Time and money are two of your clients' top assets. Don’t let lack of fixed index annuity awareness cost them valuable time and money in retirement.
The cost of waiting
Two individual pre-retirees, have the same goal: add $10,000 in annual income when they retire at 65. Both individuals are interested in the IncomeShield 10 fixed index annuity,* with a Lifetime Income Benefit Rider that provides a 7.25% simple interest growth rate to the income account value. The only difference is one purchases at 58; the other at 64.
Cost of Six Years: 40% more premium required to generate $10,000 additional income
The IncomeShield fixed index annuity provides the principal protection that the clients need during the critical years leading up to and into retirement. By purchasing early, Dave is able to build on that protection and secure a supplemental lifetime income stream that meets his income goals.
Let’s take a closer look at our hypothetical demonstration to see the growth needed for that approach to generate $10,000 in retirement income with an IncomeShield 10 fixed index annuity.
A 58-year-old individual, looking to retire at 64, would need an annual growth rate of 5.8% on their $125,754 principal to raise enough capital for a $176,754 purchase payment of an IncomeShield 10 with Lifetime Income Benefit Rider that would generate $10,000 in retirement income. Each year the guaranteed income purchase is postponed, the greater the growth rate and more significant the equity risk required to catch up.
Don't delay. Inform your clients on the benefits of American Equity's IncomeShield 10!
The IncomeShield fixed index annuity line is designed to “shield” a portion of your client's portfolio from retirement unknowns like market declines. It offers the crucial benefit of asset protection with no loss of principal due to market volatility, along with a powerful combination of guaranteed income and lifetime income options.
Lifetime Income available through optional Lifetime Income Benefit Rider. Available for issue ages 50+
Annuities and Rider issued under form series ICC17 BASE-IDX, ICC17 BASE-IDX-B, ICC17 IDX-11-10, ICC19 E-MPTP, ICC19 E-PTPC, ICC19 E-PTPR, ICC16 R-MVA, ICC20 R-LIBR-FCP, ICC20 R-LIBR-FSP, ICC20 R-LIBR-W- FCP, ICC20 R-LIBR-W-FSP, and state variations thereof. Availability may vary by state.
Provisions of the Lifetime Income Benefit Rider, such as Income Account Value Accumulation Rates, may change prior to issue. IAV only used to calculate lifetime income payments. Not part of contract value or available in a lump sum. Interest grows until the earlier of payments beginning or the end of the IAV period. Certain eligibility requirements and restrictions may apply.
1Bonus available only on IncomeShield 10. Bonus available on 1st year premiums. Each year after the 1st contract year, you become vested in a percentage of the bonus, until 100% vested at the end of the 10th contract year. Vested amounts of the bonus are the amounts not forfeited as a result of an early withdrawal or surrender. Bonus, surrender charges, and vesting schedules may vary by state. See brochure and disclosure for details. Surrender charges may apply to excess withdrawals that exceed the annual free withdrawal available under the contract. You may be subject to a 10% federal penalty if you make withdrawals before age 59 1/2 Guarantees are based on the financial strength and claims paying ability of American Equity and are not guaranteed by any bank or insured by the FDIC.
For a comprehensive overview of all the relevant features, benefits, and limitations of the IncomeShield 10 fixed index annuity. Please read the sales brochure and disclosure for complete details.
This material is for informational purposes only, and is not a recommendation to buy, sell, hold or rollover any asset. It does not consider the specific financial circumstances, investment objectives, risk tolerance, or need of any specific person. In providing this information American Equity Investment Life Insurance Company is not acting as your fiduciary as defined by the Department of Labor. American Equity does not offer legal, investment or tax advice or make recommendations regarding insurance or investment products. Please consult a qualified professional.