If you want to convert your assets into an income stream that you can’t outlive, Assurity’s Encore Annuity may be your best option.
A single-premium deferred fixed annuity contract, the Encore plan is a great way to accumulate money for retirement since your principal and interest grow tax-deferred until distribution.
As retirement nears, you will have to decide how to best manage your assets, whether they are from a 401(k), 403(b), Individual Retirement Account (IRA), Simplified Employee Pension (SEP), the sale of your home or business, or an inheritance.
Planning is important since you don’t want to underestimate your lifespan or the money you will need to cover all of your expenses.
Find the best guaranteed annuity rates for your retirement!
An Encore Annuity provides many advantages
Up to 12 percent yearly may be withdrawn without surrender charges
- No front-end maintenance or handling fees
- $2,000 minimum initial contribution
- Supplemental contributions may be added to increase the value of your annuity during the first 12 months.
- Federal and state income taxes on the interest income are deferred until you begin withdrawals from your annuity.
- Issue ages through age 85
- The cost, delay and publicity of probate for your heirs may be avoided for annuity values.
- Interest rate guarantee of 1 percent (for policies issued in 2020)
- During the first two years you own your Encore Annuity, you may (or may not) earn an interest rate bonus, not to exceed 1.5 percent, in addition to the base interest rate.
Any bonus interest paid would provide you with faster annuity growth.
If you choose to diversify your retirement assets, establishing an annuity to help pay your daily living expenses – housing, food, utilities, transportation, health insurance, co-pays, and prescriptions – may be a good choice.
You can feel secure in knowing your most basic needs may be met.
Purchase Options
The Encore Annuity is available as a qualified or non-qualified plan.
An Encore Qualified Annuity is purchased with transfers from an IRA, 401(k), 403(b), SEP, etc., or with current pre-tax income.
- Funds deposited may be tax deductible at purchase.
- Taxes are assessed on the principal and interest earned as they are paid out.
- Distributions may be taken beginning at age 59½. For distributions prior to age 59½, tax penalties may apply.
- Distributions must begin the year you turn age 72.
An Encore Non-Qualified Annuity is purchased with after-tax dollars – personal savings, bank CDs, money from the sale of a home or business, an inheritance or insurance benefit.
- Funds deposited are not tax-deductible at purchase.
- Taxes are assessed on only the interest (not the principal) at distribution.
Pay-out Options (After Maturity)
Life income
Payments as long as you live.
Payments stop with your death.
There is no residual cash value in the annuity after your death, and your beneficiaries receive no funds.
Fixed period
equal payments for a fixed number of years (not to exceed 30 years).
These payments may be increased by additional interest accrued.
Life income with guaranteed period
Payments for your life.
If you die before the end of the guaranteed period, your beneficiary may choose to receive the balance of the annuity payments or a lump sum.
Additional pay-out options may also be available.
Withdrawal options
In your retirement, what if you want to take a cruise or buy something fun?
You may withdraw, free of surrender charges, up to 12 percent of your account balance in each 12-month period.
No surrender charges for withdrawals (before maturity):
Your entire account balance is available to you without surrender charges:
- In the ninth and subsequent policy years
- If you become totally disabled prior to age 65
- After 30 days of consecutive nursing home confinement
- Upon your death (except when a contract is jointly owned)
Retirement Income Planning
If you’re spending the interest from a CD or a fixed annuity to supplement your retirement income, consider a deferred annuity with a lifetime income rider. These annuities would offer a guaranteed income for life (even if the annuity ran out of money), removing the concern of making your money last in retirement and running out of money.
Some lifetime income riders offer a retirement income that increases to keep up with inflation, help pay for long-term care expenses, and offer an enhanced death benefit to help your beneficiaries.
About Assurity
