With a Global Atlantic SecureFore 5 fixed annuity, we can help you build a predictable and flexible retirement strategy that allows you to live your retirement on your terms.
The modern retirement landscape has changed, bringing with it a new set of rules for pursuing a comfortable retirement.
Today, pensions are disappearing and people cannot rely solely on Social Security.
Retirees have a greater responsibility for providing their own reliable and predictable income streams.
When you wonder what to do about your retirement, remember that you can count on your financial advisor and on us.
We’re here to help you understand your retirement planning options in a changing environment, empowering you to own your financial future.
Global Atlantic is formerly known as Forethought Life and Annuities.
What is a fixed annuity?
What is a Fixed Annuity? A fixed annuity is an insurance product intended to provide for retirement and other long-term financial needs. A fixed annuity can be an ideal financial product for people who have sufficient liquid assets to cover living expenses and unexpected emergencies, such as medical bills.
Why is the SecureFore 5 fixed annuity right for me?
Your money needs to last as long as your retirement.
With a Global Atlantic SecureFore 5 fixed annuity, your retirement savings can grow steadily without being subject to stock market risk.
SecureFore 5 allows you to access your money if you need it while providing the opportunity to generate a stream of retirement income that you cannot outlive.
A tax-deferred fixed annuity offers these advantages:
- Fixed interest rates and guaranteed growth
- Principal protection, avoiding potential loss due to stock market risk
- Tax-deferred interest earnings
- Convenient and flexible access to your money when you need it
- A guaranteed full contract value death benefit payable to your designated beneficiaries
- The opportunity to generate a stream of income that is guaranteed to last a lifetime
How does the Global Atlantic SecureFore 5 fixed annuity work?
SecureFore 5 offers you the potential to grow your retirement assets without the risk of stock market declines.
It works to maximize your retirement income in two ways: guaranteed growth and tax deferral.
Guaranteed growth
With SecureFore 5, your contract growth is predictable.
The interest rate schedule is locked in for three years.
After the initial guaranteed rate period expires, a renewal rate will be declared and guaranteed for one year.
This will occur at the beginning of each subsequent contract year.
Tax-deferral
Your contract value grows on a tax-deferred basis, which means your money can grow faster since you will only pay taxes on your interest earnings when you take withdrawals or income payouts.
Your earnings stay in your annuity contract until they are withdrawn, allowing you to benefit from interest on your original purchase payment and your earnings.
Withdrawals of taxable amounts are subject to ordinary income tax and may be subject to a 10% federal income tax penalty if taken prior to age 59½.
What if I need to access my money?
We understand that your plans can change during retirement, requiring you to withdraw money from your account before you originally expected.
SecureFore 5 allows you to maintain access to your funds in several ways
Withdrawal Privileges
You can access your money at any time during the contract term by making a withdrawal.
Some withdrawals may be subject to a withdrawal charge.
Remember, withdrawals may be subject to ordinary income tax, and a 10% IRS penalty may apply to amounts withdrawn prior to age 59½.
When considering a withdrawal from your annuity, carefully review your contract to understand the effects this can have on future interest earnings.
Annual Free Withdrawals
You may make the following withdrawals without incurring withdrawal charges:
- Up to 10% of the beginning-of-year contract value each year, after the first contract year (except in year of full surrender). State variations apply.
- Any Required Minimum Distribution (RMD) imposed by the IRS on this contract, even if it exceeds the free withdrawal amount (except in the year of full surrender).
The free withdrawal amount will equal the greater of the two amounts described above.
Any withdrawals in excess of the above amounts will be subject to a withdrawal charge, not to exceed 8%.
Full Surrenders
If you need to surrender your full contract value before the end of your withdrawal charge period, you may do so.
Upon your request, we will issue a check for the entire contract withdrawal value.
Withdrawal charges will be applied to the entire amount, including any free withdrawals made during the contract year (state variations apply).
Withdrawal charges only apply within the withdrawal charge period.
Annuitization
You can use your annuity’s value to generate a regular income stream of payments through a process called annuitization.
There are several settlement options available for your contract, including those that will generate a guaranteed lifetime income.
SecureFore 5 offers principal protection and death benefit proceeds for beneficiaries.
Principal Protection
There are no monthly or annual fees for this contract. 100% of the money with which you purchase your annuity is credited to your contract value (less prior withdrawals and less withdrawal charges on any prior withdrawals).
The money is 100% guaranteed if held to the end of the withdrawal charge period.
Death Benefit
Your beneficiaries are eligible to receive a death benefit equal to the full contract value without incurring any withdrawal charges.
Upon your death, and without the potential delays and costs of the probate process, your designated beneficiaries will receive your entire contract value.
The standard death benefit allows your beneficiaries to receive a lump-sum payment or a stream of payments to be distributed during a specific period of time.
Terminal Illness Waiver
Should you suffer from a terminal illness, any withdrawal charges will be waived on any portion of the contract value that is withdrawn after the first contract anniversary.
Nursing Home Waiver
At any time on or after the first contract anniversary, if you should become confined to an approved nursing facility for at least 60 consecutive days, withdrawal charges on any portion of the contract value withdrawn will be waived.
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.
