Free to Retire
Who is responsible for your retirement security? If you correctly answered, “I am,” you are among the 81% of Americans who recognize this inescapable fact of modern life.1
But if you’re like many people, there are too many distractions and responsibilities that compete for the time required to develop a winning retirement strategy.
In such a situation, a variable annuity might provide a way to help you pursue your retirement goals.
Here Come the Pros
With a variable annuity contract, one or more payments are made to an insurance company, which agrees to pay the contract holder an income at a future date. The contract holder can direct the premium payments to be invested in a mix of underlying equity and fixed subaccounts that pursue investment gains.
Variable annuity subaccounts are run by professional money managers who pursue the subaccounts’ stated investment objectives. This leaves the contract holder free to focus on his or her own interests, rather than having to worry about the inevitable fluctuations of the financial markets.
A variable annuity is a long–term retirement savings vehicle. It isn’t subject to minimum withdrawal requirements in retirement, and it offers a wealth of payout options when you are ready to begin collecting retirement income.
Of course, variable annuities have contract limitations, fees, and charges. Subaccount values fluctuate with changes in market conditions. When the annuity is surrendered, the principal may be worth more or less than the original amount invested.
The earnings portion of annuity withdrawals is taxed as ordinary income. Distributions prior to age 59½ may be subject to a 10% federal income tax penalty. Surrender charges may also apply during the contract’s early years. Variable annuities are not guaranteed by the FDIC or any other government agency. They are not deposits of, nor are they guaranteed or endorsed by, any bank or savings association.
Variable annuities are sold only by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.
1) National Association for Variable Annuities, 2006
Fee-Based financial planning
11100 Wayzata Blvd, Suite 161
Minnetonka, MN
55305
Phone: (952) 277-4259
www.joeswanson.com
swanson.joe@principal.com
