to retain access to your investment, consider the Vanguard Variable Annuity with the Guaranteed Lifetime Withdrawal Benefit (GLWB) rider. Here are some features of the GLWB: You don t have to irrevocably surrender money as you do with immediate annuities. Your withdrawals can go up if the markets rise, but will never go down (unless you exceed your annual withdrawal amount, which could reduce or eliminate the benefit provided by the rider). You have access to your money at all times.* Your income is guaranteed by the issuer.** You can invest in one of three designated low-cost Vanguard portfolios. Unlike with many similar products, you can purchase the GLWB at any time before age 90 either when you buy the Vanguard Variable Annuity or sometime down the road when you re ready for an income stream. Learn more at vanguard.com or call *If you take withdrawals from a variable annuity prior to age 59½, you may have to pay ordinary income tax plus a 10% federal penalty tax. **Product guarantees are subject to the claimspaying ability of the issuing insurance company. The underwriting risks, financial obligations, and support functions associated with the products are the responsibility of the issuing insurance company. The issuing insurance company is responsible for its own financial condition and contractual obligations. Retirement Income > 13

14 Your action plan Map out your retirement savings distribution options (page 4). To make your savings last, consider withdrawing no more than 4% of your savings in the first year of retirement (page 8). In subsequent years, consider increasing your withdrawals by the rate of inflation to maintain purchasing power (page 8). In the event of a market drop of 10% or more, consider skipping inflation adjustments or reducing your withdrawals (page 8). Consider keeping one to two years of expenses in a cash reserve so your spending money is not at risk in the markets (page 9). Try to take your withdrawals in a tax-efficient order (page 10). Remember to take your required minimum distributions after you reach age 70½ to avoid a potential tax penalty (pages 10 11). You can replace a portion of your income with an annuity (pages 11 13). 14 < Financial Education Series

15

16 Institutional Investor Group P.O. Box 2900 Valley Forge, PA Connect with Vanguard retirementplans.vanguard.com > For more information about any fund or Vanguard variable annuity products, visit vanguard.com to obtain fund and variable annuity contract prospectuses. Investment objectives, risks, charges, expenses, and other important information about the product are contained in the prospectus; read and consider it carefully before investing. You can also write Vanguard at P.O. Box 2900, Valley Forge, PA An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in such a fund. Vanguard offers annuities through nonaffiliated insurance companies. Vanguard Annuity Access is offered in collaboration with Hueler Investment Services, Inc., through the Income Solutions platform. Income Solutions is a registered trademark of Hueler Investment Services, Inc., and used under license. United States Patent No. 7,653,560. Vanguard Annuity Access is provided by Vanguard Marketing Corporation, d/b/a VMC Insurance Services in California. The Vanguard Variable Annuity is a flexible-premium variable annuity issued by Monumental Life Insurance Company, Cedar Rapids, Iowa (NAIC No ), and in New York State only, by Transamerica Financial Life Insurance Company, Harrison, New York (NAIC No ). Form No. VVAP U 1101 (in Florida, Form No. VVAP U 1101 (FL), in Oregon, Form No. VVAP U 1101 (OR) (R), and in New York VVA NY 0208). GLWB Rider Form No. RGMB (in Florida, RGMB (SI)(FL), RGMB (JT)(FL), in Oregon RGMB (SI) (OR), RGMB (JT)(OR), and in New York RGMB (SI)(NY)(REV), RGMB (JT)(NY)(REV)), without agent representation. Policy and rider form numbers may vary by state and may not be available in all states. The Vanguard Group administers the Vanguard Variable Annuity for the issuer. Its variable annuity and investment costs rank among the lowest in the industry, according to Morningstar, Inc., December The Vanguard Group, Monumental Life Insurance Company, and Transamerica Financial Life Insurance Company do not provide tax advice. Investors are encouraged to consult a tax advisor for information on how annuity taxation applies to their individual situations The Vanguard Group Inc. All rights reserved. Vanguard Marketing Corporation, Distributor of the Vanguard Funds. BBBBFPYX

How will you spend your retirement savings?

