BONUS ANNUITIES
When if comes to saving, you are just as much about the money they are able to accumulate (your yield) as they do about the interest rate. If you are looking for a better yield you may see bonus annuities as a sensible solution.
While bonus annuities aren't the answer for everyone, they offer options for a wide variety of goals and concerns. Have you ever asked yourself:
"I'd like to get rid of my low interest CD's. Can a bonus annuity offset my penalties for early withdrawal?"
"One of my fixed annuities pays me steady interest, but the renewal rate is low. Is a bonus annuity a workable alternative?"
To each of these scenarios, the answer may be a qualified "yes." Bonus annuities can help clients get through a recent financial setback, overcome dissatisfaction with a current investment, or recoup CD penalties, transfer costs, or surrender charges.
Here's an example:
$100,000 |
Your initial dollar amount | |
-$5,000 |
Loss of principal due to market drop, penalty, capital gains tax, etc. | |
$95,000 |
Balance after market loss |
$95,000 |
Your initial premium | |
+$9,500 |
10% bonus, immediately credited to your annuity | |
$104,500 |
Premium plus bonus for initial balance in bonus annuity |
|
+$2,613 |
First year interest at assumed 2.5% base rate | |
$107,113 |
Guaranteed first year yield of 12.75% |
The hypothetical example assumes that you make no additional premium payments or withdrawals, the current five year yield would be 4.47%.
Choosing the right vehicle for retirement can be difficult...
To ensure the safety, security and NO risk on your investment requires a
Financial Advisor.
Planning for today and for your future
Schedule your NO OBLIGATION appointment today. |
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