1. Add stability, reduce volatility
The power of annuities, clarified.
SM
For decades, consumers have relied on bond mutual funds as a way
to create current income and diversify their portfolio from the higher
volatility associated with equities. In fact, as interest rates have
generally declined since the early 1980s, many bond funds have
provided solid long term returns.
Today, the need for income and diversification hasn’t changed, but the
interest rate environment has: many market observers expect interest
rates to rise over time. As you prepare for retirement, your financial
professional is likely to look for products with these characteristics:
• A source of interest income for your retirement portfolio
• Diversification to reduce risk
• Better yield opportunities than currently available
on conservative financial products
Bond Funds In a Rising Interest Rate Environment
Bond funds typically hold a portfolio of many individual bonds.
Each bond in the portfolio will fluctuate in value as the interest
rate environment changes. When rates go up, a bond’s price (and
bond fund returns) will go down; if rates go down, the bond’s price
will go up.
Fixed Index Annuities are issued by
Genworth Life & Annuity Insurance Company, Richmond, VA
Genworth.com/Annuities
Learn how annuities can
Protect, Grow and Provide
as part of your Retirement Income
Planning Strategy.
• Guaranteed growth if held
for a specified period
• Protect principal from the
impact of interest rate spikes
and equity market declines
• Provide the opportunity
for interest credits similar
to or greater than many
traditional fixed income vehicles
Ask me about Genworth
Annuity Strategies
SecureLiving® Index 7
Prepare for the Unpredictable
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Value
of your bond
mutual fund
Interest
Rates
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3. As you and your financial professional create and manage your retirement
portfolio strategy, allocating a portion to a SecureLiving Index 7 annuity can
be a wise choice.
Protect your fixed income allocation from loss of value, create greater
opportunities for growth potential, and guaranteed lifetime income.
Genworth.com/Annuities
Potential Tax Benefits for Money Held Outside of Qualified Plans
Additional tax benefits may be available when you reallocate non-qualified money
into an index annuity:
Comparisons
Bond
Fund
SecureLiving
Index7
Comments
Interest Immediately
Taxable As Earned
Yes No Taxes on annuity interest are deferred until withdrawn.
Can Help Reduce
Social Security
Taxation
No Yes Interest earned within a bond fund is counted as income
for Social Security taxation purposes (unless held in IRA)
Can Help Reduce
Exposure to 3.8%
Healthcare Surtax
No Yes The tax deferred growth in an annuity doesn’t increase
Modified Adjusted Gross Income (MAGI) nor is it
considered net investment income. Thus, a deferred
annuity is not impacted by the surtax unless there is
a taxable distribution from the contract.
This example assumes a bond fund that generates taxable income at least annually.
SecureLiving Index 7
• Tax-deferral
• Greater growth potential
• Protection from market
downturns and interest
rate risk
• Opportunity to
create guaranteed
lifetime income
