Single Premium Immediate Annuities (SPIA)
Your personal pension. |
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The #1
concern of seniors and retirees is the risk of outliving their money.
The SPIA insures a guaranteed lifetime income with a refund guarantee
and even inflation protection. As
an independent agency FSD Financials' goal is to
provide the highest guaranteed income from
the most secure insurance companies. As a completely independent entity, we will
provide an impartial recommendation based on pricing and carrier strength. For a
quote call (800) 373-9697 or fill out our
on-line quote
request form. |
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Page Quick links:
Rates / Advantages / Product Features
/ Eligibility /
How to Apply /
Home |
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Overview - GUARANTEED
INCOME FOR LIFE |
WHAT IS AN IMMEDIATE ANNUITY
USED FORSingle Premium Immediate
Annuity (SPIA) — is a retirement income product that provides you, or
you and your spouse, with a guaranteed income amount for life or for a
set period of time. An immediate annuity is similar to a pension in that
it provides a steady, predictable income stream that's guaranteed to
last as long as you live.
- Turn a portion of your savings into a retirement income.
- Income is guaranteed with no fluctuation and no market risk.
- Get payouts for the rest of your life or for a specific
number of years.
- Receive monthly, quarterly, semi-annual or annual payouts
deposited directly into your account.
- Take the hassle out of required distributions from IRAs.
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SAMPLE RATES 04/20/2012 -
Call 800-373-9697 for
personalized illustrations! |
Lifetime Income SPIA With
100% Money Back Guarantee
Refund Death Benefit.
Income begins 1 month after deposit.
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Gender / Age |
Monthly Income |
Annual Percentage
Return P&I |
Tax Free Portion
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Male 60 |
$488.09 |
5.86% |
64%
Tax Exclusion |
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Male 65 |
$529.85 |
6.36% |
70%
Tax Exclusion |
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Male 70 |
$587.15 |
7.05% |
74% Tax Exclusion |
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Male 75 |
$658.10 |
7.90% |
80% Tax Exclusion |
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Male 80 |
$742.23 |
8.91% |
83% Tax Exclusion |
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Male 85 |
$834.02 |
10.01% |
87%
Tax Exclusion |
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Gender / Age
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Monthly Income |
Annual Percentage Return P&I |
Tax Free Portion
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Female 60 |
$465.24 |
5.58% |
68% Tax Exclusion |
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Female 65 |
$503.03 |
6.36% |
72% Tax Exclusion |
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Female 70
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$556.52 |
6.68% |
76%
Tax Exclusion |
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Female 75 |
$626.43 |
7.52% |
82% Tax Exclusion |
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Female 80 |
$714.82 |
8.58% |
88% Tax Exclusion |
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Female 85 |
$815.77 |
9.79% |
90% Tax Exclusion |
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Gender / Age
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Monthly Income |
Annual Percentage Return P&I |
Tax Free Portion
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Male 65
/ Female 60 |
$440.37 |
5.28% |
67%
Tax Exclusion |
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Male
70 / Female 65 |
$476.67 |
5.72% |
71%
Tax Exclusion |
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Male
75 / Female 70 |
$528.66 |
6.34% |
76% Tax Exclusion |
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Male
80 / Female 75 |
$593.26 |
7.12% |
80%
Tax Exclusion |
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Non-Life Fixed Period
ONLY ($100,000 Premium) |
Monthly Income |
Guaranteed Total Return
Over Term
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Tax Free Portion
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5 Year Certain ONLY |
$1,695.71 |
$101,742.60 |
98% Tax Exclusion |
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10 Year Certain ONLY |
$918.66 |
$110,239.20 |
91% Tax Exclusion |
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15 Year Certain ONLY |
$663.03 |
$119,345.40 |
84% Tax Exclusion |
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20 Year Certain ONLY |
$537.08 |
$128,889.20 |
77% Tax Exclusion |
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25 Year Certain ONLY |
$465.10 |
$139,530.00 |
72% Tax Exclusion |
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30 Year Certain ONLY |
$420.71 |
$151,455.60 |
66% Tax Exclusion |
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35 Year Certain ONLY |
$390.50 |
$164,010.00 |
61% Tax Exclusion |
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40 Year Certain ONLY |
$368.27 |
$176,769.60 |
57% Tax Exclusion |
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Annual Percentage Return P&I: This is the annual percentage needed
in any other vehicle to guaranteed the same income without out ever
running out of money! |
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Quotes may vary in some states due to
state premium taxes. |
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Various Insurance Companies Rated
(A+ or A) By A.M. Best
Based on $100,000 - Life With Installment Refund - Non Premium
Tax State
Payment will remain the same for LIFE! |
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ADVANTAGES OF IMMEDIATE ANNUITIES
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TAX FREE INCOME Non-qualified or
"after tax" monies used to purchase immediate annuity income have
something qualified plans do not. The Exclusion Ratio or amount of the
annuity payment that is not subject to income tax since it is considered
to be a return of not only interest but of original principal also known
as the "cost basis". The cost basis is the original investment and is
usually not subject to income tax when distributed from a personal
immediate annuity.