How will you spend your retirement savings? How will you spend your retirement savings? Retirement income strategies Get income from a Vanguard IRA A Vanguard IRA can provide you a great deal of flexibility when withdrawing retirement income. Systematic

More information

Steady income with growth potential

Steady income with growth potential Steady income with growth potential Secure Income through the Vanguard Variable Annuity Product issued by Transamerica Premier Life Insurance Company and, in New York State only, by Transamerica Financial

More information

Your guide to annuitization

Your guide to annuitization Your guide to annuitization The Vanguard Variable Annuity is issued by Transamerica Premier Life Insurance Company and, in New York State only, by Transamerica Financial Life Insurance Company. 5070 (07/14)

More information

How to turn retirement savings into retirement income

How to turn retirement savings into retirement income How to turn retirement savings into retirement income You ve saved for retirement for years. Now that retirement is approaching, how can you create a regular stream of income from your savings to help

More information

How to turn retirement savings into retirement income

How to turn retirement savings into retirement income How to turn retirement savings into retirement income You ve saved for retirement for years. Now that retirement is approaching, how can you create a regular stream of income from your savings to help

More information

Protect your heirs by selecting the right structure for your Vanguard Variable Annuity

Protect your heirs by selecting the right structure for your Vanguard Variable Annuity Protect your heirs by selecting the right structure for your Vanguard Variable Annuity 5074 (04/11) Make the right choices when structuring your annuity When you buy a Vanguard Variable Annuity, you have

More information

What to do when you inherit a Vanguard Variable Annuity

What to do when you inherit a Vanguard Variable Annuity What to do when you inherit a Vanguard Variable Annuity The Vanguard Variable Annuity is issued by Transamerica Premier Life Insurance Company and, in New York State only, by Transamerica Financial Life

More information

Protect your plan savings for retirement. New York University 457(b) Deferred Compensation Plan

Protect your plan savings for retirement. New York University 457(b) Deferred Compensation Plan Protect your plan savings for retirement New York University 457(b) Deferred Compensation Plan Whether you have left the workforce or have simply changed employers, it is important to protect the money

More information

Your pension benefit options

Your pension benefit options 2 Your pension benefit options Traditional pension plans generally provide the option of a lump-sum payment or a fixed monthly payment for life through an annuity. The fixed monthly payment amount is usually

More information

Understanding Annuities

Understanding Annuities Annuities, 06 5/4/05 12:43 PM Page 1 Important Information about Variable Annuities Variable annuities are offered by prospectus, which you can obtain from your financial professional or the insurance

More information

Understanding Annuities: A Lesson in Variable Annuities

Understanding Annuities: A Lesson in Variable Annuities Understanding Annuities: A Lesson in Variable Annuities Did you know that an annuity can be used to systematically accumulate money for retirement purposes, as well as to guarantee a retirement income

More information

Basic Facts about Variable Annuities

Basic Facts about Variable Annuities Basic Facts about Variable Annuities Variable annuities are long-term investment vehicles that provide a unique combination of insurance and investment features. Fundamentally, a variable annuity is an

More information

Variable annuities. A tax-advantaged way to save for retirement

Variable annuities. A tax-advantaged way to save for retirement Variable annuities A tax-advantaged way to save for retirement Common terms Annuitant The person (may be the same as the contract owner) whose life expectancy is used to calculate the income payment amount

More information

Making Your Money Last

Making Your Money Last U.S. INVESTMENT POLICY GUIDANCE REPORT Making Your Money Last Everyone has individual retirement goals, but we all have one in common: ensuring our money lasts throughout retirement. Even a well-designed

More information

Understanding fixed index annuities

Understanding fixed index annuities Allianz Life Insurance Company of North America Understanding fixed index annuities M-5217 Page 1 of 12 Page 2 of 12 It s time to rethink retirement. In past years, the financial markets have experienced

More information

Understanding Annuities: A Lesson in Indexed Annuities

Understanding Annuities: A Lesson in Indexed Annuities Understanding Annuities: A Lesson in Indexed Annuities Did you know that an annuity can be used to systematically accumulate money for retirement purposes, as well as to guarantee a retirement income that

More information

Strategies for Turning Retirement Savings Into Retirement Income

Strategies for Turning Retirement Savings Into Retirement Income Private Wealth Management Products & Services Strategies for Turning Retirement Savings Into Retirement Income How to move from accumulating assets to utilizing them Retirement Income Planning is more

More information

Variable Annuity Overview

Variable Annuity Overview Variable Annuity Overview CAC.1162 (04.12) Protect Tomorrow. Embrace Today.TM When planning for your retirement, you ll find there are a variety of products, investments and strategies that can be utilized

