PLAN FIRST: Making the Best Decision about Pension Offers. Annexus. All Rights Reserved.

Size: px
Start display at page:

Download "PLAN FIRST: Making the Best Decision about Pension Offers. Annexus. All Rights Reserved."

Transcription

1 PLAN FIRST: Making the Best Decision about Pension Offers Annexus. All Rights Reserved.

2 PLAN FIRST: Making the Best Decision about Pension Offers I. Providing a Better Plan for Your Pensions Why You Need to Plan Before Accepting a Pension Offer Thousands of Americans are facing a decision that will impact the rest of their lives after work: whether to accept a lump sum payment of their pension or elect for monthly payments. Unfortunately, many of them will make the wrong decision and negatively impact their retirement future because of poor planning or no planning at all. Even more alarming is the fact that many advisors lack the information and the tools to help them make such a critical and timesensitive decision. This compact guidebook, Plan First: Making the Best Decision about Pension Offers, is intended to be used with your advisor as an essential financial planning tool to help you assess your needs and desires for life after work, calculate foreseeable and unforeseeable costs, better understand the options available through the pension offer and, ultimately, help you choose which option best suits your circumstances. Although this guide can be useful to assist with retirement financial planning that pertains to pension offers, this material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for accounting, legal, tax or investment advice. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.* The Options in a Nutshell Large companies offering traditional pension plans are at a crossroads today. Many of them are facing the prospect of not being able to deliver future retirement benefits to their employees because of a deficit in pension plan assets. In an effort to lighten hefty balance sheets and reduce the likelihood of future unfunded pension liability, they are now offering employees like you an alternative to traditional lifetime annuitized payments: a one-time lump sum benefit payment. At first glance, the lump sum option may seem like a tempting offer and a win-win situation for everyone. 2

3 Annexus You receive your well-earned benefits and don t have to speculate about whether your pension funds will be forthcoming from the company (especially given the volatility of the economy), and the company is able to reduce plan assets and adjust the balance sheet deficit. The company further benefits because the more lump sum payments made, the more likely they will receive a favorable interest rate assumption (which is a forecasted estimate) and a generous extension to remedy the unfunded pension liability (as opposed to facing sanctions and other expensive punitive measures for having an unfunded pension plan). You may also elect to take your lump sum benefit and purchase an annuity with a guaranteed lifetime income rider. The other option includes selecting a monthly distribution plan to secure an income stream in retirement and diminish the chance of outspending your nest egg. According to a 2011 AON/Hewitt human resources survey of 500 large U.S. employers, 16 percent offered their employees an in-plan retirement income solution versus the lump sum option. Another 22 percent indicated that they planned to offer this option in These retirement income streams or distributions can come from income annuities purchased for you by the company. You may also choose to take the lump sum and purchase one of several types of income annuities such as a deferred annuity, immediate annuity or fixed indexed annuity with guaranteed lifetime income riders. Deferred annuities begin distributions after a designated date in the future, whereas immediate annuities are set up to start distributing income almost immediately after purchase. Annuities with guaranteed lifetime income riders can provide the best features of both lump sum and annuitized monthly options by offering accessibility to cash for contingencies, guaranteed lifetime income, accumulation growth, inflation-indexed income, joint survivorship with 100% remainder to surviving spouse and a lasting legacy for beneficiaries. Many plans offer joint and survivor spouse options that allow for the surviving spouse to receive a portion of the benefit remainder. This also applies to both the deferred and immediate annuity. However, very few offer a joint and 100% survivor option (where the surviving spouse receives 100% of the benefit remainder). In most cases, this means a surviving spouse will see their pension income drop and their Social Security income drop upon the demise of the first spouse. However, an annuity with a guaranteed lifetime income rider is designed to offset any such decreases. This is why careful consideration must be given to everyone s unique circumstances especially yours. This is a decision that should not be made at first glance or put off until the last minute. Both the lump sum and the annuitized option come with their own risks and advantages. Without professional insight and informed planning, the longterm consequences from making the wrong decision could have a devastating impact on your future. Although IRS regulations require the disclosure of relative values expressed in either percentages, monthly amounts or lump sum to help you with comparing the settlement options, these relative values can oftentimes be difficult to understand even when accompanied with written explanations. With the assistance of a financial advisor and a licensed tax or legal professional, those considering pension offers should carefully review the various factors that should be discussed, assessed and calculated before choosing a settlement option. Your financial advisor acts as your personal quarterback to help you navigate the field of retirement planning and works with other players (such as tax and legal professionals) to strategize the best plays for your retirement Hot Topics in Retirement, AON/Hewitt HR Survey Highlights, Oct. 2011, p. 4. 3

