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157302_030715_nonsecure

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157302_030715_nonsecure

  1. 1. Add stability, reduce volatility The power of annuities, clarified. SM For decades, consumers have relied on bond mutual funds as a way to create current income and diversify their portfolio from the higher volatility associated with equities. In fact, as interest rates have generally declined since the early 1980s, many bond funds have provided solid long term returns. Today, the need for income and diversification hasn’t changed, but the interest rate environment has: many market observers expect interest rates to rise over time. As you prepare for retirement, your financial professional is likely to look for products with these characteristics: • A source of interest income for your retirement portfolio • Diversification to reduce risk • Better yield opportunities than currently available on conservative financial products Bond Funds In a Rising Interest Rate Environment Bond funds typically hold a portfolio of many individual bonds. Each bond in the portfolio will fluctuate in value as the interest rate environment changes. When rates go up, a bond’s price (and bond fund returns) will go down; if rates go down, the bond’s price will go up. Fixed Index Annuities are issued by Genworth Life & Annuity Insurance Company, Richmond, VA Genworth.com/Annuities Learn how annuities can Protect, Grow and Provide as part of your Retirement Income Planning Strategy. • Guaranteed growth if held for a specified period • Protect principal from the impact of interest rate spikes and equity market declines • Provide the opportunity for interest credits similar to or greater than many traditional fixed income vehicles Ask me about Genworth Annuity Strategies SecureLiving® Index 7 Prepare for the Unpredictable 157302 03/07/15 Value of your bond mutual fund Interest Rates Insert Name Insert Institution Insert Email Insert Phone 1 Insert Phone 2
  2. 2. 1 WallStreetJournal,Bond-Fund LossesSpurWithdrawalsinthe SecondQuarter,07/08/13;USDept ofTreasury,DailyTreasuryYield CurveRates,accessed07/24/13 2 Basedontheasset-weighted statisticsforthreelargeintermediate termbondmutualfundsasof 7/26/13.SecureLivingIndex7 annualcapandfixedratefor $100,000premium,currentas of04/21/14.Thecharacteristicsof bondfundsdescribedhereare generalinnatureandarenot intendedtorepresentanyspecific bondfund. 3 FINRA,Duration–WhatanInterest RateHikeCouldDotoYourBond Portfolio,03/2013 4 Inadditiontothesurrendercharge, ifexcesswithdrawalsorcontract surrendersoccurduringthe surrenderchargeperiod,aMarket Valueadjustment(MVA)willalso apply.Generally,inanincreasing interestrateenvironment,the MVAcouldfurtherreducethe remainingcontractvalue. Conversely,adecreasinginterest rateenvironmentcouldhavea positiveimpacttothecontract valuepaidbacktotheowner. 5 Anannualcharge,basedonyour benefitbase,isdeductedannually fromyourcontractvalueattheend ofeachcontractyear.Alternatively, youcanannuitizethecontractatany timeafterthefirstcontractyearto provideguaranteedincomeforlife orforanotherperiodofferedwithin thecontract. Fixed Income Alternative Most well-diversified portfolios include a fixed income component. Unfortunately, many bond funds have experienced losses due to recent movements in interest rate benchmarks, such as the 10-Year Treasury, recently at 2.53%, up from 1.47% a year earlier.1 With interest rates still low, but on the rise from recent historic lows, you may be concerned about how to protect the value of your fixed income portfolio without the interest rate risk associated with bond funds. Are there alternatives? The answer is yes — a SecureLiving® Index 7 annuity can add stability and reduce volatility in your overall retirement portfolio. Quick Comparison SecureLiving Index 7 Annuity and a Representative Intermediate Term Bond Fund2 Comparisons Intermediate Bond Fund SecureLiving Index 7 Comments CurrentYield (NetofAnnual ExpenseRatio forBondFund) 2.65% 2.35% SecureLivingIndex7includesa7-yearguaranteed fixedinterestratestrategyasanallocationoption. AnnualCap GrowthPotential N/A 5.00% SecureLivingIndex7annualpoint-to-pointcaprate; GrowthpotentiallinkedtochangesintheS&P500® priceindex Duration 4.8 N/A “Durationsignalshowmuchthepriceofyourbond investmentislikelytofluctuatewhenthereisanup ordownmovementininterestrates.”3 Forexample, inthiscase,a1%increaseinrateswouldgenerally reducethefundvaluebyapproximately4.8%. Changesinprevailinginterestratesdonotimpact theannuitycontractvalue. UpFrontand DeferredSales Charges/Surrender