Annuity Illustrations

While we work with dozens of different annuity providers and programs, below we have provided three examples of Index Annuity illustrations, using actual historical returns of the underlying funds, to help you conceptualize how index annuities can work for you. When you give us a call or fill out your information, we can provide you with customized illustrations specific to you (your age, retirement goal, individual or joint payout, etc.). At that point we can go over the illustration and explain the minimum and also the potential retirement incomes (based on historical performances) that would be available to you during retirement. Also, the guarantees that are unique to Index Annuities, which give you the peace of mind during retirement. Annuities are the only investment vehicles designed specifically for retirement and long term steady income.

All three examples show an investment of $200,000, with no additional funds added at any point. All three use real actual historical returns to determine the annuities cash values and income payouts. As with all Index Annuities that we offer, your account value NEVER goes down if the underlying investments have a negative year. You will simply get a zero return for that year. The only difference in the three scenarios is at what age you invest that $200,000, and when you start taking income out.

Age 55

In this example, the account is funded at the age of 55 with a $200,000 initial premium (investment), and no further funds are added. Income withdrawals begin at 67. Real actual historical returns are used to calculate account values and income payouts. Here are some of the highlights, with the actual illustration posted below.

• $60,000 annual income starting at age 67.
• 3% annual increase in income to keep up with inflation. This is your account and your money, so in a high inflation year, as 2022, or if you have a need for additional funds, you can withdraw more money. It’s your account and your money.
• By the age of 75, a total of $533,540 in total income has been taken out over the prior 8 years (from the investment of $200,000), with a remaining account value of $1,385,000.
• By the age of 95, a total of $2,576,000 income taken out, with an account value of over $7.8 million remaining in the annuity account. You will continue to receive income till death, at which point your beneficiaries will receive the account value (also known as the death benefit) remaining in your account.
• Your account value NEVER goes down because the markets go down. In negative market years you receive zero interest.
• You can always reset how much you take out every month if your income needs have changed and you want to preserve less to leave to your beneficiaries. You can also take out one-time payouts, in addition to your monthly income payouts.

To see the full illustration please click here click here

Age 65

In this example, the account is funded at the age of 65 with a $200,000 initial premium (investment), and no further funds are added. Income withdrawals begin at 67. Real actual historical returns are used to calculate account values and income payouts. Here are some of the highlights, with the actual illustration posted below.

• At 67 income payout begins at $15,000 set to increase by 4% a year to keep up with inflation.
• By 72 annual income has increased to $18,250.
• By 95 annual income has increased to $43,251. A total of $746,152 in income has been taken out (from that initial investment of $200,000), and there is an account value (and death benefit) remaining of $2.9 million. You would continue to receive income as long as you live, with the remaining account value going to your beneficiaries as a death benefit.
• Your account value NEVER goes down because the markets go down. In negative market years you receive zero interest, but NOT negative interest.
• You can always reset how much you take out every month if your income needs have changed and you want to preserve less to leave to your beneficiaries. You can also take out one-time payouts, in addition to your monthly income payouts.

To see the full illustration please click here click here

Age 45

In this example, the account is funded at the age of 45 with a $200,000 initial premium (investment), and no further funds are added. Income withdrawals begin at 62 (retire earlier). You can also choose to start taking out funds at 59 if you wished. Real actual historical returns are used to calculate account values and income payouts. Here are some of the highlights, with the actual illustration posted below.

• $100,000 starting income at the age of 62.
• Income increases throughout retirement to keep up with inflation. For example, income has increased to $153,000 by the age of 74, and over $200,000 by 80.
• By the age of 94 a total of $6.3 million in income received, from that initial (and ONLY) investment of $200,000. There is a remaining of $19 million in account value (and death benefit).
• Your account value NEVER goes down because the markets go down. In negative market years you receive zero interest, but NOT negative interest.
• You can always reset how much you take out every month if your income needs have changed and you want to preserve less to leave to your beneficiaries. You can also take out one-time payouts (if a need arises such as a trip, paying for a new roof, etc.), in addition to your monthly income payouts.

To see the full illustration please click here click here

 

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As you can see in the three examples above, the sooner you start the more you can take out in income during your retirement, and the stronger the growth of the account value and death benefit. Index Annuities give you the peace of mind of knowing that you won’t lose your account value due to negative market years; however, they also give you the opportunity to receive strong and stable returns which would result in higher income and account values during your retirement.

Give us a call, or fill out your information in the “Request” box, so that we can send you a customized illustration based on your age, individual or joint payout, location, etc. Based on your retirement goals, we can discuss different annuities that best suit your needs, provide you with customized illustration(s), and go over those illustrations with you so that you can better understand and visualize how annuities can play a powerful role during your retirement.