Preserve Multi-Year Guaranteed Annuity It’s never too early to start planning for retirement. Selecting a strategy that works best involves assessing your goals, time horizon and risk tolerance. A single premium deferred annuity is a product that, for a single initial investment, earns a fixed rate of interest allowing your money to grow on a tax-deferred basis until you decide to begin receiving annuity payments. Preserve Multi-Year Guaranteed Annuity, a single premium deferred annuity, offers multiple guarantee periods to align with your specific needs and guarantees the interest rate for that entire guarantee period. Fixed annuities are insurance products that serve a variety of needs. You can expect solid, guaranteed growth from a fixed annuity as long as the funds remain in the annuity until the end of the surrender charge period. With a fixed annuity, not only do you gain peace of mind, but you can be confident that what you expect is what you will receive, which is ideal for retirement planning. Tax-Deferral Tax-deferred growth allows your money to grow faster because you earn interest on dollars that would otherwise be immediately taxable. Your premium earns interest, the interest compounds within the contract, and the money you would have paid in taxes earns interest. Income taxes are deferred until funds are withdrawn from the contract. The chart below details the potential and advantage of a tax-deferred annuity.
Tax-Deferred Tax-Deferred less Taxes Taxable
$250,000
The Benefits of Tax-Deferral* Paying taxes on investments each year will reduce the amount of funds available for growth and compounding. With a tax-deferred investment, your earnings will accumulate on both your principal and interest which results in greater accumulation over time.
$200,000
$150,000
$100,000
$50,000
$0
0
5
10
15
Years
* Chart is a hypothetical illustration of tax-deferral and assumes an initial premium of $100,000 earning 5.00% compounded annual rate of returnfor each Guarantee Period on an annuity that renewed for three consecutive 5 year guarantee periods totaling 15 years. For other Guarantee Period combinations, surrender charges may apply using this same hypothetical 15 year period. Not intended to predict or project performance. Tax-deferred value less taxes represents the increase in value due to tax-deferral, less taxes at an assumed rate of 33%, with no surrender charge or Market Value Adjustment applied. Precise measurement of tax benefit will depend upon each owner’s individual circumstance.
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