The Benefits of  Fixed Annuities “ Presenter’s Name”   “ Presenter’s Company” Seminar and Insurance   Sales   Presentation...
<ul><li>Americans are living longer, healthier lives </li></ul><ul><li>Today’s retirees have the healthiest and most activ...
<ul><li>42% of workers (and retirees!) do not have an asset allocation plan for their retirement investments </li></ul><ul...
<ul><li>Only 19% of Boomers have a goal specifying an exact dollar amount </li></ul><ul><li>56% have a general idea of how...
And which approach are you (and your spouse) most likely to use when withdrawing money? (Workers who will withdraw from sa...
<ul><li>Experts estimate 70-80% of pre-retirement income will be needed to support a comparable lifestyle </li></ul><ul><l...
Can You Afford to Retire? Source: KAPLAN Financial, Pocket Tables, 2007 2007 Social Security Benefits <ul><li>Maximum mont...
<ul><li>In 2004, persons reaching age 65 had an average life expectancy of an additional 18.5 years </li></ul><ul><li>The ...
<ul><li>Between 30% and 40% of all healthcare expenses are incurred during the last years of life </li></ul><ul><li>The av...
What will it cost to maintain your lifestyle? Here is an example of what an assumed 3% rate of inflation can do to a $30,0...
Let’s compare fixed annuities to another popular conservative investment vehicle:  Certificate of Deposits or CD’s.   Cert...
Key Benefits: Fixed Annuities CD’s Certificates of Deposit (CDs) vs. Fixed Annuities 1  Liquidated earnings are subject to...
Certificates of Deposit (CDs) vs. Fixed Annuities 1  Liquidated earnings are subject to income tax and may be subject to a...
The Bottom Line on CDs – 1988-2007 Source:  AIM Investments, February, 2008 Inflation rates are represented by the change ...
<ul><li>Insurance product that guarantees a fixed income amount at some future time, typically retirement. 1 </li></ul><ul...
An   immediate fixed annuity   allows investors to begin receiving an income stream typically from within a month through ...
An  immediate fixed annuity  is an “able investment” Fixed Annuities *Payment of lifetime income is contingent upon the cl...
A  deferred fixed annuity  allows investors to accumulate assets on a tax-deferred basis over the long-term before receivi...
Let a Deferred Fixed Annuity  help you invest  Fixed Annuities <ul><li>Safety 1  </li></ul><ul><li>Tax-Deferral 2   </li><...
The Benefits of Tax-Deferred Compounding $93,304 Tax-deferred $72,898 After Tax  Surrender Value $66,489 Taxable The above...
Your Financial Professional Can Help You… <ul><li>Determine your current and future financial needs </li></ul><ul><li>Dete...
Massachusetts Mutual Life Insurance Company and affiliates, Springfield, MA 01111-0001 www.massmutual.com/annuities Thank ...
© 2008 Massachusetts Mutual Life Insurance Company, Springfield, MA. All rights reserved. www.massmutual.com. MassMutual F...
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The Benefit Of Fixed Annuity

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The Benefit Of Fixed Annuity

  1. 1. The Benefits of Fixed Annuities “ Presenter’s Name” “ Presenter’s Company” Seminar and Insurance Sales Presentation 1208 RI01146 710 Retirement Income Strategies Not A Deposit Not Bank Guaranteed May Lose Value Not Insured By FDIC Or Any Federal Government Agency
  2. 2. <ul><li>Americans are living longer, healthier lives </li></ul><ul><li>Today’s retirees have the healthiest and most active retirement of any generation </li></ul><ul><li>Retirees face formidable financial challenges </li></ul>Source: U.S. Government Administration on Aging “A Profile of Older Americans: 2005” Retirement Facts
  3. 3. <ul><li>42% of workers (and retirees!) do not have an asset allocation plan for their retirement investments </li></ul><ul><li>29% of workers rebalance their portfolios less than once a year </li></ul><ul><li>Only 42% of workers describe themselves as feeling very prepared for retirement </li></ul>Source: OppenheimerFunds Investing for Retirement Survey, 2004 Pre-Retirees Have Not Planned Well At All
  4. 4. <ul><li>Only 19% of Boomers have a goal specifying an exact dollar amount </li></ul><ul><li>56% have a general idea of how much they need, but not a specific dollar amount </li></ul><ul><li>While 50% of workers expect to live on less, 68% of retirees actually spend at least as much as before </li></ul>Source: OppenheimerFunds Investing for Retirement Survey, 2004 Pre-Retirees Lack Specific Goals…
