Imagine you’re a poor orphan, like “Little orphan Annie” and a rich high society person comes along and establishes a trust fund for you. The money in the trust will provide income for you and your spouse as long as you both are alive. “Wow,” you say; “do you mean, I won’t ever have to worry about money? That I won’t have to worry about losing money… or anything; that I’ll receive a monthly allowance, forever?” The answer is absolutely, “yes!” The bad news is that Daddy Warbucks is not likely to be visiting you any time soon; the good news is that you can become your own Daddy Warbucks! Instead of chasing the “promised gold ring” of the stock market, you can establish your own Daddy Warbucks trust for yourself! The results will be exactly the same! This annuity offered by an A-plus company over 150 years old will provide you and your spouse with a never ending stream of income for you and your spouse forever, just like a pension; you can’t run out of money because every month you’ll get a check in the mail, just like having another Social Security check. You can’t lose the money, since every penny is guaranteed, safe and secure!
The annuity starts with a 20% up-front bonus which means whatever your initial investment is, it will immediately be increased by 20%! You can start receiving your lifetime payments immediately if you wish. In the event you’re able to delay the start of your income payments until the fifth anniversary, you’ll receive a second 20% bonus. If you can defer the start of your income until the 10th anniversary, you’ll receive a third 20% bonus. A hypothetical $100,000 will become $120,00 on day one; your investment is guaranteed to be at least $140,00 on the 5th anniversary and $160,000 by the 10th anniversary. Interest earned will be linked to the performance of the S&P 500 stock market index. Your money is always held safe, secure and guaranteed at the insurance company that issues this annuity and is never at risk. Whenever the index goes up for the year, you’ll get the majority of the gain (for the first year, you get everything but one half of one per cent); When the S&P 500 is down for the year, you suffer no loss, since your money is never invested or at risk. When year-end interest is credited to your account, the interest is locked in and you can never lose it. Should you ever find yourself in a long term care facility your lifetime income will double for up to five years in order to help you defray the cost of long term care!
In the event of your death, every penny in the annuity, including the twenty per cent bonuses pass immediately (bypassing probate) and directly to your beneficiaries. The issuing insurance company never keeps the money. Never in history has anyone ever lost a penny in this type of annuity called a “Fixed indexed annuity,” the ultimate in retirement security!
To summarize, this annuity provides you with guaranteed income for life for you and your spouse, the ability to profit from the stock market with a guarantee against loss and a guaranteed 60 per cent return on your money! Additionally you have a way of handling the risk of paying for long term care, at no cost.
There is an annual fee in the annuity of 1.2%. As long as a lifetime income is taken at any time or you should die, the bonuses will be awarded to you or passed along to your beneficiaries. Should you cash in your annuity and walk away with the money prior to the start of your lifetime income, the bonuses will not be awarded, although all of your principal and credited interest will be provided, subject to any premature withdrawal penalties.
Jerry Rubin
Retirement & Legacy Planning
Age minimum: 40 maximum: 79
Recent Comments