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#1 Multi-Year Guarantee
This is an excellent plan for the retiree looking to lock in a high competitive interest rate for a five-year period. (Currently 5.25%) Certificate of Deposit owners should take a close look at this one.
#2 Index Annuity Select
This annuity is suitable for individuals who want to buy mutual funds but is uncomfortable with market loss, and who seek opportunities for higher yields, liquidity and tax-deferral. The Index Annuity can be used for qualified money or non-qualified.
#1 Multi year Guarantee , that extra bit of security...
Tax deferral
Each years interest earnings are tax deferred as long as no withdrawals are made from the account. This important advantage allows your account to grow more quickly because the money your would have paid in taxes is allowed to compound.Liquidity
Your money is always available. 10% Penalty free withdrawal of your account value each 12 months or automatic monthly withdrawal's of up to interest earned on your policy. Payout features allow you to convert your account to a fixed period payout or a guaranteed income you cannot outlive. (If under age 59˝, you may be subject to a 10% federal income tax penalty.)Low Surrender Period
Like a CD; early withdrawals incur a surrender penalty. There is a 5 year decreasing surrender charge as follows: 9%, 9%, 8%, 7%, 6%, and 0%. All surrender charges are waived at the end of the 5th year.Nursing Home and Terminal Illness Waiver
The company will waive surrender charges-certain restrictions apply.Easy to Purchase
The Multi-Year Guarantee is available to anyone age 0-90 who can set aside a minimum single deposit of $5,000. (IRA deposit $2,000.) And remember that your money is invested without sales charges or annual management fees.
#2 Index Annuity Select, everything to gain and nothing to lose...
Market-type gains without the stock market risk
Look no further than the Index Annuity Select. This tax-deferred equity index annuity gives you stock market-type gains without stock market risk---growth and safety combined. Few accumulation vehicles can offer the chance for gain without the risk of loss. The Index Annuity Select can and does.
The Index Annuity Select is linked to the performance of the Standard and Poor's 500 Composite Stock Price Index®(S&P 500®)
Its an annuity that lets your clients participate in the upward movement of the equity market. Because this product has a guaranteed cash surrender value, it protects you from market downfalls. In addition, the Index Annuity Select allows you to enjoy the benefits of tax deferral.
Access to your money*
After the first contract year you may withdraw up to 10% of your premium value each year with no surrender charge. After the contract term of 10 years, you may select from three withdrawal options.
a. Float your account-keep in force, enjoy index credits, and surrender anytime penalty-free.
b. Annuitize your account for an income you cannot outlive.
c. Surrender for full value.
**If under age 59 ˝, you may be subject to 10% federal income tax penalties and partial withdrawals will reduce your index credits.
Benefit to your heirs
In the even of your death, at least the cash surrender value goes directly to your beneficiaries, bypassing probate.
This is a partial list of the features and benefits of these contracts please contact RAC for full disclosure. These annuities are not approved in all states. Past performance does not guarantee future results.
1) Can I exchange my current annuity for one of the
ones listed above?
Absolutely, this is known as a 1035 tax-free exchange, the transfer from one Annuity Company to another; such a transfer is not taxed.
2) I'm not familiar with Index annuities, are they new?
Even though annuities have been around for well over 100 years, the index annuity is a new concept and has only been around about 8 years. Yet, in 2002, sales of index annuities was over 11.6 billion. This may be considered the hottest investment vehicle on the market.
3) I'm getting a low interest rate on my CD's and I'm taxed on the interest, whether I use it or not. How can an annuity help me?
Depending on your needs an annuity can deliver the same level of safety with a more competitive interest rate and put you in control of when to pay taxes.
4) I have an IRA that I would like put in an annuity, will I have to take my money out?
If your annuity is part of a Qualified plan (IRA, Keogh, pension plan etc.) then the Internal Revenue code generally requires that you begin taking payments by age 70˝. If it is Non-qualified, then the company may never require you take any money out, no matter how old you get.
5) When I take out an annuity, don't I have to pay a charge?
Absolutely not. 100% of your money goes to work for you from day one.
RAC has an OPEN DOOR policy, we welcome any other question or comments.
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