Our philosophy at Statewide Retirement Planning Co. is to work with our clients through education and information. We feel strongly that this approach will enable our clients to make better and more informed decisions. With this in mind, we have decided to send out a regular newsletter filled with information regarding all aspects of retirement and the retirement planning process. We hope that you enjoy reading these newsletters and are able to use the information to make your retirement years more secure and enjoyable than it otherwise might be.
Please feel free to forward copies to your family and friends.

Why Index Annuities over the Stock Market?

With an Index Annuity your money is placed into investment grade bond portfolios and the money is 100% secure,* backed by reinsurers with dollar for dollar kept in reserves.

The interest (only) earned from the bond portfolio is invested into a major index, such as the S&P500, NASDAQ, or the DOW Jones. Therefore, you have the potential to participate in market gains without any risk to your principal. (The principal is in the secure bonds)

If the market goes up in a given year, the insurance company uses those gains to buy more bonds. Once they credit your account with the market-index linked gains, you can never lose your new principal … even if the market crashes!
But there are a few negatives with these accounts...

The insurance companies that sell Index Annuities may limit your gains in 3 basic ways: Note: The gains are limited in order to guarantee that you will not suffer losses.

A “Cap” is like a ceiling. For example, if a company has a 10% cap; so, if the market gains 22%, the most you are credited is 10%. If the market loses 10%, your account does not suffer the loss.  You would never lose principal.

A “Margin” is a fee that you will pay if the market makes money. That means if the market gains 2% and your margin is 2%, then you’ll see no gain, but you won’t lose principal in a market downturn. If the market gains 15%, you would be credited 13%, but, once again, you won’t lose any principal in a market downturn.

A “Participation Rate is best explained with an example. If the market rose 10% in a given year and the participation rate is 80%, you would be credited 8% (because 8% is 80% of 10%). And of course, if the market went down, you would lose nothing.

Even with these limitations in place, it’s easy to see why I Index Annuities are a smarter vehicle for use as an income source than the stock market. (Upside potential with no downside risk)

Contact us for more information on how to out-perform the S&P 500 like we have done for the last 12 years. Also find out why it may be a mistake to withdraw money from the market during retirement, and how to avoid the potentially biggest financial danger facing retiring Americans, running out of money before running out of life.

Call us now at (954) 781-2220 or fill out this short survey to find out more about how you might receive guaranteed* income for life and protect your principal at the same time!

Call Statewide Retirement Planning Co. at (954) 781-2220 or Fill out the short survey HERE. That will put you in touch with a licensed advisor who specializes in retirement income planning. ASSET PROTECTION INCOME PROTECTION LEGACY PLANNING HEALTHCARE PLANNING

* Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer.

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