Presentation on theme: "The Annuity Solution. Investment Products are distributed through Registered Representatives of Mutual of Omaha Investor Services, Inc., Mutual of Omaha."— Presentation transcript:
The Annuity Solution. Investment Products are distributed through Registered Representatives of Mutual of Omaha Investor Services, Inc., Mutual of Omaha Plaza, Omaha, NE Fixed Annuities underwritten by United of Omaha Life Insurance Company, Mutual of Omaha Plaza, Omaha, NE AFN29780_0905
The Annuity Solution Strong, secure and customer focused Since 1926, one of the Mutual of Omaha Companies Mutual of Omaha has over $18.4 billion in assets under management United of Omaha Life Insurance Company
The Annuity Solution An annuity is an insurance policy that offers tax-deferred growth of earnings and flexible income options. What is an Annuity?
The Annuity Solution Annuities address the two important phases of retirement planning: Accumulation of funds prior to retirement Reliable income after retirement
The Annuity Solution Why Plan Financially for Retirement? Maintain current lifestyle People are living longer Need for income
The Annuity Solution An annuity from United of Omaha Life Insurance Company can provide valuable protection against the loss of income resulting from increasing life expectancies.
The Annuity Solution Source: National Vital Statistics Reports, Vol. 52, No. 3, Sept, 2003 Life Expectancy at Birth YEARMALEFEMALE
The Annuity Solution Types of Annuities Fixed Immediate Deferred Variable
The Annuity Solution Considered safe, conservative Earn a fixed rate of interest Provide minimum rate guarantees Renewal rates set by insurance company Have flexible income options Fixed Annuities
The Annuity Solution Potential for higher returns vs. fixed annuities Greater risk because there is no initial rate guarantee Owner directs investment of the premium into stock or bond portfolios or a fixed account Variable returns - Based on the performance of selected sub-accounts Tax-deferred growth and death benefits Variable Annuities
The Annuity Solution Purchased with a single premium Provides guaranteed payments over a lifetime or specific period of time Annuity payments must begin within 13 months of purchase Immediate Annuities
The Annuity Solution Typical Income Options Life Annuity - Income for Life Joint Life Joint and Last Survivor Life Annuity with Period Certain Joint and Survivor Life with Period Certain Period Certain without Life
The Annuity Solution Earnings accumulate within the annuity on a tax deferred basis until a future date. Deferred Annuities
The Annuity Solution Taxes are not paid on the investment earnings until they are withdrawn. Over time, this can significantly increase the size of your nest egg. The Power of Tax Deferral
The Annuity Solution The Power of Tax Deferral * $25,000 one-time purchase payment, 28% tax bracket, 5% interest rate. This chart is for illustrative purposes only. Surrender penalties may apply. Withdrawals made prior to age 59 1/2 may be subject to income tax and a 10% early withdrawal penalty.
The Annuity Solution Meet IRS guideline for certain tax advantages Examples: Deductible IRAs and 401(k) rollovers Contributions may be deductible, and earnings grow tax deferred - Taxes havent been paid Withdrawals before age 59-1/2 may be subject to a 10% IRS penalty Required distributions must begin at age 70-1/2 Qualified Annuities
The Annuity Solution Purchase payments made with after-tax dollars Creates basis - not taxable when distributed Only the earnings are taxable when withdrawn Withdrawals of earnings before age 59-1/2 may be subject to a 10% IRS penalty Non-Qualified Annuities
The Annuity Solution Income from non-qualified annuities is received on a tax-advantaged basis. Exclusion Ratio - The portion of each payment that is considered a return of principal and is non-taxable ER = Principal / Expected Return Exclusion Ratio
The Annuity Solution $100,000 Single Premium Immediate Annuity Non-qualified with a 10-year period certain payout $1,050 per month for 10 years = $126,000 * Exclusion Ratio ($100,000 / $126,000) = 79.4% $834 (79.4%) of each payment is not taxed Remaining $216 of monthly income is taxable * Monthly payment amount is for illustration purposes only Exclusion Ratio Example
The Annuity Solution United of Omaha has a complete menu of annuity offerings: Single Premium Immediate Annuities Single Premium Deferred Annuities Flexible Premium Annuities
The Annuity Solution Talk to your representative Ask questions about product features Learn about the available income options Look for a company that is reputable, consumer-oriented and financially strong Tips on Buying Annuities
The Annuity Solution No other financial tool gives you the option of receiving a lifetime income benefit with a guarantee that your money will never run out. Investment Products are distributed through Registered Representatives of Mutual of Omaha Investor Services, Inc., Mutual of Omaha Plaza, Omaha, NE Fixed Annuities underwritten by United of Omaha Life Insurance Company, Mutual of Omaha Plaza, Omaha, NE