How Savy Savers & Retirees Are Beating Low Interest Rates
For almost a decade we have all been grappling with how to best earn an attractive yield on our assets while maintaining a reasonable risk tolerance. That challenge continues today with market volatility back on the radar and as our persistently low interest rate environment continues to erode savers’ and retirees’ wealth. As a solution to this problem we have been assisting many clients in capturing a unique high yielding alternative to cash and bonds by moving a portion of their cash and fixed income portfolios into Guaranteed Payout Contracts™ (GPCs).
Why GPCs Make Sense Now
|Owning a GPC can provide preservation of capital during volatile markets which is key to protecting your retirement savings.|
|Owning an asset such as a GPC, which is not correlated to the stock and bond markets can provide diversification.|
|People are living longer and longer, and we be believe that a GPC can be a great way to turn your longevity into an opportunity.|
|This opportunity will not last forever.|
Notice of Disclosures
- Life Expectancy Assumptions: Life expectancies used herein are estimates only. 60 year old female life expectancy estimate was obtained using the Society of Actuaries VBT 2014 RR100 ALB Select & Ultimate Rates, modified to reflect good health & a high net worth using 85% of Standard mortality, and continued improvements in mortality of 0.35% a year.
- Initial Walk Away Account Balance: $1,000,000.00 minus any applicable surrender charges. Once you receive your first GLIC payout you will lose access to your Walk Away Account balance. However, you will maintain your Residual Death Benefit.
- Principal Protection & Guarantees: You will never be credited with a negative return in your Fixed Interest or your S&P 500 Annual Point-to-Point Accounts which are credited to your Walk Away & Residual Death Benefit account balances annually. GLIC account options have a 0.00% performance floor.
- Growth Rate Assumptions: Growth rates used herein are hypothetical estimated projections only. The Walk Away & Residual Death Benefit Account balances growth rate is projected at 2.12% which was calculated assuming an average rate of return in the Indexed S&P 500 Annual Point-to-Point Account of 3.12% (S&P 500 10-year lookback from 08/01/2016 with a 4.00% Cap); minus annual rider fees of approximately 1.00%. Variations in account performance have no impact on your GLIC payout and only affect your Walk Away & Residual Death Benefit Account balances.
- Rate of Return Projections: Rate of Return projections may be affected by the time of death and/or by the performance of your Walk Away & Residual Death Benefit Account balances.
- Liquidity Options: GLIC contracts generally allow you to withdrawal up to 10% of the Walk Away Account balance free of any surrender charges. This will vary by contract, so please confirm this provision with your particular contract. You may surrender or cancel the entire contract and receive back your Walk Away Account balance minus the applicable surrender charge. You may accelerate or delay the date to receive your first GLIC payout but this will affect your GLIC payout amount. In the event of death the Residual Death Benefit will be calculated by taking the Residual Death Benefit Account balance at the time of death and subtracting that by the sum of all of the GLIC payouts received, no surrender charges will apply.
- Potential Risk Factors: Anytime you enter into a contract with another party you assume some counter party risk. Rider fees may be charged against your Residual Death Benefit & Walk Away Account balance in the event the performance of your account performance is less than the approximately 1.00% annual rider fee. However, rider fees charged have no impact on your GLIC payout. Other risks may apply.
- General Notices: The rates referenced herein may change at any time. Surrender Charges, Taxes, and other factors may apply.
- For Informational Purposes: This information may help you analyze your financial needs and investment opportunities. It is based on information and assumptions provided by you and other sources deemed to be reliable. However, we cannot guarantee its accuracy and recommend you do not rely on this presentation as your only source of information. The insurance company, licensed insurance agent, and IMS Associates assume no fiduciary responsibility. This presentation is not a binding contract and your signature is not a commitment to purchase any financial product or annuity. To formally apply to bind a contract sign insurance carrier paperwork and an official insurance carrier quote.
- Tax & Legal Notices: We do not provide Legal or Tax advice. Please consult independent counsel for Legal or Tax advice. U.S. Treasury Circular 230 Notice: Any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties that may be imposed under the Internal Revenue Code or by any other applicable tax authority; or (2) promoting, marketing or recommending to another party any tax-related matter addressed herein.