4 PLAN FIRST: Making the Best Decision about Pension Offers The most important factors that will help formulate a winning strategy for choosing the best option for your retirement include: Health and life expectancy issues. Perhaps the most important factor that has to be considered and weighed is longevity or life expectancy. Life expectancy is the age at which half the population has survived and half is deceased. The longer your life expectancy, the greater the value needed for lifetime income. A longer life expectancy also increases exposure to the effects of inflation and the likelihood for need of additional cash sums. If you re in poor health, then you re probably better off with the lump sum (although there is no certainty that today s health issues will translate into shortened life expectancy). Conversely, if you re in good health, you re probably better off choosing a life annuity for sustained income. According to actuarial longevity tables, women live longer than men on average. Family and medical history should also be factored in order to assess your longevity. Taxes. Monthly income is taxable period. The lump sum will eventually be taxed, unless it s left to charity. Distributions from the lump sum can be more flexibly managed to address things like bracket topping (determining how much of income from the lump sum will be placed in your tax bracket to top it off), taxable Social Security and deductible medical expenses. Age. There may be supplements to the pension s lifetime income payments based on age. These typically coordinate with Social Security and may decrease as you age. Risk Tolerance. Usually, there s no cost-of-living adjustment (COLA) to the monthly income options without additional riders. This can expose you to inflation risk. Fixed monthly income can also limit liquidity, that means you may not have another opportunity to withdraw a lump sum of cash. With the lump sum option, there is also the increased risk of loss of principal, as well as overspending or outliving your assets. Estate Planning/Legacy. Lifetime annuitized income ceases at death, whereas a retirement option like an IRA or an annuity with guaranteed lifetime income benefits can be left to your beneficiaries. Income Flexibility. You may have other sources of income and may not require the immediate income offered by your company pension. With this flexibility you have more options. One option is choosing an IRA rollover and letting it accumulate until needed. Another option is selecting an employer-provided lifetime monthly income from an income annuity. Usually, the purchase of these income annuities are made by the employer according to the income annuity that offers the highest income rate. An income annuity differs from a fixed indexed annuity with a lifetime income rider in that the income annuity converts 100% of the lump sum into income. This means there will be no option for legacy remainder and no access to additional cash needed for contingencies such as long-term care expenses. As mentioned previously, a third option available to you includes a structured lifetime income plan with the purchase of an indexed annuity with a lifetime income rider that is less restrictive. This option provides lifetime income through a Guaranteed Lifetime Withdrawal Benefit (GLWB) or Guaranteed Minimum Withdrawal Benefit (GMWB), inflation protection, liquidity and legacy benefits. However, if cash is needed for college expenses, parental long-term care or other expenses, then the lump sum option placed in an annuity with income rider may be more suitable for your needs. 4

5 Annexus II. Anatomy of the Offer Analyzing Your Offer and How it will Affect Your Retirement Lifestyle Name: Spouse: Address: City, State, Zip Code: Employer: What is your gender? What is your age now? What is the relative health of the retiree? a. Excellent health, longevity in family. Question Retiree Spouse b. Good health, no serious health conditions, normal height/weight. c. Average-to-fair health, meds, height/weight abnormal. d. Poor health, prior or current medical conditions. What about family history (i.e. health, longevity)? How long will you live? The Offer Elements What is your offer commencement date/date of your retirement? Lump Sum Benefit: What is the Lump Sum Amount $ 5

6 PLAN FIRST: Making the Best Decision about Pension Offers Monthly Pension Benefit: Monthly Amount (pre-age 62, including supplements) $ Amount to Employee Amount to Spouse Option 1 % Joint and Survivor $ $ Option 2 (Single Life) $ $ Option 3 % Joint and Survivor $ $ Option 4 % Joint and Survivor $ $ Monthly Amount (post-age 62) $ Amount to Employee Amount to Spouse Option 1 % Joint and Survivor $ $ Option 2 (Single Life) $ $ Option 3 % Joint and Survivor $ $ Option 4 % Joint and Survivor $ $ How will your retiree health coverage be affected? What is the election date? What is the relative value? $ Advisor Note: The relative value amount may be expressed as a percentage, monthly amount or lump sum figure. Make sure when discussing with the client, that you also have a copy of the offer for better accuracy. Assessing How this Pension Offer Fits into Your Retirement Life Plans What are your planned expenses? Now $ After demise of first spouse ( if applicable) $ Average Expenses over the Years Item All Consumer Units Years 65 Years and Older Years 75 Years and Older Average annual expenditures $48,109 $50,900 $36,802 $41,434 $31,529 Food $6,129 $6,068 $4,558 $5,148 $3,873 Housing $16,557 $16,673 $13,015 $14,420 $11,421 Utilities, fuels, public services $3,660 $3,979 $3,402 $3,644 $3,130 Transportation $7,677 $8,111 $5,242 $6,086 $4,288 Health care $3,157 $3,859 $4,843 $4,922 $4,754 Entertainment $2,504 $2,683 $1,891 $2,341 $1,374 6 Source: U.S. Department of Labor, Bureau of Labor Statistics

