In times like these, good decisions matter. And when you have a need for life insurance, you should consider whole life and its flexibility. To begin with, of course, there's the guaranteed death benefit, which can help give you peace of mind by assuring a legacy for your heirs. But there are other benefits as well.
For example, the build-up of a policy's cash value is also guaranteed, and can help to give you a reliable source of supplemental retirement income regardless of market conditions. And with all the volatility in investments markets and the economy, whole life can help make your retirement more secure. You can depend on your policy's guaranteed cash value growing to a specified amount over time(1).
And you can customize your whole life policy to fit your needs with optional riders that provide even more features and benefits(2), and even increase your whole life insurance coverage with evidence of good health(3). To make sure you get the right solution for your needs, it's a good idea to work with a trusted financial professional.
© 2010 Massachusetts Mutual Life Insurance Company.
1Distributions under the policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (cost basis). If the policy is a Modified
Endowment Contract, policy loans and/or distributions are taxable to the extent of gain and are subject to a 10% tax penalty. Access to cash values through borrowing or partial surrenders will reduce the policy’s cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured. 2Riders are available at an additional cost.3 If you own a MassMutual term life insurance policy or certain
riders, you may be able to convert your term coverage to whole life coverage without evidence of good health.
CRN201112-127917
Wednesday, July 28, 2010
Conservative Savings… Or Lifetime Retirement Income?
If you are approaching retirement, a key element of your retirement strategy may involve choosing the best way to secure a predictable source of retirement income; one that’s guaranteed to be there when you need it, for as long as you need it. As you explore ways to achieve your income goals, you may have considered a variety of conservative financial vehicles designed to protect your retirement nest egg, such as bank savings and money market accounts, certificates of deposit (CDs) or deferred fixed annuities.
Each of these investment vehicles is considered a conservative choice and each offers unique advantages. But only the deferred fixed annuity is specifically designed to provide guaranteed retirement income for your lifetime.*
All conservative accumulation products are not created equal. Let’s start with a few basics.
A deferred fixed annuity is conservative retirement vehicle that is designed to help you accumulate and protect your assets until you are ready to receive them as guaranteed income during retirement. Most deferred fixed annuities allow you to choose whether to receive guaranteed income for a specific period of time, or for your lifetime. Earnings accrue tax deferred
until they are withdrawn, allowing your contract value to take full advantage of the impact of compounding interest. Once the annuity benefit is paid, the portion attributable to earnings is taxed.
Certificates of deposit are designed to be a savings vehicle, a conservative way to save and preserve assets when your investment horizon (the amount of time you expect assets to be invested) is relatively short. An example might be saving money for a down payment on a house.
CDs typically are short-term vehicles and may not be as efficient at meeting long-term retirementneeds. Although the interest from a CD can be used as income, it’s generally necessary to holdthe CD until it reaches maturity before you can withdraw the funds without penalty. What’s more,any earned interest is taxable for the current year on an annual basis.
Insured vs. guaranteed – what’s the difference?
Both fixed annuities and CDs are considered low-risk financial vehicles because they guarantee a positive rate of return. However, these guarantees work in different ways:
• CDs are generally backed by banks and are insured for up to $250,000 for each depositor
by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union
Administration (NCUA).
• Fixed annuities are guaranteed by the issuing insurance companies, with no maximum.
They are not FDIC insured.
Be sure to ask your financial professional about an insurance company’s ratings and financial strength if you plan to purchase an annuity, because payment of lifetime income is contingent upon the claims-paying ability of the issuing company or companies.
What if you need some of your money before you retire?
Many fixed annuities allow the contract owner to withdraw a certain percentage of the contract value (typically up to 10% on an annual basis or accumulated interest) without incurring any surrender charges, although tax penalties may apply. Amounts withdrawn in excess of the specified percentage are often subject to surrender charges or adjustments. These charges
generally decline each year and expire at the end of a specified number of years. If withdrawals are taken prior to age 59 ½, a 10% federal income tax penalty may apply.
Although some CDs may include interest withdrawal provisions, investors generally must wait until the CD matures to avoid early withdrawal charges. Ask a trusted financial professional
Remember, not every conservative savings vehicle is the same. Fixed annuities offer many of the same features that make other conservative products so popular. In addition, fixed annuities offer other unique advantages that may be beneficial to you. Your financial professional can help you to choose the vehicle that best meets your retirement income objectives and investment needs.
