 |
|
Triple Their Income, Double Their ‘Fun’ With an Immediate Annuity |
|
|
By Ralph Brownell |
|
|
|
This is a story about Helen, a 70-year-old widow who lives comfortably on Social Security, as well as modest pensions from both her and her deceased husband’s former employers.
Helen lives frugally, but she also likes to have a little fun. She has $100,000 set aside in a CD, which she draws on each year for a trip to Vegas with her friends. These interest-only withdrawals from the nonqualified funds in her CD yield about $2,050 per year — the equivalent of $170 month — and are 100 percent taxable.
|
|
|
| Income From Helen’s $100,000 Nonqualified Savings |
|
|
| |
CD (Annual Percentage Yield) |
SPIA (Internal Rate of Return) |
| Rates of Return |
2.05%
national average APY for a 1-year CD1 |
4.89%
IRR 5/22/2008 |
| Monthly Income |
$170 per month
or $2,050 per year |
$665 per month
or $7,980 per year2 |
| Taxable |
Yes
100% of interest earned is taxable |
Partially
70% of payments are excluded from tax |
| |
|
|
Helen was recently diagnosed with a medical condition that requires expensive prescriptions. Her monthly out-of-pocket medical expenses now cost her almost as much as the amount she withdraws from her CD each year. Helen must have her meds, but doesn’t want to give up the bright lights of Las Vegas.
What if you could show her how to more than triple her monthly income to $665 per month and lower her tax bite to boot? With a single premium immediate annuity (SPIA), Helen would have almost twice as much mad money for her trips to Vegas and could also cover the costs of her new medicines. Plus, an exclusion ratio of 70 percent means only 30 percent of her SPIA income would be taxable.
She would have the peace of mind of knowing she has a monthly stream of income she could never outlive. She could even opt for annual increases that can help keep up with the cost of living. But, if she were to die unexpectedly, the "installment refund" rider would return any unused portion of the original $100,000 to her beneficiaries.
You can go online with Symetra Express to get a quote in seconds for Symetra Advantage Income Annuity, or contact the Sales Center at invest@symetra.com or 1-800-706-0700.
| |
|
|
1 BanxQuote.com,1-year CD national average as of 9/12/2005.
2 Based on a Symetra Express quote for Symetra Advantage Income Immediate Annuity, with Installment Refund rider, as of 5/22/2008.
|
|
|
|
|
|
|
|
|
|
|
|
