Retirement is a time of endless possibilities. To live the retirement you envision, you’ll want to make sure you have the financial resources to achieve your goals. Recognizing the challenges that lie ahead – particularly market volatility, inflation, and longevity – will help you create a retirement income strategy to last throughout your lifetime.
As you examine your strategy, consider the following:
- Do I have an adequate guaranteed income stream to cover my basic living expenses (i.e., food, clothing, housing, insurance, etc.)?
- Will I be able to maintain my standard of living throughout retirement, especially if the market drops or I live longer than my savings last?
- Would having an additional source of guaranteed income help me pursue the retirement I envision?
Depending on your answers, you may want to consider adding an annuity to your retirement portfolio.
With the Retirement Foundation ADV Annuity you can grow your nest egg, protect your savings from market drops, and enjoy guaranteed income for the rest of your life. As someone who has been involved in the annuity industry for more than 25 years, here’s what makes the Retirement Foundation ADV Annuity a valuable addition to a retirement income plan.
You’ll enjoy tax-deferred growth while protecting your savings. Accumulation potential (the earning of interest) begins as soon as you purchase the annuity. You can choose how you earn interest with a fixed rate (set by Allianz Life) or through an external market index (S&P 500© Index, Russell 2000© Index, Nasdaq-100© Index, Barclays US Dynamic Balance Index II©).
At the end of each contract year, we calculate the indexed interest. If the result is positive, your contract value will increase. If the index is negative, your contract value holds steady. Your money grows faster because you don’t pay taxes on the interest earned until you withdraw money or start receiving income from your contract.
You’ll continue to earn interest, with an option for increases, after you start receiving retirement income. Very few annuities offer both a level option and an option with the opportunity for increasing income withdrawals. With option 1, your initial payments are higher and you’ll receive the same predictable income payments year after year, no matter what’s happening in the markets. With option 2 your payments start slightly lower than option 1, but you receive permanent increases each year the annual index return is positive.
You can leave a legacy to your loved ones. And if you’ve chosen either of the two withdrawal options I just described, after income begins, the beneficiary would receive any remaining accumulation value as the death benefit.
Rest assured our guarantees are backed by the financial strength of Allianz, the second largest insurer in the world. We invest your money – along with millions of other contract owner's – in high-grade fixed income assets (99% have Very Strong or Higher ratings from Standard & Poor). Our goal is steady, reliable performance over the long term. With our global risk management expertise, we are able to offer more interest potential while maintaining the guarantee.
You can purchase the Retirement Foundation ADV Annuity directly through ReadySetSM. Allianz Life created ReadySet to provide information, tools, and resources to individuals and families who prefer do their own retirement planning.
Since you are doing the work yourself, without the guidance of a financial professional, you get additional benefits at a lower cost. If you decide you want help from a financial professional, our Agent Locator or the ReadySet support center can help with a referral.
As you plan your retirement, I encourage you to assess your finances to ensure you’ll have sufficient income to cover the activities you want to pursue with the people you care about most. Check out How It Works to learn more about the Retirement Foundation ADV Annuity and determine if it’s right for your retirement portfolio.
Daniel Krueger is the head of fixed index annuities for Allianz Life Insurance Company of North America. He has more than 25 years of financial services experience focused on delivery innovative solutions for Americans saving for retirement. Krueger earned a BS in management information systems from the University of Wisconsin and holds FINRA Series 6 and 26 securities registrations.