© 2010 Massachusetts Mutual Life Insurance Company.
* Guarantees and payment of lifetime income are based on the claims paying ability of the
issuing company.
Annuity products are issued by Massachusetts Mutual Life Insurance Company, Springfield,
MA and its subsidiary, C.M. Life Insurance Company, Enfield, CT.
Each of these investment vehicles is considered a conservative choice and each offers unique advantages. But only the deferred fixed annuity is specifically designed to provide guaranteed retirement income for your lifetime.*
All conservative accumulation products are not created equal. Let’s start with a few basics.
A deferred fixed annuity is conservative retirement vehicle that is designed to help you accumulate and protect your assets until you are ready to receive them as guaranteed income during retirement. Most deferred fixed annuities allow you to choose whether to receive guaranteed income for a specific period of time, or for your lifetime. Earnings accrue tax deferred
until they are withdrawn, allowing your contract value to take full advantage of the impact of compounding interest. Once the annuity benefit is paid, the portion attributable to earnings is taxed.
Certificates of deposit are designed to be a savings vehicle, a conservative way to save and preserve assets when your investment horizon (the amount of time you expect assets to be invested) is relatively short. An example might be saving money for a down payment on a house.
CDs typically are short-term vehicles and may not be as efficient at meeting long-term retirementneeds. Although the interest from a CD can be used as income, it’s generally necessary to holdthe CD until it reaches maturity before you can withdraw the funds without penalty. What’s more,any earned interest is taxable for the current year on an annual basis.
Insured vs. guaranteed – what’s the difference?
Both fixed annuities and CDs are considered low-risk financial vehicles because they guarantee a positive rate of return. However, these guarantees work in different ways:
• CDs are generally backed by banks and are insured for up to $250,000 for each depositor
by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union
Administration (NCUA).
• Fixed annuities are guaranteed by the issuing insurance companies, with no maximum.
They are not FDIC insured.
Be sure to ask your financial professional about an insurance company’s ratings and financial strength if you plan to purchase an annuity, because payment of lifetime income is contingent upon the claims-paying ability of the issuing company or companies.
What if you need some of your money before you retire?
Many fixed annuities allow the contract owner to withdraw a certain percentage of the contract value (typically up to 10% on an annual basis or accumulated interest) without incurring any surrender charges, although tax penalties may apply. Amounts withdrawn in excess of the specified percentage are often subject to surrender charges or adjustments. These charges
generally decline each year and expire at the end of a specified number of years. If withdrawals are taken prior to age 59 ½, a 10% federal income tax penalty may apply.
Although some CDs may include interest withdrawal provisions, investors generally must wait until the CD matures to avoid early withdrawal charges. Ask a trusted financial professional
Remember, not every conservative savings vehicle is the same. Fixed annuities offer many of the same features that make other conservative products so popular. In addition, fixed annuities offer other unique advantages that may be beneficial to you. Your financial professional can help you to choose the vehicle that best meets your retirement income objectives and investment needs.
© 2010 Massachusetts Mutual Life Insurance Company.
* Guarantees and payment of lifetime income are based on the claims paying ability of the
issuing company.
Annuity products are issued by Massachusetts Mutual Life Insurance Company, Springfield,
MA and its subsidiary, C.M. Life Insurance Company, Enfield, CT.
Saturday, July 17, 2010
Welcome
Welcome to InvestmentSpeak. I created this blog to connect with individuals regarding investment decisions, what the market is doing, and where is the best place to start. I would like to start by introducing myself. My name is Alicia Eberle and I am a financial advisor in Boston, MA. I work with individuals, families and business owners to develop a strategy to meet life's goals utilizing insurance and investment portfolios. I take a holistic approach, starting with today's budget and illustrating what you need to do to meet your goals. I also offer complimentary assessments of your current planning. Most people think they will begin this process next month, in 3 months, 6 months or a year, however I would like you to seriously take a look back on your life a year ago. Are you in any better financial shape today than you were then? If not lets not put off sitting down together another day. I will leave you with a saying that is near and dear to me personally- you can't predict, but you can prepare!!
Alicia Eberle
AEberle@finsvcs.com
617 642 5388
Alicia Eberle
AEberle@finsvcs.com
617 642 5388
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