More information

The Basics of Annuities: Planning for Income Needs

The Basics of Annuities: Planning for Income Needs March 2013 The Basics of Annuities: Planning for Income Needs summary the facts of retirement Earning income once your paychecks stop that is, after your retirement requires preparing for what s to come

More information

Understanding Annuities: A Lesson in Annuities

Understanding Annuities: A Lesson in Annuities Understanding Annuities: A Lesson in Annuities Did you know that an annuity can be used to systematically accumulate money for retirement purposes, as well as to guarantee a retirement income that you

More information

Variable Annuities Because Retirement Requires a New Way of Thinking

Variable Annuities Because Retirement Requires a New Way of Thinking Pacific Life Variable Annuities Because Retirement Requires a New Way of Thinking 13141-12A 5/12 5/15 13141-15A As You Plan for Retirement, Think Differently Whether you re approaching retirement or already

More information

SYSTEMATIC WITHDRAWALS AND TRANSFERS FROM TIAA TRADITIONAL

SYSTEMATIC WITHDRAWALS AND TRANSFERS FROM TIAA TRADITIONAL SYSTEMATIC WITHDRAWALS AND TRANSFERS FROM TIAA TRADITIONAL THE TIAA TRADITIONAL ANNUITY The TIAA Traditional Annuity is a guaranteed annuity backed by TIAA s claims-paying ability. In the accumulation

More information

Protecting Retirement Income and Assets

Protecting Retirement Income and Assets ONcore Variable Annuities Protecting Retirement Income and Assets Protect Guarantee retirement income without sacrificing your Plan Accumulate legacy to heirs. Access NOT A DEPOSIT NOT FDIC INSURED NOT

More information

Annuities The Key to a

Annuities The Key to a Annuities The Key to a Secure Retirement 1 Saving for retirement is crucial, and making sure those resources last throughout your lifetime is just as important. Annuities do both helping you save, then

More information

Fidelity Freedom Lifetime Income. Annuity SECURE A STREAM OF INCOME THAT IS GUARANTEED FOR LIFE.

Fidelity Freedom Lifetime Income. Annuity SECURE A STREAM OF INCOME THAT IS GUARANTEED FOR LIFE. Fidelity Freedom Lifetime Income SECURE A STREAM OF INCOME THAT IS GUARANTEED FOR LIFE. Not Part of the Prospectus Fidelity insurance products are issued by Fidelity s Life Insurance Company (FILI), 100

More information

The Basics of Annuities: Income Beyond the Paycheck

The Basics of Annuities: Income Beyond the Paycheck The Basics of Annuities: PLANNING FOR INCOME NEEDS TABLE OF CONTENTS Income Beyond the Paycheck...1 The Facts of Retirement...2 What Is an Annuity?...2 What Type of Annuity Is Right for Me?...2 Payment

More information

A PROFESSIONAL S GUIDE TO INCOME OPPORTUNITIES USING ANNUITIES

A PROFESSIONAL S GUIDE TO INCOME OPPORTUNITIES USING ANNUITIES A PROFESSIONAL S GUIDE TO INCOME OPPORTUNITIES USING ANNUITIES CPAs Attorneys Enrolled Agents Tax Professionals Professional Education Network TM www.edwardjones.com/teamwork CONTENTS 1 Introduction 2

More information

Glossary: The Language of Variable Annuities

Glossary: The Language of Variable Annuities Glossary: The Language of Variable Annuities Glossary: The Language of Variable Annuities A variable annuity (VA) is a long-term, tax-deferred investment designed to help investors save for retirement.

More information

for life A predictable monthly income stream. Option to choose an income that s guaranteed to last a lifetime.

for life A predictable monthly income stream. Option to choose an income that s guaranteed to last a lifetime. for life A predictable monthly income stream. Option to choose an income that s guaranteed to last a lifetime. Financial peace of mind during retirement. To enjoy a secure retirement, you need more than

More information

December 2014. Tax-Efficient Investing Through Asset Location. John Wyckoff, CPA/PFS, CFP

December 2014. Tax-Efficient Investing Through Asset Location. John Wyckoff, CPA/PFS, CFP John Wyckoff, CPA/PFS, CFP Your investment priorities are likely to evolve over time, but one goal will remain constant: to maximize your investment returns. Not all returns are created equal, however.

More information

Variable Annuities 101

Variable Annuities 101 WealthMark Advisory Services Philip Scholler President/CEO 5001 Horizons Drive Suite 201 Columbus, OH 43220 614-824-4352 phil@wealthmarkas.com www.wealthmarkas.com Inside Workbook: What Is a Variable Annuity?