7 Annexus Inflation s Impact on the Cost of Living over the Years $80,000 $76,909 $70,000 $60,000 $50,000 $48,109 $53,103 $60,081 $67,976 Inflated Value $40,000 $30,000 $48,109 $20,000 $10,000 $0 1 Year 5 Years 10 Years 15 Years 20 Years Source: Annexus What are your other sources and amounts of income (excluding pension)? a. Spouse s pension b. Retiree Social Security c. Spouse s Social Security d. Investment income (non IRAs) e. Rents, jobs, other f. Value of other investable assets (e.g. trusts, brokerage accounts, IRAs) What are your sources and amounts of income after first spouse s demise? What are the income gaps? Can the monthly pension fill the gaps? What about non-level or contingent expenses? What about long-term health care expenses? 7

8 PLAN FIRST: Making the Best Decision about Pension Offers Which statement most effectively sums up your/spouse s wishes regarding a legacy? a. I need to take care of myself (or my spouse and I) only; Question Retiree Spouse b. I would like to leave whatever I (or my spouse and I) don t use up to heirs; c. I want to live off the interest and leave the principal and growth to heirs; d. It is very important to me to leave a legacy to heirs. Which statement most effectively sums up your/spouse s view on flexibility of withdrawals? a. I want my retirement income to be certain; b. I want some of my retirement income to be certain, but would like some flexible income I can adapt to my needs; c. I am comfortable with my other sources of retirement income, like my spouse s pension and social security; d. I want control over my assets and income flow as much as possible. Which statement accurately reflects your/spouses s attitude about inflation? a. I am not concerned about inflation: I want safety of principal; b. I am somewhat concerned about inflation, but I am more concerned about safety of principal; c. Inflation will be a modest problem in the future; d. I am concerned about inflation and its detrimental effect on my retirement. 8

9 Annexus III. Making Your Choice Are you in poor health or do you have a terminal disease? Are you in relative good health with a family history of longevity? Do you want to leave a Do you want to leave legacy to beneficiaries? legacy to beneficiaries? Have you successfully invested substantial amounts of money independently before? Do you want to guarantee the remainder amount goes to your surviving spouse or other beneficiary? Are you disciplined with your spending budgets? Do you have a tendency to overspend your budgets? Will this be your primary income stream? Are you a single retiree? Do you want quick access to cash for contingencies? Do you want quick access to cash for contingencies? Do you want guaranteed lifetime income? Do you want guaranteed Do lifetime you want income? monthly income with inflation indexing to protect against future increases Do you in want the CPI? monthly income with inflation indexing to protect against Do future you want increases confinement the CPI? benefits? Will you have other sources of income during retirement? Do you want to guarantee the remainder goes to your surviving spouse or other beneficiary? Do you want joint Do you want joint survivorship so that 100% survivorship so that 100% of the remainder goes to of the remainder goes to your surviving spouse? your surviving spouse? If yes to the above, then Lump Sum is your best choice. If yes to the above, then Monthly Income is your best choice. If yes to the above, then Indexed Annuity with a Lifetime Income Rider is your best choice. * This guidebook is meant to provide general information and is not meant to be a substitute for you and your client s own local legal counsel or advice from a licensed tax professional. Annexus shall have no liability or responsibility for any person or entity with respect to the implementation or use of any information provided in this guidebook. We encourage all recipients of this guidebook to work closely with their own legal and tax counsel before implementing any plan, concept, idea, strategy, tactic or suggestion that may be directly or indirectly obtained from this guidebook. 9

10 Annexus. All Rights Reserved. Annexus has produced the most revolutionary retirement income solutions available to consumers. Annexus currently leads the industry with the highest number of product innovations benefitted by ten patents issued with twelve pending. It anchors the largest distribution network in the country comprised of the best and the brightest in the financial services industry including independent marketing organizations and elite advisors that provide wealth management, client management and practice management services.

What to Consider When Faced With the Pension Election Decision

What to Consider When Faced With the Pension Election Decision PENSION ELECTION Key Information About Your Pension (Optional Forms of Benefits) Pension Math and Factors to Consider Pension Maximization What Happens if Your Company Files for Bankruptcy and Your Company

More information

Learning Objectives 26. What Is Insurance? 3. Coverage Concepts 8. Types of Insurance 10. Types of Insurers 11. Introduction 26

Learning Objectives 26. What Is Insurance? 3. Coverage Concepts 8. Types of Insurance 10. Types of Insurers 11. Introduction 26 Contents u n i t 1 Introduction to Insurance 1 Introduction 2 Learning Objectives 2 What Is Insurance? 3 Risk 4 Coverage Concepts 8 Types of Insurance 10 Types of Insurers 11 Domicile and Authorization

More information

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

Immediate 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 Immediate Annuities Page 1 of 7, see disclaimer on final page Immediate Annuities What is an immediate annuity?

