Could you afford a “Lost Decade” during your retirement? The “Lost Decade” is what many market analysts have labeled the 10 years from 2000-2010 when key U.S. stock market indices posted either low or negative returns. If a Power Series Index Annuity had been available during the “Lost Decade” (based on the assumptions below), it would have protected your annuity’s value from sharp market declines and provided growth over this time period. Please note that past performance is not a guarantee of future results.
A Power Series Index Annuity would have provided more growth and protection than the S&P 500 ® over the Lost Decade Based on the hypothetical assumptions below
Growth potential The interest earned is based in part on the positive performance of the index
Down market protection Poor performance does not impact the annuity’s value and no interest is earned
$150,000
$136,097 Power Series Index Annuity $95,238 S&P 500 ® Index (without dividends)
$100,000
$50,000
Impact of losses Without down market protection, it would have taken nearly 4 years for the S&P 500 ® to recover from earlier losses
-13.04% -23.37% +26.38% +8.99% +3.00% +13.62% +3.53% -38.49% +23.45% +12.78% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
S&P 500 ® Performance
Hypothetical example assumptions : Power Series Index Annuity with Annual Point-to-Point Index Interest Account (S&P 500 ® Index without dividends), $100,000 premium, 5% annual index rate cap (held constant for the period shown) and no features or accounts with fees. The Annual Point-to-Point Index Interest Account earns interest based on the S&P 500 ® index performance from one contract anniversary (an anniversary of the date the contract is issued) to the next contract anniversary (and subsequent anniversaries), subject to the 5% index rate cap. This chart is for illustrative purposes only and is produced with the benefit of hindsight for the period, 12/31/2000–12/31/2010. It is not intended to predict actual performance. Indices are unmanaged and are not available for direct investment. The index rate cap is hypothetical and may be reset at a higher or lower rate on each contract anniversary by the issuing insurance company. It assumes no deduction of taxes and no dividends reinvested. If dividends were included, the values shown would be different and the performance gap could be smaller. Past performance is not a guarantee of future results.
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