Insurance agents who utilize Wealth Ladders strategies are independent business owners. They are not agents of, and are not affiliated with, Wealth2k, Inc. Neither Wealth2k, Inc. nor your insurance agent gives legal, tax or accounting advice. The information contained herein is based on our understanding of current laws as they relate to annuities. These laws are subject to change in the future. Please consult your personal legal or tax advisor for any needed legal, tax or accounting advice.
Wealth2k, Inc. does not recommend or endorse any specific annuity contracts. The presentation is of a general nature and is only intended to explain how various types of immediate, traditional fixed and fixed indexed annuities may be used to provide a combination of retirement income and cash accumulation. This presentation is not intended to explain the costs, benefits, and features of these annuities, or how any of these annuities work. Fixed and fixed indexed annuities are designed to meet long term needs for retirement income. They provide guarantees against the loss of principal and credited interest, and the reassurance of a death benefit for beneficiaries.
Withdrawals of all or part of the value from your deferred annuities before the end of the surrender charge period of the contracts may result in surrender charges and/or other contract penalties. This could result in the loss of all or part of the fixed or indexed interest credited to the annuities as well as the loss of all or part of any bonus, and a partial loss of principal (the premium you used to purchase the annuity). Withdrawals are subject to ordinary income tax and, if taken before age 591/2, a 10% federal tax penalty. Annuity contracts have costs, fees, surrender charges, and other penalties for early withdrawal. Be certain that you understand these costs. Licensed insurance agents are required to provide detailed disclosure of costs associated with the purchase of annuity contracts. Bonus annuities may include higher surrender charges, longer surrender charge periods, lower caps, higher spreads, or other restrictions that are not included in similar annuities that don’t offer a bonus feature.
Lifetime income benefits from a fixed indexed annuity or traditional fixed annuity may be provided under the terms of a guaranteed minimum withdrawal benefit (GMWB). This benefit may be included at no additional charge as part of the annuity contract, or may be added to the contract by a rider. Such riders may have an additional cost. You should ask your insurance agent for a detailed explanation of the cost of any such rider, and of the terms and conditions under which such riders provide income benefits. You may be required to own your annuity for a deferral period of several years before you can begin income withdrawals under a GMWB. This deferral period (if any) will be determined by the terms and conditions of the fixed or fixed index annuity contract and/or rider. Annuities offering guaranteed minimum withdrawal benefits may provide separate and distinct accounting for accumulation value and income withdrawal value. If the contract is surrendered, either before or after income withdrawals begin, you will not receive the income withdrawal value provided by the GMWB; instead, you will receive the cash surrender value of the contract. Accumulation values may be lower, and some contracts, under certain conditions, may provide continuing guaranteed lifetime withdrawal benefits after the accumulation value is depleted, but offer no cash surrender value.
Wealth Ladders is a system designed to help insurance agents explain in general terms the benefits of fixed annuities in the context of providing guaranteed retirement income. The Wealth Ladders Website (WLStrategy.com) produced by Wealth2k, Inc. is not intended to represent the results of any specific annuity contract, and does not constitute an annuity contract or a contract or guarantee of any kind.
Tax deferred annuity contracts may offer a short term interest rate guarantee that is higher than the contractual minimum interest rate guarantee. You may not rely on this website for any indication of guaranteed accumulation values, bonuses, income, or interest rates. You may rely only on the guarantees described in the annuity contracts and illustrations provided by the company or companies issuing such annuities.
Annuities are long term vehicles designed for retirement income planning purposes. They offer guarantees to principal, tax deferral of any interest earned, the ability to receive a stream of income you can’t outlive, as well as a death benefit for your beneficiaries.
Bonus annuities may include higher surrender charges, longer surrender periods, lower caps, or other restrictions that are not included in similar annuities that don’t offer a premium (or "purchase payment") bonus. If the contract you purchase involves a bonus feature, please review the terms and conditions of the bonus carefully to ensure you understand how to receive the maximum value under the contract.
Any transaction that involves a recommendation about funds held in a security product can be conducted only by individuals currently affiliated with a properly registered broker/dealer. If your financial professional does not hold the appropriate registration, please consult with your own broker/dealer representative for guidance on your securities holdings.
This material is intended to explain the annuity laddering concept using a number of fixed annuities for a portion of your assets. It may also be possible to accomplish this concept utilizing a single annuity and partial annuitizations and withdrawals. Please discuss with your financial professional to determine which strategy better fits your needs and objectives.