Get 8% Guaranteed Interest on the Income Account Value	back to home

The fixed-indexed annuity gives the client safety, a potential upfront Premium Bonus of 10%, plus an 8% guaranteed interest rate on the income account value, used for calculating lifetime income benefit payments* that you cannot outlive.

Think about a person's ability to develop an income stream in retirement. An income stream is what retirement is all about, is it not? In regard to retirement income, the financial services industry is turning to the insurance industry to provide guaranteed monthly income their clients cannot outlive. Annuities are seeing a substantial increase in demand due to the safety of fixed "CD-like", and fixed-indexed annuities. The insurance industry is highlighting the advantages of annuities like never before.

Riskier, market sensitive investments, such as stocks, bonds, and mutual funds are different financial instruments, and may provide more upside potential. However, market sensitive investments subject the consumer to even greater potential to the downside, as one must take into account the costs that are charged to the consumers account values. Costs deplete client assets, and that is a fact.

The real merit of these insurance products can be easily seen in black and white, one page illustrations. Ask your current advisor a simple question: can he or she find a safe, guaranteed method involving securities (investments i.e. stocks bonds, mutual funds, variable annuities), or bank products (CDs), that could provide you with a guaranteed lifetime income payment in excess of **7 % of your savings? Can they guarantee that such a payment would never decrease in their lifetime, regardless of the gyrations of the stock market?

Now, ask your advisor if he or she could find a method of providing you with an increasing income stream in retirement. For example; based on a $100,000 deposit, accumulating for 10 years, assuming a hypothetical interest rate of just 5%, an annuity could provide an increasing income stream of $9,821 the first year, $15,902 the tenth year, and $27,163 in the twentieth year, and continue to increase each and every year thereafter, as long as you live. Ask your advisor if he or she can do this for you.

The answer will be no, unless you are using the correct income vehicle. The answer is a fixed-indexed annuity with the proper income rider. The right income product will ensure the consumer that they will never outlive their savings, and the right product is an income/index annuity, providing you an income for life, guaranteed.

American Annuity Advocates wants you to know that this is yet another advantage of fixed, fixed-indexed, and income annuities. These insurance products are designed to protect you and your life savings, using insurance, mathematical life pooling principles, and actuarial tables. Only an insurance product can do this -provide an income stream you cannot outlive, and/or one that increases over time.
*Income Account Value only accessible through guaranteed lifetime income benefit payments. Based on male or female age 55, 0.45% fee taken from base annuity contract value annually."** Includes 10% premium bonus, calculated after 10 years of deferral.

If this sounds too good to be true, I assure you it is not. I invite you to request an illustration, providing an analysis of your situation. Does your current financial advisor have the products, the tools, and the proper experience necessary?

A 10% upfront bonus, plus a guaranteed interest rate in the income account value of 8%, has real value. A life income annuity product with a 10% bonus is a reliable method of delivering income that cannot be matched by the use of market sensitive investments.

Every vehicle on the spectrum of risk and return may deserve a spot in a client's portfolio. Stocks, mutual funds, bonds, and even options, may be appropriate in various situations, but only annuities can provide the guarantees we are talking about here, as all other strategies involving market sensitive investments, contain market risk, and/or costs, fees, expenses etc.., and may not be, in our opinion, as appropriate as the income products available from the insurance industry.

Regardless of whether or not you utilize securities or fixed products in your overall portfolio, income in retirement is a genuine problem you can now solve!