More information

UNDERSTANDING FIXED INDEXED ANNUITIES

UNDERSTANDING FIXED INDEXED ANNUITIES UNDERSTANDING FIXED INDEXED ANNUITIES INTRODUCING FIXED INDEXED ANNUITIES Fixed Indexed Annuities combine the features of Fixed Annuities including tax-deferred interest accumulation, a minimum guaranteed

More information

Annuities. Introduction 2. What is an Annuity?... 2. How do they work?... 3. Types of Annuities... 4. Fixed vs. Variable annuities...

Annuities. Introduction 2. What is an Annuity?... 2. How do they work?... 3. Types of Annuities... 4. Fixed vs. Variable annuities... An Insider s Guide to Annuities Whatever your picture of retirement, the best way to get there and enjoy it once you ve arrived is with a focused, thoughtful plan. Introduction 2 What is an Annuity?...

More information

Understanding Annuities

Understanding Annuities Understanding Annuities Annuities issued by Pruco Life Insurance Company (in New York, issued by Pruco Life Insurance Company of New Jersey) and The Prudential Insurance Company of America. 0160994-00006-00

More information

you can take RMDs while growing and protecting your benefit

you can take RMDs while growing and protecting your benefit ANNUITIES VARIABLE you can take RMDs while growing and protecting your benefit MetLife s optional riders provide you with the RMD flexibility you need GMIB Plus and Enhanced Death Benefit What is a variable

More information

Saving for retirement with a 403(b) plan

Saving for retirement with a 403(b) plan Saving for retirement with a 403(b) plan 2 Saving for retirement with a 403(b) plan Saving for retirement with a 403(b) plan Retirement can be a welcome turning point in your life a time to enjoy hobbies,

More information

REVIEWING YOUR TIAA-CREF INCOME CHOICES A GUIDE TO YOUR PAYMENT OPTIONS

REVIEWING YOUR TIAA-CREF INCOME CHOICES A GUIDE TO YOUR PAYMENT OPTIONS REVIEWING YOUR TIAA-CREF INCOME CHOICES A GUIDE TO YOUR PAYMENT OPTIONS FLEXIBILITY & CHOICE TIAA-CREF UNDERSTANDS YOUR FINANCIAL PRIORITIES can change over time, which is why we offer you a wide range

More information

Managing Your Beneficiaries Inheritances

Managing Your Beneficiaries Inheritances Managing Your Beneficiaries Inheritances A Predetermined Beneficiary Payout Option 8/13 23220-13A You re in Control With the Predetermined Beneficiary Payout Option, you have the flexibility to choose

More information

Chapter 14. Agenda. Individual Annuities. Annuities and Individual Retirement Accounts

Chapter 14. Agenda. Individual Annuities. Annuities and Individual Retirement Accounts Chapter 14 Annuities and Individual Retirement Accounts Agenda 2 Individual Annuities Types of Annuities Taxation of Individual Annuities Individual Retirement Accounts Individual Annuities 3 An annuity

More information

Understanding Annuities

Understanding Annuities Retirement Planning Understanding Annuities Learn how these versatile investments can be part of your strategy for retirement savings and income. understanding annuities Annuities can help provide the

More information

Advisor s Edge Variable Annuity Product Guide

Advisor s Edge Variable Annuity Product Guide Advisor s Edge Variable Annuity Product Guide Advisor s Edge Product Guide Annuities issued by: Monumental Life Insurance Company Cedar Rapids, IA Underwritten and distributed by Transamerica Capital,

More information

Guaranteed Income for Life (GIFL) Rollover Variable Annuity IRA

Guaranteed Income for Life (GIFL) Rollover Variable Annuity IRA Guaranteed Income for Life (GIFL) Rollover Variable Annuity IRA Exclusively available for 401(k) plan participants with the John Hancock Guaranteed Income for Life in-plan benefit Annuity contracts are

More information

Variable Annuities. Reno J. Frazzitta Investment Advisor Representative 877-909-7233 www.thesmartmoneyguy.com

Variable Annuities. Reno J. Frazzitta Investment Advisor Representative 877-909-7233 www.thesmartmoneyguy.com Reno J. Frazzitta Investment Advisor Representative 877-909-7233 www.thesmartmoneyguy.com Variable Annuities Page 1 of 8, see disclaimer on final page Variable Annuities What is a variable annuity? Investor

