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Are you financially prepared for the future? Will your current retirement funds meet your financial needs? If your answer is "no," or you’re not sure, you may want to consider an annuity from Farm Bureau to help you prepare for retirement.
An annuity is a contract between you and your insurance company. You pay a premium(s), and you elect to receive, at some point in the future, a series of periodic payments. In the meantime, the premium(s) you have paid can earn interest on an income tax-deferred basis.
Typically, an annuity is purchased to obtain income for retirement. If you are in the stage of life where you are thinking about your lifestyle after retirement, you may find an annuity from Farm Bureau can help ensure you are financially prepared for your retirement years. An annuity can help simplify your life by providing a steady stream of income each month. The type of annuity you purchase largely depends on your current stage of life and risk tolerance.
You may want to consider purchasing an annuity if you have some discretionary income and are looking for a tax-advantaged vehicle in which to invest your money. You may also choose to use the income from an annuity to pay off your home, subsidize Social Security income or help to keep you from outliving your assets.
Your social security or pension may provide less than you need to retire comfortably. According to the Social Security Administration, the average monthly benefit in January 2007 was $957.
1 That’s only $11,484 per year! Employer-sponsored retirement plans such as Section 401(k), Section 403(b) or Keogh plans are an important part of preparing for retirement. However, annual contributions to these plans are limited.
– Annuities can help you to save money on a tax-deferred basis. You will not pay taxes on your earnings until you begin to withdraw your money.
– You can purchase an annuity contract that provides lifelong income or one that pays you for a specific period of time.
– Your beneficiary receives the value of the annuity upon the death of either the owner or the annuitant, depending upon the annuity contract selected. The owner purchases the annuity and the annuitant receives the income payments from the annuity. The owner and annuitant may or may not be the same person. The funds go directly to the beneficiary, avoiding probate and possible additional costs.
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A fixed annuity has a fixed rate of interest with a guaranteed minimum interest rate.
2 The interest rate is declared periodically and may increase or decrease, but will not drop below the guaranteed interest rate.
Who Should Consider a Fixed Annuity?
You may wish to choose this product if you have a low risk tolerance, perhaps nearing retirement, because of its guaranteed minimum interest rate.
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If you have recently inherited some money, if you work in a field where your income is sporadically received, or you are nearing retirement and want to convert savings into a steady stream of income, a single premium immediate annuity may be right for you. If you are looking for a steady stream of income later in life, perhaps beginning at retirement, you may want to consider a deferred annuity.
Our Variable Annuity offers you an array of opportunities ... tax-deferred growth, investment options, guaranteed
3 lifetime income or guaranteed benefits
4 to loved ones.
You also have the opportunity to diversify
5 and have access to various investment philosophies and strategies.
6 The return your money earns will fluctuate based on the market performance of the subaccounts you select.
Who Should Consider a Variable Annuity?
You may want to choose a variable annuity if you are still in the accumulation phase. This type of annuity will provide greater growth potential, but also involves greater risk. If you would like the opportunity to invest your premium in a variety of investment options available, you may wish to choose a variable annuity.
If you would like to discuss your investment options, you may contact a Farm Bureau agent today. |
1Social Security Administration, Monthly Statistical Snapshot, January 2007
www.ssa.gov
2Farm Bureau’s guaranteed rate for Select IV Fixed Annuity is 3.00%. The current rate is declared by the Company and may change at any time for any reason. The guaranteed rates expressed here are based on the claims-paying ability of Farm Bureau Life Insurance Company.
3The guarantees expressed on this Web page are based on the claims-paying ability of Farm Bureau Life Insurance Company.
4Partial withdrawal reductions and market fluctuations in the subaccounts may adversely affect the value of the death benefit.
5A diversified portfolio cannot assure profit or protect against a loss in an overall declining market.
6See the current product prospectus for a description of the investment objectives and principal risk factors associated with an investment in a subaccount. The contract’s underlying subaccounts are subject to fluctuations in market value and possible loss of principal.
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For additional information regarding Farm Bureau's products and services, please contact your local registered representative using the
Agent Locator . |
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IMPORTANT: The information and material contained on this Web site is not an offer to sell or a solicitation to buy any security or any insurance product in any jurisdiction. No security or other insurance product is offered or will be sold in any jurisdiction in which such offer or solicitation purchase or sale would be unlawful under the securities, insurance or other laws of such jurisdiction. Not all products are available in all states. Exclusions, limitations and reductions may apply. This Web site briefly highlights Farm Bureau's insurance policies and their benefits. The contract is contained only in the policy. Farm Bureau products are offered by Farm Bureau agents -- for more information about any Farm Bureau product, please contact your local agent or nearest office using the Agent Locator.
Variable products, subaccounts, mutual funds and municipal fund securities are subject to market risk and possible loss of principal. This and other important information is contained in the prospectus and in the issuer's official statement, which can be obtained from a registered representative and should be read carefully before you invest or pay money. Investors should consider the investment objectives, risks, charges and expenses carefully before investing.
Variable products are comprised of insurance-related features including, but not limited to, a death benefit; optional riders; payment options at death, maturity or upon complete surrender or partial withdrawal; and fees and charges. A 10% tax applies to most withdrawals made from a variable annuity prior to age 59½.
Agent must be a registered representative of EquiTrust Marketing Services, LLC to discuss mutual funds or variable products.
Neither the Company nor its agents give tax, accounting or legal advice. Please consult your professional adviser in these areas.
Policyowners of Farm Bureau's Variable Annuity, Variable Universal Life insurance
and Last Survivor Variable Universal Life insurance products may not have money in
more than 16 investment options, including the Declared Interest Option, at any one
time. Therefore, if a client chooses to reallocate money to different investment
options, the new allocation will not take effect until the appropriate transfer of
money has been completed.
Life insurance and annuity products offered through Farm Bureau Life Insurance Company+/West Des Moines, IA
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| Securities and services offered through registered representatives of EquiTrust Marketing Services, LLC,
+ 5400 University Ave., West Des Moines, IA 50266, 877/860-2904,
Member SIPC |
Terms and Conditions
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