ChargeSchedule VariesbyFund andFund ShareClass 7Years SecureLivingIndex7includesasurrendercharge schedule,whichdeclinestozeroaftersevenyears. Surrenderchargesareincurredonlyiftheannuityis surrenderedorifmorethantheannualfreeamount (excesswithdrawal)iswithdrawn. SubjecttoBond FundRisks: • Risingrates • Issuerdefaults Yes No4 TheSecureLivingIndex7contractvalueisprotected fromdeclinesinvalueduetorisinginterestrates whenheldtoendofsurrenderchargeperiod. (Howeverthecapratesassociatedwithyourannuity contractmaynotincreaseinamannercomparableto theriseininterestrates;ifany.) GuaranteedGrowth ofPrincipalifHeld for7Years No Yes SecureLivingIndex7includesa107%Guaranteed MinimumAccumulationBenefitatnoadditional charge CanCreate Guaranteed LifetimeIncome No Yes SecureLivingIndex7offersanoptionallifetime withdrawalbenefitriderforanadditionalcost.5 AnnualFees/ Expenses Yes No SecureLivingIndex7chargesnoexplicitassetman- agementfeesorothercharges;(subjecttosurrender chargesandmarketvalueadjustmentifwithdrawing morethantheannualfreewithdrawalamount)
  3. 3. As you and your financial professional create and manage your retirement portfolio strategy, allocating a portion to a SecureLiving Index 7 annuity can be a wise choice. Protect your fixed income allocation from loss of value, create greater opportunities for growth potential, and guaranteed lifetime income. Genworth.com/Annuities Potential Tax Benefits for Money Held Outside of Qualified Plans Additional tax benefits may be available when you reallocate non-qualified money into an index annuity: Comparisons Bond Fund SecureLiving Index7 Comments Interest Immediately Taxable As Earned Yes No Taxes on annuity interest are deferred until withdrawn. Can Help Reduce Social Security Taxation No Yes Interest earned within a bond fund is counted as income for Social Security taxation purposes (unless held in IRA) Can Help Reduce Exposure to 3.8% Healthcare Surtax No Yes The tax deferred growth in an annuity doesn’t increase Modified Adjusted Gross Income (MAGI) nor is it considered net investment income. Thus, a deferred annuity is not impacted by the surtax unless there is a taxable distribution from the contract. This example assumes a bond fund that generates taxable income at least annually. SecureLiving Index 7 • Tax-deferral • Greater growth potential • Protection from market downturns and interest rate risk • Opportunity to create guaranteed lifetime income
  4. 4. ©2015 Genworth Financial,Inc.All rights reserved. SecureLiving® Index 7 individual single premium deferred annuity with market value adjustment and optional index interest crediting is issued by Genworth Life and Annuity Insurance Company, policy form series GA3005-1113, GA303R-1113, ICC14GA3005, and ICC14GA303R, et. al. Products and/or riders may not be available in all states or markets. Features and benefits may also vary by state or market. All guarantees are based on the claims-paying ability of Genworth Life & Annuity. The discussion of tax treatments in this material is Genworth’s interpretation of current tax law and is not intended as tax advice. You should consult your tax professional regarding your specific situation. Withdrawals may be taxable and a 10% federal penalty may apply to withdrawals taken before age 59½. The S&P 500® Index is a price index and does not reflect dividends paid on the underlying stocks. The S&P 500® Index is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by Genworth Life and Annuity Insurance Company and hereinafter referred to as “Licensee”. Standard & Poor’s®, S&P®, and S&P 500® a reregistered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Licensee. Licensee Fixed Index Annuity Product(s) are not sponsored, endorsed, sold or promoted by SPDJI, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index. Although the contract value may be affected by the performance of an index, the contract is not a security and does not directly or indirectly participate in any stock or equity investment including but not limited to, any dividend payment attributable to any such stock or equity investment. This is a brief product description. Consult the annuity contract for a detailed description of benefits, limitations, and restrictions. The contract terms and provisions will prevail. Insurance and annuity products: Are not deposits. Are not guaranteed by a bank or its affiliates. May decrease in value. Are not insured by the FDIC­­or any other federal government agency. Issued by Genworth Life and Annuity Insurance Company, Richmond, VA

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