The exclusion ratio is determined by the amount of principal and
interest being returned. An account with a large amount of credited
interest will have a lower exclusion ratio than a mostly principal
payout.
For example using
sample rates from 2011, if a
60 year old male with $100,000 and a cost basis of $50,000 purchases an
annuity income for life the payment would be $594 per month of which 29%
would be tax free.
If that same 60 year old had a cost basis of $100,000 the payment is
still $594 per month however, the exclusion ratio would be 58%.
LIQUIDITY A common myth about immediate annuities is that
they offer no liquidity. Certain companies do have contracts that cannot be changed, while many others offer some type of liquidity option.
These liquidity options allow for advances or full liquidation of the
premium deposited.
OPTIONAL LIMITED BENEFITS - Must be selected at time of purchase.
- Guaranteed minimum death
benefit – the policy pays the greater of
premiums not already paid or 10% - 50% of the
initial premium.
- Nursing home rider
– increases payments by 50% if policy owner
is confined to a nursing home.
- Inflation protection/Cost
of living adjustment option – payments can
be guaranteed to
increased by 3% a year to keep pace with
inflation.
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PRODUCT
FEATURES |
Immediate Annuities have basic product groups. Within these groups are many more
guarantee income options and guarantee periods.
Click here for PDF brochure of
these features.
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Money Back Guarantee
- "If I die the insurance company keeps my
money" This has been a concern of buyers of lifetime annuities,
our SPIA program solves this concern with the money back guarantee feature.
More
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Single Life Guaranteed Income
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This option provides a guaranteed income for
one persons life. There are several types of single life immediate
annuities to fit all types of income situations. The single life annuity
also offers a guaranteed return of premium incase of premature death. More
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Joint Life Guaranteed Income
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This option provides a guaranteed income
on two lives for as long as either
annuitant is alive. When either annuitant dies, payments continue to the
survivor. The joint life annuity also offers a guaranteed return of premium
in event of premature deaths. More
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Period Certain Guaranteed Income
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This option provides a guaranteed income for a
specific time period. Specify 5 -50 years and the payments are guaranteed
for that time period and is not based on any life.
More
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Deferred Start Immediate Longevity Annuity
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Pick future retirement income start date and
guarantee it today! A specific income to begin on a predetermined date
in the future that is guaranteed for life, joint life or a period
certain. More
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Impaired Risk Age Rated Immediate
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Impaired
risk
age rated immediate annuities are medically underwritten and can increase
client income payouts! A retirement planning advantage.
More
- Inflation Protected C.O.L.A. Income
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This is a life annuity with payments that increase
or decrease by a set percentage each year.
An annually compounded increase from 1% to 5%. Initial benefit can be substantially lower than
non-COLA annuities. More |
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ELIGIBILITY
REQUIREMENTS |
OPEN TO
All clients ages 0 - 95. STATE VARIATIONS
Product is approved in all states. Not all options are available in all
states or for all issue ages.
TRANSFERS
Consider a fixed annuity if you want to transfer or rollover other older
retirement accounts. We can assist in rolling over old 401Ks or other
employer plans. We also assist in tax free exchanges for existing annuities via a 1035
exchange.
SUITABILITY
Is an annuity right for you? Do you have additional liquid assets available in
case of unseen needs? Annuities should be viewed as long-term
financial instruments.
Please be aware that withdrawal charge periods
may last from 1-10 years. These features will be clearly disclosed.
However, some companies waive the withdrawal charge in the event of
nursing home, premature death or annuitization on many of their fixed
annuity products. (Annuitization covers accumulation valued to a
guaranteed income stream.
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HOW TO APPLY |
FSD Financial is available to assist with the application process
(M-F 9am -4pm PST) 800-373-9697
- We will UPS/FedEx all paperwork with a pre-paid return
overnight envelope.
- Information provided by you on the application kit
will begin the process of issuing a contract.
- Our insurance experts will help fill out the
application kit and suitability form as answers must be complete and
detailed.
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