More information

Annuity Principles and Concepts Session Five Lesson Two. Annuity (Benefit) Payment Options

Annuity Principles and Concepts Session Five Lesson Two. Annuity (Benefit) Payment Options Annuity Principles and Concepts Session Five Lesson Two Annuity (Benefit) Payment Options Life Contingency Options - How Income Payments Can Be Made To The Annuitant. Pure Life versus Life with Guaranteed

More information

Palladium Single Premium Immediate Annuity With

Palladium Single Premium Immediate Annuity With Palladium Single Premium Immediate Annuity With Cost Of Living Adjustment Income For Now... Guaranteed Income For Life! A Single Premium Immediate Annuity Issued By Income for Your Needs Now and in the

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

Design your own retirement

Design your own retirement Design your own retirement Lincoln Deferred Income Solutions SM Annuity Products issued by: The Lincoln National Life Insurance Company Not a deposit Not FDIC-insured May go down in value Not insured by

More information

Retirement Income Investment Strategy by Andrew J. Krosnowski

Retirement Income Investment Strategy by Andrew J. Krosnowski Retirement Income Investment Strategy by Andrew J. Krosnowski Step 1- Income Needs-When formulating a successful strategy to generate income during retirement we feel that it is important to start by identifying

More information

Payouts. Protection. In One Place.

Payouts. Protection. In One Place. Payouts. Protection. In One Place. ING Single Premium Immediate Annuity issued by ING USA Annuity and Life Insurance Company Your future. Made easier. Payouts. Protection. In today s financial world, some

More information

RETIREMENT ACCOUNTS. Alternative Retirement Financial Plans and Their Features

RETIREMENT ACCOUNTS. Alternative Retirement Financial Plans and Their Features RETIREMENT ACCOUNTS The various retirement investment accounts discussed in this document all offer the potential for healthy longterm returns with substantial tax advantages that will typically have the

More information

Payouts. Protection. In One Place.

Payouts. Protection. In One Place. Payouts. Protection. In One Place. ING Single Premium Immediate Annuity ANNUITIES Your future. Made easier. Payouts. Protection. In today s financial world, some products provide payout options. Others

More information

Voya Single Premium Immediate Annuity

Voya Single Premium Immediate Annuity Voya Single Premium Immediate Annuity issued by Voya Insurance and Annuity Company Payouts. Protection. In One Place. Payouts. Protection. In One Place. In today s financial world, some products provide

More information

Understanding annuities

Understanding annuities ab Wealth Management Americas Understanding annuities Rethinking the role they play in retirement income planning Protecting your retirement income security from life s uncertainties. The retirement landscape

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

Your Guide to Fixed Annuities

Your Guide to Fixed Annuities Your Guide to Fixed Annuities A Smart Choice for Safety Conscious Individuals Seeking Financial Security Protect Your Future Whether you re preparing for retirement or already enjoying retirement, a fixed

More information

A GUIDE TO INVESTING IN ANNUITIES

A GUIDE TO INVESTING IN ANNUITIES A GUIDE TO INVESTING IN ANNUITIES What Benefits Do Annuities Offer in Planning for Retirement? Oppenheimer Life Agency, Ltd. Oppenheimer Life Agency, Ltd., a wholly owned subsidiary of Oppenheimer & Co.

More information

Voya Single Premium Immediate Annuity

Voya Single Premium Immediate Annuity Voya Single Premium Immediate Annuity issued by Voya Insurance and Annuity Company Payouts. Protection. In One Place. Payouts. Protection. In One Place. In today s financial world, some products provide

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

FG Immediate-Income. Single Premium Immediate Annuity. ADV 1011 (01-2011) Fidelity & Guaranty Life Insurance Company Rev.

FG Immediate-Income. Single Premium Immediate Annuity. ADV 1011 (01-2011) Fidelity & Guaranty Life Insurance Company Rev. Single Premium Immediate Annuity ADV 1011 (01-2011) Fidelity & Guaranty Life Insurance Company Rev. 07-2014 12-715 Single Premium Immediate Annuity Americans are living longer than ever before. Source:

More information

The Hartford Income Security SM

The Hartford Income Security SM The Hartford Income Security SM A Fixed Deferred Payout Annuity Prepare To Live SM For Use In All States, Except Florida Start Building Your Future Income Today There s never been a better time to begin

More information

How Will I Get Income from My Annuity?

How Will I Get Income from My Annuity? FACTS ABOUT ANNUITIES How Will I Get Income from My Annuity? JUNE 2014 Annuity product innovations offer a variety of ways to receive guaranteed income, including through withdrawal benefits, income riders

More information

Palladium. Immediate Annuity - NY. Income For Now... Income For Life! A Single Premium Immediate Fixed Annuity Product of

Palladium. Immediate Annuity - NY. Income For Now... Income For Life! A Single Premium Immediate Fixed Annuity Product of Palladium Immediate Annuity - NY Income For Now... Income For Life! A Single Premium Immediate Fixed Annuity Product of Income A Guaranteed Income for as Long as You Need It One of the major fears we face

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

Caution: Withdrawals made prior to age 59 ½ may be subject to a 10 percent federal penalty tax.

