One of the biggest concerns Americans face regarding retirement is financial security, running a close second only to health care issues in a recent GHM Retirement Survey. How can you protect yourself in the face of an economic slowdown?
The reality is that people facing retirement are a lot more attracted to guarantees than is generally supposed by the financial industry. In fact, most people have under-funded their retirement and coupled with longer life expectancies and rising usage of long-term care, are concerned about making sure that they do not outlive the retirement nest egg they have created. What they are looking for is a guarantee that they will have a certain level of income, no matter what.
So, what are the options for the conservative-minded, guaranteed-income seeking investor? Annuities. While insurance products are not usually a big "wow", at this particular point in time they sure should be! Consider this: assuming that bonds are paying 5 percent, it will take $240,000 to produce $1,000 of income per month. However, a married couple, both age 70, can purchase a Single Premium Immediate Annuity from Navy Mutual and provide themselves with $1,000 a month for as long as one is living, at a cost of only $145,000, at today's rates. That's a difference of $95,000 and this couple would still have the security of the guaranteed income and the freedom to do something else with the money they saved by choosing the annuity over bonds.
A Single Premium Immediate Annuity is a great way to provide a guaranteed monthly income. There is more to it than just that. Since we charge you no sales fees or commissions, your money all goes to work for you. Even better, you do not need to make complicated investment choices. An annuity will provide the convenience you are seeking while still offering competitive rates and flexible payment options. An annuity can provide you with the financial freedom you need to invest more aggressively in other areas thus increasing your overall portfolio and enhancing your estate. The steady income it provides can allow you to focus your attention on other opportunities in life.
Retirement is certainly changing. Today we focus on maximizing enjoyment from our lifestyles. As people age, portfolios tend to get increasingly conservative with investors switching away from more aggressive stock choices and into bonds. What needs to be considered is the portfolios ability to provide the security and the returns needed to last through a long retirement. It is time to focus on the use of immediate annuities instead.
Not Ready to Withdraw from Your Investments?
OK, this all sounds very reasonable and makes economic sense, but what if you do not need the income right now? We have the right solution for you too - a deferred annuity. Diversify your portfolio, with very little risk, and provide steady growth at better rates of return then most other conservative investments. Competitive interest rates are only the beginning. Bonus premiums are available as well as flexible savings options. With a deferred annuity, all of the growth is tax-deferred, so your money will keep growing tax-free until you actually need to use the funds in the future. Since Navy Mutual does not charge sales fees, commissions or loads, all the growth is yours to keep and Navy Mutual guarantees the safety of your principle 100 percent.
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Many other investments oriented toward retirement require that you start to withdraw money, whether you want the money now or not. For example, a Tradition IRA and 401K plans require that you begin making withdrawals by age 70. A deferred annuity allows you to keep your money in a tax-deferred status until you are ready for it. Consider this: Assuming you invest $100,000 into a Navy Mutual tax-deferred annuity at 5 percent, after 15 years you will have accumulated approximately $207,000. If you put that same $100,000 into a taxable account earning the same rate and paid taxes at the 25 percent rate, you would only have around $173,000. If they want to start taking payouts, they have a variety of options, or they can keep the annuity in place. The financial freedom of choice is theirs to enjoy.
If you think an annuity may be right for you, please contact a membership representative at 800-628-6011 or e-mail counselor@navymutual.org. Let Navy Mutual be your safe haven.
