Income without using your retirement savings principal	back to home

Many people nearing, or already in retirement have a need for additional income, but they wish to keep their savings or principal intact for future use. The method of using annuities for income while retaining your original principal is an excellent financial planning concept.

Here is an example of how it works. You begin with $100,000 in a taxable savings vehicle, such as a CD or mutual fund. You transfer the $100,000 into two different annuities. You place $44,161 into an immediate or "income annuity", and you place $55,839 into a tax-deferred multi-year rate guarantee annuity or "CD annuity" for 10 years. The $44,161 produces $421.63 of tax-favored monthly income guaranteed for 10 years. That is $5,059 of tax-favored annual income, 87.39% (the exclusion ratio), of which is Tax Free! The exclusion ratio figure is tax free because it is considered a return of your original principal. Guaranteed payments total $50,595.

Your remaining $55, 839 is guaranteed to grow back to your original $100,000, thanks to "Triple Compounding" for 10 Years. If retention of your principal is of the utmost importance to you, yet you need income today and for the next 10 years, this planning method may be exactly what you are looking for.

Rates of return are for illustrative purposes only, and not indicative of any particular investment. Your returns will vary. Guarantees are based on the claims paying ability of the issuing insurance company.