BUILD YOUR OWN PENSION PLAN
TWO CASE STUDIES: JOAN & JANE

 
JOAN
Ten years ago, Joan invested her $100,000 401(k) lump-sum in a no-load S&P 500 Index mutual fund.
Unfortunately, over the last ten years, Joan's Index fund lost 25% of its value, leaving her with less than $75,000.
JANE
Ten years ago, Jane also had a $100,000 401(k) - which she put in a tax-deferred indexed annuity with a 10% bonus.
Even though the stock market was down, Jane's principal and gains were protected against loss and indexed to market gains.
 
.
2000-2010: JOAN'S MUTUAL FUND LOST 25%
ENDING VALUE: $74,747

.
2000-2010:JANE'S ANNUITY GAINED 67%
ENDING VALUE: $166,558


.
If Jane had opted for a fixed account option in the down-market years,
her annuity would have increased even more over the same period: 81%.

Since Jane's annuity is part of her retirement plan, she made sure to choose the
Lifetime Income Benefit Rider - which will ensure her a guaranteed income as long as she lives.

Jane's annuity's Income Rider compounds at 8% a year, guaranteed.
After 10 years, her Income Account Value will grow to $273,481.
At age 70, her annuity will provide a guaranteed annual income of 6% of this figure for life.
That's $14,249 a year that Jane cannot outlive.
.

In addition, after the first year, she can withdraw up to 10% of her annuity value a year,
penalty-free, for any purpose and up to 100% in the event of a terminal illness diagnosis.
After 3 years, she may withdraw 100% in the event of nursing home confinement.
In the event of death, the full value is payable to her beneficiaries without surrender charges.

SUITABLE FOR NON-QUALIFIED & QUALIFIED FUNDS (INCLUDING TAX-FREE ROTH IRAs).

FOR ILLUSTRATION PURPOSES ONLY - NOT AVAILABLE IN ALL STATES

Indexed Annuities are products of the insurance industry and are not guaranteed by any bank or FDIC insured.
An annuity is a contract between you and an insurance company providing guaranteed interest and guaranteed income options.
Guarantees are backed by the financial strength and claims-paying ability of the insurance company.


Please refer to your state Office of the Insurance Commissioner for individual state guarantees.

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