How does the SecureFore 3 fixed annuity work?
SecureFore 3 offers you the potential to grow your retirement assets without the risk of stock market declines. It works to maximize your retirement income in two ways: guaranteed* growth and tax deferral.
Guaranteed* growth With SecureFore 3, your contract growth is predictable. The interest rate schedule is locked in for three years. After the initial guaranteed rate period expires, a renewal rate will be declared and guaranteed* for one year. This will occur at the beginning of each subsequent contract year.
Tax-deferral Your contract value grows on a tax-deferred basis, which means your money can grow faster since you will only pay taxes on your interest earnings when you take withdrawals or income payouts. Your earnings stay in your annuity contract until they are withdrawn, allowing you to benefit from interest on your original purchase payment and your earnings. Withdrawals of taxable amounts are subject to ordinary income tax and may be subject to a 10% federal income tax penalty if taken prior to age 59½.
The Power of Tax-deferral
Taxable account Tax-deferred account; after taxes upon withdrawal Tax-deferred account; before taxes upon withdrawal
$350,000
$181,136
$300,000
$158,418
$153,560
$250,000
$134,988 $148,595
$133,102
$121,899
$115,370 $115,768
$200,000
$150,000
$100,000
$50,000
$0
After 10 years
After 20 years
After 30 years
Outcomes may vary depending upon your federal tax bracket and applicable state tax code. State taxes are not reflected, and if included, performance would be lower. This hypothetical chart is intended to illustrate the advantage of tax-deferral and should not be considered to be representative of past, current, or future performance of SecureFore 3 fixed annuity. Withdrawals made prior to age 59½ may be subject to a 10% federal income tax penalty, which is not illustrated in this example.
*Guarantees are based on the claims-paying ability of Forethought Life Insurance Company.
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