Caution: Withdrawals made prior to age 59 ½ may be subject to a 10 percent federal penalty tax. Annuity Distributions What are annuity distributions? How are annuity distributions made? How are your annuity payouts computed if you elect to annuitize? Who are the parties to an annuity contract? How

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

MassMutual Single Premium Immediate Annuity

MassMutual Single Premium Immediate Annuity ANNUITIES MassMutual Single Premium Immediate Annuity Retirement Can Be An Exciting Journey INVEST INSURE RETIRE Peter and Gail Doherty will celebrate their 40th wedding anniversary later this year. When

More information

Prepared For: The Client Family

Prepared For: The Client Family Annuity Maximization Estate Planning and Deferred Annuities - Annuitization Prepared For: The Client Family Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA and

More information

Secure. Income SM. Pacific. Client Guide. A Fixed, Deferred Income Annuity for a Confident Retirement 4/15 97001-15A

Secure. Income SM. Pacific. Client Guide. A Fixed, Deferred Income Annuity for a Confident Retirement 4/15 97001-15A Secure Pacific Income SM A Fixed, Deferred Income Annuity for a Confident Retirement 4/15 97001-15A Client Guide Why Pacific Life Pacific Life has more than 145 years of experience, and we remain committed

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

BalancedAllocation LIFETIME INCOME RIDER THE INCOME RIDER AS UNIQUE AS YOU.

BalancedAllocation LIFETIME INCOME RIDER THE INCOME RIDER AS UNIQUE AS YOU. BalancedAllocation LIFETIME INCOME RIDER THE INCOME RIDER AS UNIQUE AS YOU. Why stop when it comes to planning your retirement income? A retirement plan isn t just about that moment when you retire, but

More information

Using Life Insurance for Pension Maximization

Using Life Insurance for Pension Maximization Using Life Insurance for Pension Maximization Help your clients capitalize on their pension plans Agent Guide For agent use only. Not to be used for consumer solicitation purposes. Help Your Clients Obtain

More information

TREASURY FACT SHEET: HELPING AMERICAN FAMILIES ACHIEVE RETIREMENT SECURITY BY EXPANDING LIFETIME INCOME CHOICES

TREASURY FACT SHEET: HELPING AMERICAN FAMILIES ACHIEVE RETIREMENT SECURITY BY EXPANDING LIFETIME INCOME CHOICES TREASURY FACT SHEET: HELPING AMERICAN FAMILIES ACHIEVE RETIREMENT SECURITY BY EXPANDING LIFETIME INCOME CHOICES In September 2009, President Obama announced several new steps to make it easier for American

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

Maximizing your Pension with Life Insurance

Maximizing your Pension with Life Insurance American Brokerage Services, Inc. 805 E Willow Grove Ave. Suite 2-B Wyndmoor, PA 1-888-227-3131 500 annuities1@absgo.com www.absgo.com Maximizing your Pension with Life Insurance Page 2 of 6 Maximizing

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

G U A R A N T E E D I N C O M E S O L U T I O N S NEW YORK LIFE LIFETIME INCOME ANNUITY

G U A R A N T E E D I N C O M E S O L U T I O N S NEW YORK LIFE LIFETIME INCOME ANNUITY G U A R A N T E E D I N C O M E S O L U T I O N S NEW YORK LIFE LIFETIME INCOME ANNUITY NEW YORK LIFE: BUILT FOR TIMES LIKE THESE New York Life Insurance Company, the parent company of New York Life Insurance

More information

CONSIDERING A PENSION PAYOUT

CONSIDERING A PENSION PAYOUT CONSIDERING A PENSION PAYOUT Seven decision factors to help you determine whether to continue pension benefits or take a lump sum payout. 180k 160 140 120 100 80 60 40 20 0 1990 1995 2000 1985 2005 KEY

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

I need a financial plan for life after DROP

I need a financial plan for life after DROP deferred retirement option program (DROP) for the IBC model plan program I need a financial plan for life after DROP AXA Equitable is proud to support the IBC s Florida Education Initiative www.themodelplan.com

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

Guggenheim Life and Annuity Company. Provider Single Premium Immediate Annuity Product

Guggenheim Life and Annuity Company. Provider Single Premium Immediate Annuity Product Guggenheim Life and Annuity Company Provider Single Premium Immediate Annuity Product Reaching retirement is an achievement. But once you re there, will you have a regular, steady income that will last

More information

Payment Options. Retirement Benefit

Payment Options. Retirement Benefit Payment Options Retirement Benefit Table of contents Choosing your benefit payment option... 2 Life Annuities... 5 Fixed Period Benefit... 7 Installment Benefit... 8 Combination of Benefits... 10 Single

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

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

THE CINCINNATI LIFE INSURANCE COMPANY. Annuity Product Training

THE CINCINNATI LIFE INSURANCE COMPANY. Annuity Product Training THE CINCINNATI LIFE INSURANCE COMPANY Annuity Product Training I) Definitions a. Single Premium Deferred Annuity (SPDA) an annuity contract purchased with a single premium payment, periodic income payments

More information

Maximizing Your Pension with Life Insurance

Maximizing Your Pension with Life Insurance Maximizing Your Pension with Life Insurance Introduction If you participate in a traditional pension plan (known as a defined benefit plan) with your employer, you may receive monthly benefits from the

More information

Steadily growing, safe and secure. Financial values your future can count on.