  5. 5. And which approach are you (and your spouse) most likely to use when withdrawing money? (Workers who will withdraw from savings/investments n=990) And which approach did you (and your spouse) use when withdrawing money? (Retirees who withdraw from savings/investments n=232) Yet, both workers and retirees manage their savings using the simplest of strategies. Source: Employee Benefit Research Institute and Mathew Greenwald & Associates, Inc., 2006 Retirement Confidence Survey Take what you need to cover your expenses Try to have your savings untouched for as long as possible Take only the earnings on your investments Take a constant percentage or constant amount of money Don’t know/Refused 36% 35% 31% 33% 18% 17% 10% 8% 6% 8%
  6. 6. <ul><li>Experts estimate 70-80% of pre-retirement income will be needed to support a comparable lifestyle </li></ul><ul><li>Health care expenses tend to rise with age </li></ul><ul><li>Low interest rates affect savings growth </li></ul><ul><li>Inflation will erode purchasing power </li></ul><ul><li>Taxes do not go away </li></ul>The Truth About Retirement Costs Source: OppenheimerFunds, Investing For Retirement Survey, 2004
  7. 7. Can You Afford to Retire? Source: KAPLAN Financial, Pocket Tables, 2007 2007 Social Security Benefits <ul><li>Maximum monthly benefit: $ 2,116 </li></ul><ul><li>Maximum annual benefit: $25,392 </li></ul>
  8. 8. <ul><li>In 2004, persons reaching age 65 had an average life expectancy of an additional 18.5 years </li></ul><ul><li>The older population (65+) numbered 36.3 million in 2004, an increase of 3.1 million (or 9.3%) since 1994 </li></ul><ul><li>By the year 2030, the older population will more than double to 70 million </li></ul>Longer Life Expectancy Source: A Profile of Older Americans: 2005 Based on data from U.S. Bureau of the Census, Administration on Aging
  9. 9. <ul><li>Between 30% and 40% of all healthcare expenses are incurred during the last years of life </li></ul><ul><li>The average annual cost of nursing home care can exceed $50,000 + </li></ul><ul><li>38% of Medicare beneficiaries need some care in a nursing home in the year of their death </li></ul><ul><li>Medicare does not pay nursing home benefits </li></ul><ul><li>The availability of employer-sponsored retiree health benefits continues to decline </li></ul>Higher Medical Costs Source: American Health Care Association, 2007
  10. 10. What will it cost to maintain your lifestyle? Here is an example of what an assumed 3% rate of inflation can do to a $30,000 per year standard of living. Be prepared to double your money if you’re retired for 25 years!! Inflation Matters This hypothetical example is for illustrative purposes only. 5 Years $34,778 10 Years $40,317 15 Years $46,739 20 Years $54,183 25 Years $62,813
  11. 11. Let’s compare fixed annuities to another popular conservative investment vehicle: Certificate of Deposits or CD’s. Certificates of Deposit (CDs) vs. Fixed Annuities What is a CD? An investment issued by banks that generally pays interest and is insured by the FDIC or the NCUA up to $250,000 per depositor. What is a Fixed Annuity? An insurance vehicle designed for conservative investors who may benefit from receiving a guaranteed rate of return. Guarantees are subject to the claims paying ability of the issuing company or companies.
  12. 12. Key Benefits: Fixed Annuities CD’s Certificates of Deposit (CDs) vs. Fixed Annuities 1 Liquidated earnings are subject to income tax and may be subject to a surrender charge. If taken prior to age 591/2, a 10% federal income tax penalty may apply. * Fixed annuity guarantees are based on the claims paying ability of the issuing companies or company. ** Annuities do not provide any additional tax advantage when used to fund a qualified plan. Restrictions may apply. Guaranteed Returns*   FDIC/NCUA Insured  Free Withdrawals1  Choice of Investment Period  Provides Stream of Income*  Tax Deferral** 
  13. 13. Certificates of Deposit (CDs) vs. Fixed Annuities 1 Liquidated earnings are subject to income tax and may be subject to a surrender charge. If taken prior to age 591/2, a 10% federal income tax penalty may apply. * Fixed annuity guarantees are based on the claims paying ability of the issuing companies or company. **Annuities do not provide any additional tax advantage when used to fund a qualified plan. Restrictions may apply. Key Benefits: Fixed Annuities CD’s Choice of Investment Period  Provides Stream of Income*  Tax Deferral**  Guaranteed Returns*   FDIC/NCUA Insured  Free Withdrawals1 
  14. 14. The Bottom Line on CDs – 1988-2007 Source: AIM Investments, February, 2008 Inflation rates are represented by the change in the Consumer Price Index and CD Rates are six-month certificates of deposit rates. Returns are net of annualized average monthly top federal income tax rates. Adjusted rate of return is equal to (CD rate minus inflation rate) minus (CD rate x tax rate). This chart is for illustrative purposes only and does not predict or depict the performance of any investment.
