Guaranteed lifetime income for retirement
Market volatility combined with the limited availability of traditional retirement income sources, such as defined benefit pension plans, has placed a greater responsibility on Americans saving for their future. With this greater responsibility comes a need for financial solutions that can help provide a new level of preservation for retirement savings.
If your long-term objective is to build a source of guaranteed lifetime income* or leave a legacy for your loved ones, Chamberlin Financial can help by offering annuities with benefits designed to meet your retirement goals.
A fixed index annuity, FIA, is a contract between you and an insurance company that may help you reach your long-term financial goals. In exchange for your premium payment, the insurance company provides you income, either starting immediately or at some time in the future.
Most FIAs have two unique phases: an accumulation phase and distribution phase.
An FIA also helps ensure you will receive at least the minimum guaranteed interest credited to the contract.
With a FIA, you defer paying taxes on your contract's interest until you receive money from the contract.
The accumulation phase begins as soon as you purchase your annuity. Your annuity can earn a fixed rate of interest that is guaranteed by the insurance company or an interest rate based on the growth of an external index. The market risk shifts away from you to the insurance company. You are able to benefit from a market rise but never participate in a market decline.
The distribution phase of a fixed index annuity begins when you choose to receive income payments. You can always take income in the form of scheduled annuitization payments over a period of time, including your lifetime. Many fixed index annuities allow you to take income withdrawals as an alternative to annuitization payments.
A fixed index annuity, FIA, offers tax deferral, indexed interest potential, and optional benefits to help protect your long-term goals. No other financial vehicle secures your retirement assets and income with this unique combination of benefits.
Under current federal income tax law, any interest earned in your fixed index annuity contract is tax-deferred. You don't have to pay ordinary income taxes on any taxable portion until you begin receiving money from your contract. Withdrawals are taxed as ordinary income and, if taken prior to age 59 1/2, a 10% federal additional tax may apply.
Fixed index annuities provide an opportunity for potential interest growth based on changes in one or more indexes. Because of this potential indexed interest, FIAs provide a unique opportunity for accumulation. And since the interest your contract earns is tax-deferred, it may accumulate assets faster. In addition to potential indexed interest, FIAs can offer you an option to receive fixed interest.
Fixed index annuities offer you a level of protection you may find reassuring. That protection can benefit you in three separate ways:
In his latest research, economist Roger Ibbotson argues that fixed indexed annuities have the potential to outperform bonds in the near future and smooth the return pattern of a portfolio.
One of the many fears many people have nearing retirement is outliving their money or not keeping up with the cost of living. This problem can be easily solved by linking your retirement income to an index that moves up with inflation and is locked in annually.