Steadily growing, safe and secure. Financial values your future can count on. Steadily growing, safe and secure. Financial values your future can count on. Retirement: built by you, grown by you 2 enjoyed by you. Let s not pretend that your retirement will be like anyone else s.

More information

2. The following is substituted for the answer to the question How do I apply for a loan? in the Section entitled Loans:

2. The following is substituted for the answer to the question How do I apply for a loan? in the Section entitled Loans: TO OUR EMPLOYEES: We wish to announce that the Mission Health System Employee Retirement Plan ( Plan ) has been amended, effective June 1, 2015, to change the automatic form of benefit. Therefore, in order

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

BENEFIT DISTRIBUTION REQUEST FORM (For Distributions due to Termination, Death, Disability, and Retirement) Date: EIN: 16-6184130 TIN: 611256314

BENEFIT DISTRIBUTION REQUEST FORM (For Distributions due to Termination, Death, Disability, and Retirement) Date: EIN: 16-6184130 TIN: 611256314 BENEFIT DISTRIBUTION REQUEST FORM (For Distributions due to Termination, Death, Disability, and Retirement) : EIN: 16-6184130 TIN: 611256314 Plan Name: UFCW LOCAL ONE 401(K) SAVINGS PLAN Participant Data

More information

Understanding DROP. Deferred Retirement Option Program. Overview

Understanding DROP. Deferred Retirement Option Program. Overview Understanding DROP Deferred Retirement Option Program Fairfax County Retirement Systems 2015 PLEASE NOTE: The provisions referenced in this slide presentation are relevant for employees who were Fairfax

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

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

Cash Flow and Asset Analysis

Cash Flow and Asset Analysis Jim and Sally Sample for: Jim and Sally Sample 04/21/2015 $1,600,000 Assets + Estimated Entry Fee Refund $1,200,000 $800,000 $400,000 $0 1 2 3 4 5 6 7 8 9 10 11 Total assets at the end of each year Estimated

More information

TESTIMONY BEFORE THE ERISA ADVISORY COUNCIL WORKING GROUP ON RETIREMENT PLAN DISTRIBUTIONS AND OPTIONS

TESTIMONY BEFORE THE ERISA ADVISORY COUNCIL WORKING GROUP ON RETIREMENT PLAN DISTRIBUTIONS AND OPTIONS TESTIMONY BEFORE THE ERISA ADVISORY COUNCIL WORKING GROUP ON RETIREMENT PLAN DISTRIBUTIONS AND OPTIONS David L. Wray President Profit Sharing / 401k Council of America July 8, 2005 The Profit Sharing/401k

More information

The Individual Annuity

The Individual Annuity The Individual Annuity a re s o u rc e i n yo u r r e t i r e m e n t an age of Decision Retirement today requires more planning than for previous generations. Americans are living longer many will live

More information

IRS Issues Proposed Regulations and New Guidance Regarding Lifetime Income Payments Under Retirement Plans

IRS Issues Proposed Regulations and New Guidance Regarding Lifetime Income Payments Under Retirement Plans IRS Issues Proposed Regulations and New Guidance Regarding Lifetime Income Payments Under Retirement Plans The Treasury and IRS released proposed regulations and guidance that would make it easier for

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

For some reason, a majority of individuals

For some reason, a majority of individuals Life & Health Insurance Advisor info@mmibi.com momentousins.com Your future Our commitment Long-Term Care December 2010 Volume 8 Number 12 How to Get Long-Term Care Coverage Without Buying an LTC Policy

More information

STATEMENT FOR THE RECORD FROM THE AMERICAN COUNCIL OF LIFE INSURERS BEFORE THE 2012 ERISA ADVISORY COUNCIL

STATEMENT FOR THE RECORD FROM THE AMERICAN COUNCIL OF LIFE INSURERS BEFORE THE 2012 ERISA ADVISORY COUNCIL STATEMENT FOR THE RECORD FROM THE AMERICAN COUNCIL OF LIFE INSURERS BEFORE THE 2012 ERISA ADVISORY COUNCIL EXAMINING INCOME REPLACEMENT DURING RETIREMENT IN A DEFINED CONTRIBUTION PLAN SYSTEM WEDNESDAY

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

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

Key to retiring with sufficient lifetime income is making good financial choices.

Key to retiring with sufficient lifetime income is making good financial choices. American Academy of Actuaries OCTOBER 2015 PLANNING THE RETIREMENT JOURNEY 1. When to retire 2. When to claim Social Security benefits 3. Planning for an unknown length of retirement 4. How much retirement

More information

Income for Life Annuity Program* Immediate Annuities for Retirement Income

Income for Life Annuity Program* Immediate Annuities for Retirement Income Income for Life Annuity Program* Immediate Annuities for Retirement Income *ICMA-RC partners with select insurance companies that make annuities available through the Income for Life Annuity program. Participating

More information

Summary of Final QLAC Regulations. Prepared by Davis & Harman LLP, the SPARK Institute s outside counsel.