More information

Performance Summary Second Quarter 2015

Performance Summary Second Quarter 2015 VANGUARD VARIABLE ANNUITY Performance Summary Second Quarter 2015 The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value

More information

LiveWell Fixed Index Annuity

LiveWell Fixed Index Annuity LiveWell Fixed Index Annuity Issued by Midland National Life Insurance Company Administered by 19231I PRT 03-14 1 May Provide Guaranteed Income for Life. Retain Control of Your Money. Potential for Stock

More information

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency Understanding annuities An Overview for Your Retirement No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 2/15 13096-15A Contents Get Ready

More information

Freedom Variable Annuity

Freedom Variable Annuity Freedom Variable Annuity Variable Product Series Building your future with a secure partner SM Kansas City Life Insurance Company Freedom Variable Annuity features at a glance Minimum deposit $25,000 minimum

More information

MEMBERS Future Income Annuity

MEMBERS Future Income Annuity MEMBERS Future Income Annuity GUARANTEED INCOME FOR LIFE Move confidently into the future MFA-875346-034-046 A financial services company serving financial institutions and their clients worldwide. It

More information

3/15 23203-15A. Annuity Distribution Options for Your Beneficiaries

3/15 23203-15A. Annuity Distribution Options for Your Beneficiaries 3/15 23203-15A Annuity Distribution Options for Your Beneficiaries Getting Started Beneficiary distribution options tied to annuity assets may differ depending on the types of retirement assets as well

More information

Income Plus Variable Annuity

Income Plus Variable Annuity Just the facts about New York Life... Income Plus Variable Annuity What is the New York Life Income Plus Variable Annuity? 1 Why should I consider Income Plus with the Guaranteed Future Income Benefit

More information

Understanding Annuities

Understanding Annuities Understanding Annuities Annuities ARE NOT INSURED BY FDIC OR ANY FEDERAL GOVERNMENT AGENCY MAY LOSE VALUE ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE IFS-A092313 Ed. 01/2005 Letter

More information

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency

No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency Understanding fixed annuities An Overview for Your Retirement No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency 3/15 23264-15A Contents Get

More information

Nationwide Quatro Select Annuity

Nationwide Quatro Select Annuity Spend more time with the people who matter most and less time planning for retirement. Nationwide Quatro Select Annuity Not a deposit Not FDIC or NCUSIF insured Not guaranteed by the institution Not insured

More information

Preference Premier. for your loved ones. Enhanced Death Benefit & Earnings Preservation Benefit. Protection Benefits ANNUITIES VARIABLE

Preference Premier. for your loved ones. Enhanced Death Benefit & Earnings Preservation Benefit. Protection Benefits ANNUITIES VARIABLE ANNUITIES VARIABLE Preference Premier for your loved ones. Protection Benefits Enhanced Death Benefit & Earnings Preservation Benefit ISSUED BY METROPOLITAN LIFE INSURANCE COMPANY what if you could provide

More information

Vanguard Financial Education Series investing. How to invest your retirement savings

Vanguard Financial Education Series investing. How to invest your retirement savings Vanguard Financial Education Series investing How to invest your retirement savings During your working life, you ve saved and invested for retirement. Now that you re finally reaching retirement, consider

More information

Important Information about your Annuity Investment

Important Information about your Annuity Investment Robert W. Baird & Co. Incorporated Important Information about your Annuity Investment What is an Annuity Contract? An annuity is a contract between you and an insurance company, under which you make a

More information

ONcore Variable Annuities. Guaranteed Lifetime Withdrawal Benefit Preferred IS Rider

ONcore Variable Annuities. Guaranteed Lifetime Withdrawal Benefit Preferred IS Rider ONcore Variable Annuities Guaranteed Lifetime Withdrawal Benefit Preferred IS Rider Building Your Retirement Income Strategy You ve spent years working hard and sacrificing to save money for your retirement.

More information

Important Information about your Annuity

Important Information about your Annuity Robert W. Baird & Co. Incorporated Important Information about your Annuity Annuities are long-term investments that may help you meet or supplement your retirement and other long-term goals. Annuities

More information

INCOME PLANNING FOR YOUR LIFETIME. THE FACTS ON ANNUITIES

INCOME PLANNING FOR YOUR LIFETIME. THE FACTS ON ANNUITIES { INCOME PLANNING FOR YOUR LIFETIME. } THE FACTS ON ANNUITIES ANNUITIES: INCOME PLANNING FOR YOUR LIFETIME Whether you are dreaming of golfing in Arizona or traveling around the world, a financially comfortable

More information

Minimum distribution. Making it simple

Minimum distribution. Making it simple Minimum distribution Making it simple Required minimum distributions What you need to know What are required minimum distributions?... 03 TIAA-CREF s Minimum Distribution Option (MDO)... 04 Is the Minimum

More information

Guaranteed income for life. In any market.

