Certified financial planners | Equity Indexed Annuities | Retirement planning

Annuity Advocacy fromCertified Financial Planner™

Fiduciaries

The Institute for Retirement Planning

Find Me An Advisor™

Find Me An Advisor™ is an authority on Variable and Equity Indexed Annuities contracts as well as Successful

Retirement Income Strategies.

Unlike many life insurance only advisors that can only offer fixed life insurance products, Find Me An Advisor™ has a Series 7, 66, life and health licenses, allowing our team to represent a large mix of investment products.

Certified Financial Planner


"Based upon many years of helping retirees with retirement distribution and income maximization it is evident that Equity Index Annuities have become an

integral role of a core portfolio.”



Two Basic Components1. Your Account Value

2. Living Benefit Rider - your income is guaranteed for life

Equity Index Annuities


1. Account ValueYour Account will earn interest annually from 0% to potentially over 40%.

Your account can never lose money in the stock market.

The interest earned is dependent upon the contract and investment strategy chosen.



Your money grows based upon a variety of stock market index strategies, but you can never lose money from stock market declines.

In fact, the only way your investments can decline is if you withdraw the funds or from living benefit rider fees, if elected.

Part 1: How Your Account Grows


Contracts will earn a variable rate of return from a 0% worst case scenario to as high as the market can grow or a CAP, depending on the contract.

Strategies have a starting point value of a stock or commodity index on the contract issue date. i.e. S&P 500 3/1/2012 was1408.

At the end of one (or more) contract year an interest rate for the time period is declared and you receive your statement. i.e. S&P 500 3/1/2013 was1551.

This could equate to a 10.2% return with some strategies. (1551 \ 1408).

Part 1: How Your Money Grows


It is important to understand how interest is calculated as it can vary between contracts dramatically. Here is a short list of strategies to consider:

Fixed rate option (money market)

Annual point to point with a cap rate option (if the index earns 20% and the cap is 6%, than you earn 6%). If the number is negative, you earn 0%.

Monthly cap rate option (example: if the cap is 2 for the month, that is the most you can earn that month, conversely, there is no cap on the downside)

Monthly average option (averages the monthly index returns)

Uncapped point to point two year strategy minus a spread (earn whatever the index earns minus an annual fee)

NOTE: Review these strategies in more detail with a qualified advisor.

Part 1: Investment Choices


All annuities grow with tax deferral much like a 401(k).

Ordinary income tax is due when annuity profits are withdrawn on non qualified funds.

As always, Qualified or IRA funds are taxed at ordinary income when withdrawn.

Part 1: Annuity Taxation


One new strategy is calculated off the commodities Trader Vic Index.

This can provide your portfolio with much needed diversification.

This strategy has no cap on a 5 year, point to point option.

Historically this strategy option is averaging 8% with no market risk.

Commodities Index Strategy


Your named beneficiaries will receive your account balance remaining in the contract.

Your heirs will receive the money free from probate court hassles.

Your beneficiaries will have tax consequences that can be manipulated to their favor with proper tax planning.

Part 1: Beneficiaries


Many contracts offer an attractive 8% -10% signing bonus.

The longer the contract the higher the bonus, generally.

Some contracts take back their bonus if contracts are surrendered early.

Part 1: Signing Bonuses


"Historically, insurance companies are safer than banks and include tax deferral on

investment growth. With CD's at all time lows and Hybrid Equity Index annuities

providing signing bonuses, income for life, and stronger return potential, it is clear why the industry has grown exponentially, as of

late."



2. Living Benefit RiderGuarantees income for your life and your spouse

Your rider grows income each year you delay taking income.

Similar to Social Security, each year you delay income, your check grows.



Living Benefit riders are an optional benefit that can be elected at contract issue for a fee usually under 1%.

The rider can provide income for life, sometimes on two lives.

Each year income is delayed, the guaranteed lifetime check grows larger, like Social Security.

Part 2: Living Benefit Riders


Living Benefit riders provide income for life and a spouses life or another persons life if desired.

This can be very useful tool to protect people against running out of money.

Riders grow on a guaranteed basis so one can plan with

Part 2: Living Benefit Riders


Riders grow at a contractually guaranteed rate that cannot be changed.

The growth of this rider is then multiplied by a payout factor which is based upon your age at the time you wish to turn on lifetime income.

Part 2: Living Benefit Riders - How Income is Calculated


How Income is Calculated

Investment 7% LB Rider AgePayout Factor

Lifetime Check

Increase

US$100,000 US$100,000 Age 60 5.0% US$5,000 -

0% - ?% US$107,000 Age 61 5.1% US$5,457 9.1%

0% - ?% US$114,490 Age 62 5.2% US$5,953 9.1%

0% - ?% US$122,504 Age 63 5.3% US$6,493 9.1%

0% - ?% US$131,800 Age 64 5.4% US$7,078 9.0%

0% - ?% US$140,255 Age 65 5.5% US$7,714 9.0%

0% - ?% US$150,073 Age 66 5.6% US$8,404 8.9%

0% - ?% US$160,578 Age 67 5.7% US$9,153 8.9%

0% - ?% US$171,819 Age 68 5.8% US$9,965 8.9%


In an article written by the Wall Street Journal on March 5, 2013, professor Pfau at the American College of

Financial Services said, "There is no need for retirees to hold bonds, annuities with their promise of income for

life act like SUPER BONDS with no maturity dates.”



Living Benefit Riders can grow at simple or compound interest and should be compared between carriers by the final lifetime income check.

Do not get manipulated by high bonuses on living benefit riders, all parts of the contract must be reviewed by an experienced agent for best results.

Part 2: Comparing Riders


Sometimes just taking a regular withdrawal and letting your living benefit rider compound can be a wise move.

It is best to call your agent and review your options carefully when withdrawing money from your contract for best results.

Part 2: Maximizing Rider


Some contracts have a home health care - doubler feature which will double your income for five years - if you cannot perform 2 of 6 activities of daily living.

This feature has been attracting many seniors that do not want to pay long-term care insurance premiums.

Part 2: Home Health Care Doubler Feature


Some contracts now include a death benefit feature that grows the investment for your heirs at a guaranteed rate.

These contracts have unique benefits but need to be understood to maximize their benefits.

Death Benefit Riders


Hybrid Equity Indexed Annuities represent a solid core portfolio holding for retires in the 21st century,

providing invaluable income for life certainty and the potential to outpace some inflation while

marinating a principal balance potentially for heirs or an emergency.

Conclusion


As always, it is important to review ALL your investment options and work with fully licensed and

experienced financial professionals.

Review Your Options


If you would like to speak to our CFP™ or a member of our nationwide team please schedule your free

strategy session by calling (855) CFP-NOWW

Free Strategy Sessions


The information provided represents Hybrid Equity Indexed Annuity contracts in general and should not be considered specific to any one contract.

For further illustrations, comments or questions please contact (855) CFP-NOWW.

Disclaimers


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Delray Beach, FL 33445United States of America


Website: Find Me An Advisor™

Date post:	01-Nov-2014
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Certified financial planners | Equity Indexed Annuities | Retirement planning

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