Summary of Final QLAC Regulations. Prepared by Davis & Harman LLP, the SPARK Institute s outside counsel. July 2, 2014 Summary of Final QLAC Regulations Prepared by Davis & Harman LLP, the SPARK Institute s outside counsel. On July 1, 2014, the IRS and Treasury Department released final regulations on the

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

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

Choose a new path for your retirement future.

Choose a new path for your retirement future. Choose a new path for your retirement future. Nationwide New Heights Fixed Indexed Annuity Guarantees and protections are subject to the claims-paying ability of Nationwide Life and Annuity Insurance Company.

More information

Rules for Taking Distributions from Tax-Deferred Retirement Savings Plans

Rules for Taking Distributions from Tax-Deferred Retirement Savings Plans Rules for Taking Distributions from Tax-Deferred Retirement Savings Plans Putting money into an employer s retirement plan or IRA is just the first step toward financial security in retirement. How you

More information

Comparison of IRA vs. Roth IRA For: Charles and Amanda Fuller

Comparison of IRA vs. Roth IRA For: Charles and Amanda Fuller Comparison of IRA vs. Roth IRA For: Charles and Amanda Fuller Presented By: [Licensed user's name appears here] Comparison of IRA vs. Roth IRA Table of Contents IRA vs. Roth IRA Page 1 An Individual Retirement

More information

Stretch Your Net Worth Take Care of Your Family Take Care of Yourself. The Stretch IRA Concept. from American National Insurance Company

Stretch Your Net Worth Take Care of Your Family Take Care of Yourself. The Stretch IRA Concept. from American National Insurance Company Stretch Your Net Worth Take Care of Your Family Take Care of Yourself The Stretch IRA Concept from American National Insurance Company Stretch Your Net Worth Take Care of Your Family Take Care of Yourself

More information

Member s Guide to: DROP. Deferred Retirement Option Plan. www.op-f.org

Member s Guide to: DROP. Deferred Retirement Option Plan. www.op-f.org Member s Guide to: DROP Deferred Retirement Option Plan www.op-f.org PLAN DEFERRED RETIREMENT DROP The Deferred Retirement Option Plan (DROP) is an optional benefit that allows eligible police officers

More information

The Best of America America s INCOME Annuity

The Best of America America s INCOME Annuity The Best of America America s INCOME Annuity PLAN FOR YOUR RETIREMENT YEARS WITH CONFIDENCE. To help prepare for retirement, consider complementing your retirement plan with The Best of America America

More information

Immediate Annuity. Move confidently into the future. 10000256 Rev 0413

Immediate Annuity. Move confidently into the future. 10000256 Rev 0413 MEMBERS Single Premium Immediate Annuity GUARANTEED retirement income Move confidently into the future 10000256 Rev 0413 A financial services company serving financial institutions and their clients worldwide.

More information

PARTICIPANT COMMUNICATIONS MATERIALS

PARTICIPANT COMMUNICATIONS MATERIALS May 28, 2015 Testimony of Craig Rosenthal on behalf of the American Benefits Council Before the ERISA Advisory Council on Model Notices and Disclosures for Pension Risk Transfers My name is Craig Rosenthal

More information

Participant Distributions

Participant Distributions City of Los Angeles Deferred Compensation Plan Participant Distributions considering your options living your dreams Severance of Employment Table of Contents Introduction... 1 What Are My Choices?...

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

Find out more a http://legacy.retirevillage.com 2015 Annuity.com. All rights reserved. This guide is copyrighted. It may not be reproduced without

Find out more a http://legacy.retirevillage.com 2015 Annuity.com. All rights reserved. This guide is copyrighted. It may not be reproduced without 1 Presented by: Shawn Hogan Legacy Insurance & Financial Group http://legacy.retirevillage.com An Insider s Guide to Annuities Plus Secrets the Insurance Companies don t want you to know! Whatever your

More information

Annuities. Fixed Annuity: An annuity which the amount paid out is fixed sum and is usually guaranteed.

Annuities. Fixed Annuity: An annuity which the amount paid out is fixed sum and is usually guaranteed. Annuities Fixed Annuity: An annuity which the amount paid out is fixed sum and is usually guaranteed. Loads: The fees or charges paid when you purchase an annuity. Includes sales commissions. Author: Douglas

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

The Broker s Sales Guide to an Individual Fixed Annuity from The Standard

The Broker s Sales Guide to an Individual Fixed Annuity from The Standard Tailored Income Annuity The Broker s Sales Guide to an Individual Fixed Annuity from The Standard With a Tailored Income Annuity you ll find a retirement income to suit your needs. standard insurance company

More information

Getting Ready to Retire: What You Need to Know About Annuities. Table of Contents

Getting Ready to Retire: What You Need to Know About Annuities. Table of Contents Getting Ready to Retire: What You Need to Know About Annuities Table of Contents A. Planning Your Retirement Income ------------------------------------------------------------------------------------------------------

More information

Earning Cash Balance Pay Credits

Earning Cash Balance Pay Credits You Have a Choice New Cash Balance Pension You Have a Choice The important thing to understand is this: If you were hired through December 31, 2012 you don t have to change to the new cash balance pension