Guaranteed income for life. In any market. Guaranteed income for life. In any market. Schwab Retirement Income Variable Annuity with optional Guaranteed Lifetime Withdrawal Benefit. A variable annuity from Charles Schwab, issued by Pacific Life

More information

Understanding Annuities: A Lesson in Fixed Interest and Indexed Annuities Prepared for: Your Clients

Understanding Annuities: A Lesson in Fixed Interest and Indexed Annuities Prepared for: Your Clients Understanding Annuities: A Lesson in Fixed Interest and Indexed Annuities Prepared for: Your Clients Presented by: Arvin D. Pfefer Arvin D. Pfefer & Associates 7301 Mission Road, Suite 241 Prairie Village,

More information

Variable Annuities. Introduction. Settlement Options. Methods of Buying Annuities. Tracking Separate Accounts. Suitability. Tax Deferred Annuities

Variable Annuities. Introduction. Settlement Options. Methods of Buying Annuities. Tracking Separate Accounts. Suitability. Tax Deferred Annuities Variable Annuities Introduction Settlement Options Methods of Buying Annuities Tracking Separate Accounts Suitability Tax Deferred Annuities Using this study guide. This study guide is intended for use

More information

Innovative, flexible, low-cost retirement solution

Innovative, flexible, low-cost retirement solution TIAA-CREF Life Insurance Company Innovative, flexible, low-cost retirement solution The Intelligent Variable Annuity How do you define retirement? Some people dream of traveling. Others can t wait to roll

More information

Guardian Variable Annuities, The Guardian Variable Annuities, The ABC...123 Story

Guardian Variable Annuities, The Guardian Variable Annuities, The ABC...123 Story Guardian Variable Annuities, The Guardian Variable Annuities, The ABC...123 Story If history is any guide, the only constant is change. And with the recent volatility in the markets, many investors are

More information

Your retirement income. Managing your retirement plan assets

Your retirement income. Managing your retirement plan assets Your retirement income Managing your retirement plan assets Taking control of your retirement assets If you are changing jobs, displaced, or retiring, you may find yourself facing one of the most important

More information

Leaving your employer? Options for your retirement plan

Leaving your employer? Options for your retirement plan Leaving your employer? Options for your retirement plan Contents Evaluating your options 1 The benefits of tax-deferred investing 4 Flexibility offered by an IRA rollover 6 How to get started 9 Evaluating

More information

Annuities a source of guaranteed income, for life.

Annuities a source of guaranteed income, for life. Annuities a source of guaranteed income, for life. Experience the security and stability an annuity can provide for your long-term income needs, plus discover benefits that can help you pursue your financial

More information

MEMBERS Index Annuity

MEMBERS Index Annuity MEMBERS Index Annuity GUARANTEES, WITH FLEXIBILITY AND UPSIDE POTENTIAL Move confidently into the future 07-0002 REV 09MHC A financial services company serving financial institutions and their clients

More information

Maximize Your Retirement Income

Maximize Your Retirement Income Living Benefit Maximize Your Retirement Income Living Benefit Effective January 1, 2016 March 31, 2016 Annuities issued in all states except New York by Transamerica Life Insurance Company, Cedar Rapids,

More information

INVESTMENT AND PLANNING SOLUTIONS. Redefine your means in retirement. Member FINRA/SIPC

INVESTMENT AND PLANNING SOLUTIONS. Redefine your means in retirement. Member FINRA/SIPC INVESTMENT AND PLANNING SOLUTIONS Redefine your means in retirement Member FINRA/SIPC INVESTMENT AND PLANNING SOLUTIONS More guaranteed income to count on when you need it to count. It s taking that second

More information

SAVING FOR RETIREMENT. The ROTH

SAVING FOR RETIREMENT. The ROTH SAVING FOR RETIREMENT The ROTH CONTRIBUTION Option ABOUT TIAA-CREF TIAA-CREF is dedicated to serving the retirement needs of those in the academic, medical, cultural and research fields. We are committed

