HOW IT WORKS

Retirement insurance that guarantees you an income

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How we determine the interest you receive each year:

First, you choose to track one or a combination of the indexes below, or choose the fixed interest option.

An index tracks the overall performance of a group of stocks within an industry or market sector. We offer index tracking to help you participate in market growth without putting your money at risk in the market. You earn interest based on positive performance of the index (or indexes) you’ve selected -- but your account can never lose value due to drops in the market.

On the first day of each contract year, we set the fixed interest rate and the maximum index interest (cap) you can receive during the coming year.

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Fixed interest rate

Here, the interest you receive will be pre-determined by the fixed rate that is set for the year and credited daily. This fixed rate of interest can be reset every contract year, but it will never be less than 0.10%.

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Index interest

If you choose to earn an interest credit based on the performance of one or more indexes, your annual interest will always be between 0% and the "cap" (the maximum interest credit you can earn, even if the market performs higher). The annual interest caps for the indexes can be reset every contract year, but will never be less than 0.25%.

If you choose index interest, here's how it's credited:

  • We track the performance of the index(es) you’ve chosen from one contract anniversary to the next. (A contract anniversary is the anniversary of the day your contract began.) This is called Annual Point-to-Point Crediting. Here's how it works.
  • On the last day of each contract year, one of two outcomes are possible:
    • If the index has gone up, then you earn interest (up to your cap for that year).
    • If the index has gone down, then your interest for that year is zero – but you don’t lose any interest you’ve already received.
  • Any changes in the index throughout your contract year do not directly affect the interest you receive. We measure only the index value on your contract anniversary dates. That way, you’re insulated from the daily ups and downs of the market, and benefit from the long-term trends.
  • You have the option of changing your index and crediting options annually.

More about how Retirement Foundation ADVSM works:

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Income Calculator

Estimate your annual guaranteed income, based on your own situation and the purchase amount of your choice.

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Fees & Taxes

When you purchase an annuity through ReadySet, you pay only set, predictable fees (along with any appicable taxes).

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Ready to get started? Apply now or learn more.

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