More information

Retirement: Time to Enjoy Your Rewards

Retirement: Time to Enjoy Your Rewards Retirement: Time to Enjoy Your Rewards New York Life Guaranteed Lifetime Income Annuity The Company You Keep Some people generate retirement income by withdrawing money from their savings as they need

More information

Excerpts from IRI Annuity Fact Book Variable Annuity 101 An annuity is often viewed as life insurance in reverse. Whereas life insurance protects an individual against premature death, an annuity protects

More information

FINANCIAL ANALYSIS ****** UPDATED FOR 55% BENEFIT ****** ****** FOR ALL SURVIVORS ******

FINANCIAL ANALYSIS ****** UPDATED FOR 55% BENEFIT ****** ****** FOR ALL SURVIVORS ****** FINANCIAL ANALYSIS ****** UPDATED FOR 55% BENEFIT ****** ****** FOR ALL SURVIVORS ****** This fact sheet is designed to supplement the Department of Defense brochure: SBP SURVIVOR BENEFIT PLAN FOR THE

More information

IRA Maximization. Wealth transfer strategies to enhance your legacy CLC.1124 (05.14)

IRA Maximization. Wealth transfer strategies to enhance your legacy CLC.1124 (05.14) Maximization Wealth transfer strategies to enhance your legacy CLC.1124 (05.14) Congratulations! For many years you ve put in the hard work planning, saving and investing for retirement. With all of that

More information

Flexible Premium Deferred Annuity Handbook. Concepts and Definitions

Flexible Premium Deferred Annuity Handbook. Concepts and Definitions Flexible Premium Deferred Annuity Handbook Contents Overview of Annuities 3 Definition of Flexible Premium Deferred Annuity (FPDA) 4 What is the Difference Between a Qualified and Nonqualified Annuity?

More information

All about Annuities. What annuity products are available from Irish Life? What is an annuity?

All about Annuities. What annuity products are available from Irish Life? What is an annuity? All about Annuities Irish Life appreciates that you have worked hard to save for your retirement. Deciding what to do with your pension fund is one of the most important decisions you will have to make.

More information

White Paper Annuities: Guaranteed Lifetime Withdrawal Benefit

White Paper Annuities: Guaranteed Lifetime Withdrawal Benefit White Paper Annuities: Guaranteed Lifetime Withdrawal Benefit www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member

More information

ALL ABOUT ANNUITIES JUNE 2015 WHAT ANNUITY PRODUCTS ARE AVAILABLE FROM IRISH LIFE?

ALL ABOUT ANNUITIES JUNE 2015 WHAT ANNUITY PRODUCTS ARE AVAILABLE FROM IRISH LIFE? PENSIONS INVESTMENTS LIFE INSURANCE ALL ABOUT ANNUITIES JUNE 2015 Irish Life appreciates that you have worked hard to save for your retirement. Deciding what to do with your pension fund is one of the

More information

THE SECURITY BENEFIT FOUNDATIONS ANNUITY

THE SECURITY BENEFIT FOUNDATIONS ANNUITY THE SECURITY BENEFIT FOUNDATIONS ANNUITY The Security Benefit Foundations Annuity Retirement. It s a big step and one you ve spent your whole career saving for and building on. As you enter retirement,

More information

For advisor use only Advisor Guide

For advisor use only Advisor Guide For advisor use only Advisor Guide RBC Payout Annuities 2 RBC Payout Annuities: Advisor guide What you and your clients need to know about payout annuities In an uncertain financial world where guarantees

More information

Retirement Income Products:

Retirement Income Products: Retirement Income Products: Which One Is Right for Your Plan? Volume 4, Number 1 Introduction As 401(k) plans have evolved from a supplemental retirement or capital accumulation plan to the sole retirement

More information

Sentinel Security Life Insurance Company Product Specific Training

Sentinel Security Life Insurance Company Product Specific Training Sentinel Security Life Insurance Company Product Specific Training 1. Review the attached slideshows. 2. Send an email to licensing@sslco.com and contracting@ronrawlings.com with your name, agent number,

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

Alternative Retirement Financial Plans and Their Features

Alternative Retirement Financial Plans and Their Features RETIREMENT ACCOUNTS Gary R. Evans, 2006-2013, November 20, 2013. The various retirement investment accounts discussed in this document all offer the potential for healthy longterm returns with substantial

More information

YOUR PAYMENT OPTIONS

YOUR PAYMENT OPTIONS A Guide to YOUR PAYMENT OPTIONS Deseret Mutual Benefit Administrators FBB0140715 MASTER RETIREMENT PLAN PAYMENT OPTIONS Several payment options are available to you from your Master Retirement Plan benefit.

More information

Your Retirement Income Options. TIAA-CREF Financial Essentials

Your Retirement Income Options. TIAA-CREF Financial Essentials Your Retirement Income Options TIAA-CREF Financial Essentials Today we will discuss: 1. Determining your retirement income needs Income sources Covering your expenses 2. Threats to your retirement cash

More information