More information

Aim for the Horizon. Security. Growth. Flexibility. Strength. CONSUMER Guide

Aim for the Horizon. Security. Growth. Flexibility. Strength. CONSUMER Guide CONSUMER Guide AG HorizonIndex 9 Annuity AG HorizonIndex 12 Annuity index single-premium deferred annuity with premium bonus, market value adjustment and AG Lifetime Income Builder optional living benefit

More information

Tax-smart ways to save and invest. TIAA-CREF Financial Essentials

Tax-smart ways to save and invest. TIAA-CREF Financial Essentials Tax-smart ways to save and invest TIAA-CREF Financial Essentials Today s agenda: 1. Finding funds for saving 2. Tax law provisions promoting saving 3. TIAA-CREF savings opportunities 4. TIAA-CREF can help

More information

Variable Annuity. Variable Product Series. Building your future with a secure partner SM. Kansas City Life Insurance Company

Variable Annuity. Variable Product Series. Building your future with a secure partner SM. Kansas City Life Insurance Company Variable Annuity Variable Product Series Building your future with a secure partner SM Kansas City Life Insurance Company Variable Annuity Features at a Glance Minimum Deposit $5,000 minimum single deposit

More information

How to choose investments for your retirement

How to choose investments for your retirement How to choose investments for your retirement You have a lot of investment options in your retirement plan. Find out how to choose among them with this brochure. To put your financial plan into action,

More information

Consider the advantages of the Roth 403(b)

Consider the advantages of the Roth 403(b) Consider the advantages of the Roth 403(b) Your plan offers a way of saving for retirement known as the Roth 403(b) What is it? It s a way to get your money tax-free in retirement. You can make tax-free

More information

Advisor s Edge Variable Annuity Product Guide Effective July 1, 2015

Advisor s Edge Variable Annuity Product Guide Effective July 1, 2015 Advisor s Edge Variable Annuity Product Guide Effective July 1, 2015 Advisor s Edge Product Guide Annuities issued by Transamerica Premier Life Insurance Company Cedar Rapids, IA. Annuities are underwritten

More information

Three Guarantees, One Rider

Three Guarantees, One Rider Guaranteed Principal SolutionSM Rider Three Guarantees, One Rider Guaranteed Principal Solution Rider SM Effective May 1, 2015 Annuities issued in all states except New York by Transamerica Life Insurance

More information

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts

Traditional and Roth IRAs. Invest for retirement with tax-advantaged accounts Traditional and Roth IRAs Invest for retirement with tax-advantaged accounts Your Retirement It is your ultimate reward for a lifetime of hard work and dedication. It is a time when you should have the

More information

Your Number. Every person has one. ANNUITIES. Your future. Made easier. SM

Your Number. Every person has one. ANNUITIES. Your future. Made easier. SM Your Number. Every person has one. Not FDIC/NCUA Insured Not A Deposit Of A Bank Not Bank Guaranteed May Lose Value Not Insured By Any Federal Government Agency ANNUITIES Your future. Made easier. SM Know

More information

You ve worked hard for your savings. Now keep your savings working hard for you.

You ve worked hard for your savings. Now keep your savings working hard for you. You ve worked hard for your savings. Now keep your savings working hard for you. Retire with confidence A guide to your distribution options. You are now faced with an important financial decision When

More information

Fidelity Freedom Lifetime Income Annuity *

Fidelity Freedom Lifetime Income Annuity * Fidelity Freedom Lifetime Income Annuity * SECURE A STREAM OF INCOME 1 THAT S GUARANTEED 2 FOR LIFE. Fidelity insurance products are issued by Fidelity Investments Life Insurance Company (FILI) and, in

More information

advisory & Brokerage consulting services Make Your Retirement Savings Last a Lifetime

advisory & Brokerage consulting services Make Your Retirement Savings Last a Lifetime advisory & Brokerage consulting services Make Your Retirement Savings Last a Lifetime Member FINRA/SIPC ADVISORY & Brokerage consulting SERVICES Three Things to Consider When Planning for Retirement Today,

More information

Pacific. Income Provider. A Single-Premium, Immediate Fixed Annuity for a Confident Retirement. Client Guide 9/15 80002-15A