  15. 15. <ul><li>Insurance product that guarantees a fixed income amount at some future time, typically retirement. 1 </li></ul><ul><li>There are two types of fixed annuities </li></ul><ul><ul><li>Immediate fixed annuities </li></ul></ul><ul><ul><li>Deferred fixed annuities </li></ul></ul>Fixed Annuities 1 Guaranteed income is based on the claims paying ability of the issuing company or companies.
  16. 16. An immediate fixed annuity allows investors to begin receiving an income stream typically from within a month through up to a year after the purchase of the product. Fixed Annuities Payment of lifetime income is contingent upon the claims paying ability of the issuing company or companies.
  17. 17. An immediate fixed annuity is an “able investment” Fixed Annuities *Payment of lifetime income is contingent upon the claims paying ability of the issuing company or companies. It’s Predict able : <ul><li>You know when & how much income is coming </li></ul>It’s Reli able : <ul><li>Your income stream can last as long as you live, or for a period of time, or a combination of both* </li></ul>
  18. 18. A deferred fixed annuity allows investors to accumulate assets on a tax-deferred basis over the long-term before receiving an income stream. * Fixed Annuities * Payment of lifetime income is contingent upon the claims paying ability of the issuing company or companies. Annuities do not provide any additional tax advantage when used to fund a qualified plan. Investors should consider buying an annuity to fund a qualified plan for the annuity’s additional features such as lifetime income payments and death benefit protection.
  19. 19. Let a Deferred Fixed Annuity help you invest Fixed Annuities <ul><li>Safety 1 </li></ul><ul><li>Tax-Deferral 2 </li></ul><ul><li>Yield </li></ul><ul><li>Liquidity 3 </li></ul><ul><li> </li></ul>1 Guarantees are contingent upon the claims paying ability of the issuing company or companies. 2 Annuities do not provide any additional tax advantage when used to fund a qualified plan. Investors should consider buying an annuity to fund a qualified plan for the annuity’s additional features such as lifetime income payments and death benefit protection. 3 Liquidated earnings are subject to income tax and may be subject to a surrender charge. If taken prior to age 591/2, a 10% federal income tax penalty may apply.
  20. 20. The Benefits of Tax-Deferred Compounding $93,304 Tax-deferred $72,898 After Tax Surrender Value $66,489 Taxable The above illustration is hypothetical and does not represent any particular investment. This chart shows the value of $35,000 earning an effective annual pre-tax return of 4% in a taxable investment and a comparable tax-deferred investment over a period of 25 years, with no distributions. Combined state and federal tax bracket assumes 35% for entire period. Tax-deferred products may impose surrenders charges and other fees such as investment management fees. Since charges and fees are not reflected in the illustration, the performance numbers illustrated would be reduced if included. Distribution of tax-deferred accumulations are subject to income taxes and may be subject to surrender charges and, if taken prior to age 59 ½, 10% federal income tax may apply. $35,000 Annuities do not provide any additional tax advantage when used to fund a qualified plan. Investors should consider buying an annuity to fund a qualified plan for the annuity’s additional features such as lifetime income payments, living benefits and death benefit protection. Lower maximum tax rates on capital gains would make the return of the taxable investment more favorable, thereby reducing the difference in performance between the accounts shown. Consider your personal investment horizon and income tax bracket, both current and anticipate, when making an investment decision as these may further impact the results of the comparison.
  21. 21. Your Financial Professional Can Help You… <ul><li>Determine your current and future financial needs </li></ul><ul><li>Determine a retirement strategy that is right for you </li></ul><ul><li>Find solutions to help address your needs </li></ul>We’ll help you get there. SM Schedule a no obligation appointment today!
  22. 22. Massachusetts Mutual Life Insurance Company and affiliates, Springfield, MA 01111-0001 www.massmutual.com/annuities Thank You Annuity products are issued by Massachusetts Mutual Life Insurance Company and C.M. Life Insurance Company. C.M. Life Insurance Company is non-admitted in New York and is a subsidiary of Massachusetts Mutual Life Insurance Company. C.M. Life Insurance Company, 100 Bright Meadow Boulevard, Enfield, CT 06082 Annuities offer risk management features including income for life and death benefits. All guarantees, including the guarantee of lifetime income, are subject to the claims-paying ability of the issuing company. Annuities also offer tax deferral but do not provide any additional tax advantage when used to fund a qualified plan. Investors should consider buying an annuity to fund a qualified plan for the annuity’s additional features such as lifetime income payments and death benefit protection.
  23. 23. © 2008 Massachusetts Mutual Life Insurance Company, Springfield, MA. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives.

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