Your Money Matters





November 2011 Issue



Retirement Income Options

There are a few investment products out there that are promoting “guaranteed income”. One such alternative is an annuity. Annuities have not been used as much most recently, mainly because of the lower interest rate environment. However, if you are over age 65 it may be something to consider. The older you get the more attractive they become for perhaps a “portion” of your money.

Annuities
An annuity is the simplest retirement income option. In exchange for a sum of money, an annuity from an insurance company provides you with a stream of payments.

The income payments you receive are made up of interest and principal and are determined based on:

• Your age (and in certain cases, your spouse's age), for life annuities

• Current interest rates

• The length of time the payments are guaranteed

• The amount of money used to purchase the annuity

A Steady Stream of Payments to You
Select the life income option and you will enjoy a steady retirement income from your pension funds along with the security that you will never outlive your money. And since the insurance company is managing your money, you won't have to worry about market fluctuations or other investment management decisions. You can relax while we do the work.

Payments Guaranteed by the Insurance Company
Your income payments are guaranteed regardless of the ongoing economic conditions. The insurance company manages the money used to purchase your annuity so you're not burdened with any investment decisions.

Tax Treatment
Your annuity payments will be taxed as income in the year that they are received, for registered funds. For non-registered funds, only a portion of each payment is taxed each year.

Life Annuities
A life annuity provides you with income payments for as long as you live.

Joint and Last Survivor Annuities
A joint life and last survivor annuity provides income payments as long as either you or your spouse is living.

Annuity Certain
An annuity certain provides you with a pre-determined number of income payments.
If this is something you would like to discuss or see how it differs from other investment options, please do not hesitate to give us a call.


Theresa Wever and the Money Concepts Team.

Commissions, trailing commissions, management fee and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.