Pacific. Income Provider. A Single-Premium, Immediate Fixed Annuity for a Confident Retirement. Client Guide 9/15 80002-15A Pacific Income Provider A Single-Premium, Immediate Fixed Annuity for a Confident Retirement 9/15 80002-15A Client Guide Why Pacific Life Pacific Life has more than 145 years of experience, and we remain

More information

Learning about fixed annuities. M a k e f i n a n c i a l c h o i c e s Based on knowledge

Learning about fixed annuities. M a k e f i n a n c i a l c h o i c e s Based on knowledge Learning about fixed annuities M a k e f i n a n c i a l c h o i c e s Based on knowledge Not FDIC-insured May lose value Not a deposit No bank guarantee Not insured by any federal government agency 2

More information

Explorer. Client Guide. A Deferred Fixed Annuity for a Confident Retirement 60002-11A 9/11

Explorer. Client Guide. A Deferred Fixed Annuity for a Confident Retirement 60002-11A 9/11 Explorer A Deferred Fixed Annuity for a Confident Retirement 60002-11A 9/11 Client Guide The Power to Help You Succeed Pacific Life has more than 140 years of experience, and we remain committed to providing

More information

Be prepared for whatever comes your way.

Be prepared for whatever comes your way. Fixed Annuities Your 5-minute Guide Be prepared for whatever comes your way. Prepare for the unexpected When it comes to the retirement you ve worked so hard for, you might not be willing to accept the

More information

BUYING A VARIABLE ANNUITY CONTRACT THROUGH CETERA FINANCIAL SPECIALISTS LLC

BUYING A VARIABLE ANNUITY CONTRACT THROUGH CETERA FINANCIAL SPECIALISTS LLC Cetera Financial Specialists LLC 200 N. Martingale Road Schaumburg, IL 60173-2096 BUYING A VARIABLE ANNUITY CONTRACT THROUGH CETERA FINANCIAL SPECIALISTS LLC General Considerations Before you buy any insurance

More information

Single Premium Affinity Variable Annuity

Single Premium Affinity Variable Annuity Single Premium Affinity Variable Annuity Variable Product Series Building your future with a secure partner Kansas City Life Insurance Company Single Premium Affinity Variable Annuity Features at a Glance

More information

ROTH 403(b) CONTRIBUTIONS

ROTH 403(b) CONTRIBUTIONS SAVING FOR RETIREMENT ROTH 403(b) CONTRIBUTIONS A NEW WAY TO SAVE FOR RETIREMENT TIAA-CREF: FINANCIAL SERVICES FOR THE GREATER GOOD TIAA-CREF is dedicated to serving the retirement needs of those in the

More information

Create your plan Vanguard recommends saving 12% 15%. 7% is the average saving rate at Vanguard. Retirement income calculator How much income will you need in retirement? Are you on track? Compare

More information

IRA. (I m Ready to Act)

IRA. (I m Ready to Act) IRA (I m Ready to Act) bravo! You ve reached the next stage in preparing for retirement. First stage: accumulating money for the future You ve taken the first steps toward a fulfilling and financially

More information

The Individual Annuity

The Individual Annuity The Individual Annuity a resource in your retirement an age of Decision Retirement today requires more planning than for previous generations. Americans are living longer many will live 20 to 30 years

More information

Guide to buying annuities

Guide to buying annuities Guide to buying annuities Summary of the key points contained in this disclosure document Before you purchase your annuity contract, make sure that you read and understand this guide. While reading this

More information

Understanding annuities

Understanding annuities Wealth Management Americas Understanding annuities Rethinking the role they play in retirement income planning Helping to protect your retirement income security from life s uncertainties. The retirement

More information

Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts

Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts Chapter 19 Retirement Products: Annuities and Individual Retirement Accounts Overview Thus far we have examined life insurance in great detail. Life insurance companies also market a product that addresses

More information

Variable Annuities. Information is an investor s best tool. What You Should Know WHAT YOU SHOULD KNOW 1

Variable Annuities. Information is an investor s best tool. What You Should Know WHAT YOU SHOULD KNOW 1 Variable Annuities What You Should Know Information is an investor s best tool WHAT YOU SHOULD KNOW 1 2 VARIABLE ANNUITIES Variable Annuities Variable annuities have become a part of the retirement and

More information

Fixed Deferred Annuities

Fixed Deferred Annuities Buyer s Guide to: Fixed Deferred Annuities National Association of Insurance Commissioners 2301 McGee St Suite 800 Kansas City, MO 64108-2604 (816) 842-3600 1999, 2007 National Association of Insurance

More information