Certified financial planners | Equity Indexed Annuities | Retirement planning

Annuity Advocacy from
Certified Financial Planner™
Fiduciaries
The Institute for Retirement
Planning
Find Me An Advisor™

Find Me An Advisor™ is an authority on Variable and
Equity Indexed Annuities contracts as well as Successful
Retirement Income Strategies.
Unlike many life insurance only advisors that can only
offer fixed life insurance products, Find Me An Advisor™
has a Series 7, 66, life and health licenses, allowing our
team to represent a large mix of investment products.
Certified Financial Planner

"Based upon many years of helping retirees with
retirement distribution and income maximization it is
evident that Equity Index Annuities have become an
integral role of a core portfolio.”

Two Basic Components
1. Your Account Value
2. Living Benefit Rider - your income is
guaranteed for life
Equity Index Annuities

1. Account Value
Your Account will earn interest annually
from 0% to potentially over 40%.
Your account can never lose money in the
stock market.
The interest earned is dependent upon the
contract and investment strategy chosen.

Your money grows based upon a variety of
stock market index strategies, but you can
never lose money from stock market
declines.
In fact, the only way your investments can
decline is if you withdraw the funds or from
living benefit rider fees, if elected.
Part 1: How Your Account Grows

 Contracts will earn a variable rate of return from a 0%
worst case scenario to as high as the market can grow
or a CAP, depending on the contract.
 Strategies have a starting point value of a stock or
commodity index on the contract issue date. i.e. S&P
500 3/1/2012 was1408.
 At the end of one (or more) contract year an interest
rate for the time period is declared and you receive
your statement. i.e. S&P 500 3/1/2013 was1551.
 This could equate to a 10.2% return with some
strategies. (1551 1408).
Part 1: How Your Money
Grows

It is important to understand how interest is calculated as it can vary
between contracts dramatically. Here is a short list of strategies to
consider:
Fixed rate option (money market)
Annual point to point with a cap rate option (if the index earns 20%
and the cap is 6%, than you earn 6%). If the number is negative, you earn
0%.
Monthly cap rate option (example: if the cap is 2 for the month, that is
the most you can earn that month, conversely, there is no cap on the
downside)
Monthly average option (averages the monthly index returns)
Uncapped point to point two year strategy minus a spread (earn
whatever the index earns minus an annual fee)
NOTE: Review these strategies in more detail with a qualified advisor.
Part 1: Investment Choices

All annuities grow with tax deferral much like a
401(k).
Ordinary income tax is due when annuity profits
are withdrawn on non qualified funds.
As always, Qualified or IRA funds are taxed at
ordinary income when withdrawn.
Part 1: Annuity Taxation

One new strategy is calculated off the
commodities Trader Vic Index.
This can provide your portfolio with much
needed diversification.
This strategy has no cap on a 5 year, point to
point option.
Historically this strategy option is averaging 8%
with no market risk.
Commodities Index Strategy

Your named beneficiaries will receive your
account balance remaining in the contract.
Your heirs will receive the money free from
probate court hassles.
Your beneficiaries will have tax consequences
that can be manipulated to their favor with
proper tax planning.
Part 1: Beneficiaries

Many contracts offer an attractive 8% -10%
signing bonus.
The longer the contract the higher the bonus,
generally.
Some contracts take back their bonus if contracts
are surrendered early.
Part 1: Signing Bonuses

"Historically, insurance companies are safer
than banks and include tax deferral on
investment growth. With CD's at all time
lows and Hybrid Equity Index annuities
providing signing bonuses, income for life,
and stronger return potential, it is clear why
the industry has grown exponentially, as of
late."

2. Living Benefit Rider
Guarantees income for your life and your spouse
Your rider grows income each year you delay
taking income.
Similar to Social Security, each year you delay
income, your check grows.

Living Benefit riders are an optional benefit that
can be elected at contract issue for a fee usually
under 1%.
The rider can provide income for life, sometimes
on two lives.
Each year income is delayed, the guaranteed
lifetime check grows larger, like Social Security.
Part 2: Living Benefit Riders

Living Benefit riders provide income for life and a
spouses life or another persons life if desired.
This can be very useful tool to protect people
against running out of money.
Riders grow on a guaranteed basis so one can
plan with
Part 2: Living Benefit Riders

Riders grow at a contractually guaranteed rate
that cannot be changed.
The growth of this rider is then multiplied by a
payout factor which is based upon your age at the
time you wish to turn on lifetime income.
Part 2: Living Benefit Riders -
How Income is Calculated

How Income is Calculated
Investment 7% LB Rider Age
Payout
Factor
Lifetime
Check
Increase
US$100,000 US$100,000 Age 60 5.0% US$5,000 -
0% - ?% US$107,000 Age 61 5.1% US$5,457 9.1%
0% - ?% US$114,490 Age 62 5.2% US$5,953 9.1%
0% - ?% US$122,504 Age 63 5.3% US$6,493 9.1%
0% - ?% US$131,800 Age 64 5.4% US$7,078 9.0%
0% - ?% US$140,255 Age 65 5.5% US$7,714 9.0%
0% - ?% US$150,073 Age 66 5.6% US$8,404 8.9%
0% - ?% US$160,578 Age 67 5.7% US$9,153 8.9%
0% - ?% US$171,819 Age 68 5.8% US$9,965 8.9%

In an article written by the Wall Street Journal on March
5, 2013, professor Pfau at the American College of
Financial Services said, "There is no need for retirees to
hold bonds, annuities with their promise of income for
life act like SUPER BONDS with no maturity dates.”

Living Benefit Riders can grow at simple or
compound interest and should be compared
between carriers by the final lifetime income
check.
Do not get manipulated by high bonuses on living
benefit riders, all parts of the contract must be
reviewed by an experienced agent for best
results.
Part 2: Comparing Riders

Sometimes just taking a regular withdrawal and
letting your living benefit rider compound can be
a wise move.
It is best to call your agent and review your
options carefully when withdrawing money from
your contract for best results.
Part 2: Maximizing Rider

Some contracts have a home health care - doubler
feature which will double your income for five
years - if you cannot perform 2 of 6 activities of
daily living.
This feature has been attracting many seniors
that do not want to pay long-term care insurance
premiums.
Part 2: Home Health Care
Doubler Feature

Some contracts now include a death benefit feature
that grows the investment for your heirs at a
guaranteed rate.
These contracts have unique benefits but need to be
understood to maximize their benefits.
Death Benefit Riders

Hybrid Equity Indexed Annuities represent a solid
core portfolio holding for retires in the 21st century,
providing invaluable income for life certainty and
the potential to outpace some inflation while
marinating a principal balance potentially for heirs
or an emergency.
Conclusion

As always, it is important to review ALL your
investment options and work with fully licensed
and experienced financial professionals.
Review Your Options

If you would like to speak to our CFP™ or a member
of our nationwide team please schedule your free
strategy session by calling
(855) CFP-NOWW
Free Strategy Sessions

The information provided represents Hybrid
Equity Indexed Annuity contracts in general and
should not be considered specific to any one
contract.
For further illustrations, comments or questions
please contact (855) CFP-NOWW.
Disclaimers

Contact Us At
findmeanadvisor.com
IT’S FAST, FREE & EASY
Address
1845 Palm Cove Blvd #303
Delray Beach, FL 33445
United States of America
Website: Find Me An Advisor™

Certified financial planners | Equity Indexed Annuities | Retirement planning

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