Presentation is loading. Please wait.

Presentation is loading. Please wait.

How to Create A Retirement Fund by Dr. Chyang John Yu 4/30/2011.

Similar presentations

Presentation on theme: "How to Create A Retirement Fund by Dr. Chyang John Yu 4/30/2011."— Presentation transcript:

1 How to Create A Retirement Fund by Dr. Chyang John Yu 4/30/2011

2 Stages of Retirement Fund Creation Accumulation Age 22 - 40 Preservation Age 40 - 65 Distribution: Age 65 +

3 Investment Options Low Interest Rate; Pay Taxes on the Interest you Don’t Use Bank CD Possible Loss of Principal due to Interest Rate Raises Bond High Volatility Stock/Mutual Fund High Volatility; Expensive Gold Long Term Investment; Low Liquidity; Property Management Issues Real Estate Risk Free; Higher Return; Lifetime Income Annuity

4 Retirement Income Risks Longevity Inflation Stock Market Volatility Interest Rate Fluctuation

5 Ideal Retirement Plan Principal Preservation Adequate Return Tax Deferral Lifetime Withdraw of Fund

6 Annuity Contract between Individuals and Insurance Company Pool of Liquid Retirement Fund Provide Life Time Income (Personal Pension) Pass Remainder Fund to Beneficiary Upon Death IRS Penalty if Withdraw before Age 59 1/2

7 Index Annuity Higher Interest: Benefit from the Upward Movement of Major Stock Market Indices Profit Locked Protection of Principal (Premium) Avoid Stock Market Timing Designed for Risk-Adverse Investors Annual Flexible Withdraw up to 10% Tax Deferral: Let Money Grows Faster

8 Bank CD vs. Index Annuity CDAnnuity Principal Preservation - Same Pay Tax on InterestTax Deferral Penalty for Pre-Maturity WithdrawFree up to10% Yearly Withdraw No BonusUpfront Bonus of 5 – 20% Low Interest RateHigher Return due to Stock Market Index Linked Feature Worry-Free Index Annuity = Flexible Withdrawal + Preserve Principal + High Return

9 Case Study #1 6 Year Accumulated Return of 48% during the period 4/28/05 – 4/27/11 Simulated 6 Year Accumulated Return of 69% for a Newly Developed Annuity A during the Same Period

10 Assuming Invest $100,000 into Annuity A Case Study #2 Annuity Annual Return Enhanced Value (After 10 Years) Equivalent Annual Compound Interest Rate 5%$218,1638.1% 6%$239,2639.1% 7%$261,69110.1% 8%$286,00411.1%

11 Thank you!

Download ppt "How to Create A Retirement Fund by Dr. Chyang John Yu 4/30/2011."

Similar presentations

Ads by Google