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Risk Free College Planning, Retirement Planning, Estate Planning,& Financial Protection
Click Below for More Information
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Risk Free College Planning, Retirement Planning, Estate Planning,& Financial Protection
Click Below for More Information
Aside from using our money to pay our current bills and support our lifestyle, it is important to consider accumulating funds for the following major reasons: RAINY DAY, COLLEGE EXPENSES, RETIREMENT, LEAVE TO HEIRS IN ESTATE. There are various ways that money is accumulated with advantages and disadvantages to each. The following table shows the various ways that money is invested for cash accumulation. It also shows the relative strengths and weaknesses of each approach.
There are many approaches one can use to increase your assets. Each approach has advantages and disadvantages. The table below shows various ways money can be invested with 7 characteristics of each approach. At Statewide Insurance, we recommend a NO RISK approach to investing, with the potential to yield a much higher rate of return than banks can offer. This can be realized by investing in either LIFE INSURANCE or FIXED ANNUITIES that will grow TAX FREE or TAX DEFERRED.
|
Life Insurance |
Real Estate |
CD |
Money |
Mutual Fund |
Bank Saving Acct |
Variable Annuity |
Fixed/ |
1. Minimal Risk |
Y |
Y |
Y |
Y |
N |
Y |
N |
Y |
2. Guaranteed No Loss of Principal |
Y |
N |
Y |
Y |
N |
Y |
N |
Y |
3. Minimum Taxes |
Y |
Y |
N |
N |
N |
N |
Y |
Y |
4. Guaranteed Growth |
Y |
N |
Y |
Y |
N |
Y |
N |
Y |
5. Access Money without penalty |
Y |
N/A |
N |
Y |
Y |
Y |
N |
Y |
6. Money Liquid |
Y |
N |
N |
Y |
Y |
Y |
Y |
Y |
7. Guaranteed Death Benefit Growth |
Y |
N |
Y |
Y |
N |
Y |
N |
Y |
| 8. GUARANTEED INCOME FOR LIFE | N |
N |
N |
N |
N |
N |
N |
Y |
Safe Money vs Risk Money - What are the advantages and disadvantages? Click Here For Movie
Please contact us to discuss your specific situation.
Retirement Planning - Annuities or not? Click here for a primer
How To Guarantee Your Retirement Income For Life - No Risk |
Guaranteed Lifetime Income -- Guaranteed Never to Lose Principle -- |
Retirement Income Case Example
60 Year Old Female
| $200k (est.) currently at risk in the stock market generating $600 per month in dividends. |
| $40k (est.) in CDs |
Cash Needs:
| Retirement date - 6 years (age 66) |
| Retirement Income needed: approximately $3,000 income per month ($36,000/yr) |
| Current Income Needed: $600 per month needed until retirement |
| Social Security benefit: Estimated to be about $18,000 per year ($1500/mo) |
The Plan:
1. Deposit $140,000 into an Equity Indexed Annuity (EIA) with a 10% bonus and a guaranteed Lifetime Income Benefit Rider (LIB). Defer income for 6 years. Take Lifetime income of $963.00 per month. |
2. Deposit $94,730.90 (subject to rates at time of investment) into a Single Premium Immediate Annuity (SPIA). |
Result:
| 1. The SPIA (see illustration) will generate a guaranteed monthly income of $600.00 for life. Because the monthly income need will rise to $3,000.00 per month at retirement (Age 66), we factor in her social security benefit and the SPIA payments resulting in the need for an additional $900 per month. |
| 2. The FIA with the LIB deferred for 6 years will provide a guaranteed annualized payment of $11,555.62 ($962.97/monthly). |
| 3. Total Income at retirement guaranteed without risk - $36,756 per year for life. |
| 4. Should death occur before the accumulated value of the annuity has been depleted, the accumulated value that remains would be available to her beneficiaries. |
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Statewide Insurance Co. represents companies that are reliable, strong financially, with a proven track record. Some of them are:
| American General (AIG) | Old Mutual |
| Banner Life Insurance Co. | ING |
| Allianz Life Insurance Co. | Genworth |
| Aviva | American Equity |
| Equitrust | More.....More |
There are various types of Life Insurance available for different needs.
Some of the Life Insurance types available in our product portfolio are as follows:
Insurance Type |
Uses |
| Term | Protection only for a specified period of time, usually 10, 15, 20,or 30 years. Used to insure college tuition and mortgage payoff in event of premature death. This is used by individuals to protect their family, for business partners to facilitate the purchase of the business by a surviving partner or for protection against the untimely death of a key employee. |
| Guaranteed | Provides for a guaranteed death benefit without a term. Like a term policy without the specified term.. |
| Universal Life | Cash build up as well as death benefit. Can be used for the same reasons as term, with the added feature of cash buildup. Premiums are flexible. Cash may be withdrawn prior to death in the form of a lump sum or pension. This feature is used for retirement planning |
Indexed Universal Life. |
This is the same as Universal Life with the possibility of greater returns and hence potentially greater cash buildup than standard Universal Life. |
| Universal Life with LTC Benefit | Provide cash to pay for Long Term Care if needed. Death benefit may be utilized while insured is alive to pay for Long-Term Care. |
| Single Prem Perm Life with Lifetime LTC Benefit | This product is unique in the industry and is a real win-win product. You can convert dormant assets into a Death Benefit multiplying the $ available for Long Term Care (LTC) while you are alive if needed. It has a unique rider which can provide lifetime LTC benefits as well. If the LTC is not needed, the death benefit goes to the beneficiary. (Win-Win) |
Please contact us with your situation so we can propose a solution to your cash accumulation needs whether it be for college, retirement, or estate planning or any other reason.
When determining which nonqualified annuity is a good fit, be sure to evaluate the distribution options in addition to the features and benefits of the contract.
In 2001, the IRS published private letter ruling 200151038 that paved the way for the "nonqualified stretch" as a new distribution option.
The NON QUALIFIED STRETCH is similar to the stretch IRA distribution strategy. It enables beneficiaries to take a death benefit payout over their life expectancy. Previously, insurance companies assumed the law gave beneficiaries only three distribution options for inherited nonqualified annuities: lump-sum distribution, five-year deferral, or annuitization. Even today, many insurance companies still limit beneficiaries to one of these three options.
With the nonqualified stretch option, beneficiaries are required to take a distribution from the inherited annuity each year, based on their fixed-life expectancy. Beneficiaries can then leave the balance of the annuity proceeds with the insurance carrier with the potential for continued tax-deferred growth.
No post-death 1035
Unlike an inherited IRA, which can be easily transferred to another financial organization after the IRA owner's death, there is presently no authority for transferring the proceeds of a nonqualified annuity to another carrier after the contract owner's death.
THIS WILL ALLOW YOU TO EXTEND YOUR LEGACY OVER MULTIPLE GENERATIONS.
So, if you are interested in having the nonqualified stretch available to your beneficiaries, you will need to purchase your annuity from an insurer who offers this distribution option. Not all carriers offer this option.
Contact Statewide Insurance Co. (Click Here) for annuities with this option available.