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Add stability, reduce volatility
The power of annuities, clarified.
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
Learn how annuities can
Protect, Grow and Provide
as part of your Retirement Income
• 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
SecureLiving® Index 7
Prepare for the Unpredictable
of your bond
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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
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.
SecureLiving Index 7 Annuity and a Representative Intermediate Term Bond Fund2
2.65% 2.35% SecureLivingIndex7includesa7-yearguaranteed
N/A 5.00% SecureLivingIndex7annualpoint-to-pointcaprate;
Duration 4.8 N/A “Durationsignalshowmuchthepriceofyourbond
No Yes SecureLivingIndex7includesa107%Guaranteed
No Yes SecureLivingIndex7offersanoptionallifetime
Yes No SecureLivingIndex7chargesnoexplicitassetman-
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.
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:
Taxable As Earned
Yes No Taxes on annuity interest are deferred until withdrawn.
Can Help Reduce
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%
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
• Greater growth potential
• Protection from market
downturns and interest
• Opportunity to
©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
All guarantees are based on the claims-paying ability of Genworth Life
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
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.
Genworth Life and Annuity Insurance Company, Richmond, VA