What is an ANNUITY?
An annuity is a contract from an insurance company that offers to pay income to you at regular intervals, for a period of time you specify, all in exchange for your contribution (premium). These contracts may contain other features as well.
Why buy the ELM INCOME ANNUITY?
This contract, issued by Principal Life Insurance Company, is for your consideration…
Why buy the ELM INDEX ANNUITY?
This contract is for your consideration if you are not yet ready to turn your assets…
Overview
As we near retirement, and during retirement, we have a greater sensitivity to loss of assets.
In our 30s and 40s, we invest for the long term. We expect to wait out poor investment performance or asset losses because we have many years before we need income from these assets.
As we near retirement, however, most of us no longer have the option of leaving all of our assets in place to await favorable performance. Typically, as retirees we are withdrawing from assets to meet our living expenses. This means that when the good investment experience comes, it may apply to retirement assets which are smaller because of these withdrawals.
If our retirement assets suffer a loss, the investments we’ve counted on for a long retirement may fall short of what we need.
Plan on retirement lasting a long time.
We count on retirement savings to last a lifetime, and research indicates that retirement could be 30 years or more. That surprises many people who are used to seeing “life expectancy” of 20 to 25 years beyond age 65. We'll show the significant chances for an extended life that you should consider in managing your retirement assets.
Retirement income really means retirement spending power.
As inflation continues, our purchasing power is reduced. We’ll show how much the reduction could be and an example of an income plan that will help to anticipate it.
Safety can be a solution.
The guarantee of income for life and the guarantee against market loss, which is what fixed annuities can provide, can strengthen an income plan for long retirements. Most long term retirement income plans may want to consider fixed annuities because of the protections and growth potential they offer that may increase the chances that the plan will succeed. Keep in mind that all annuity guarantees and protections are backed by the claims-paying ability of the issuing insurance company.
Note: Information provided in the Retirement Income Planning tab is representative of the views of ELM Income Groupsm and not necessarily those of any member of the Principal Financial Group® or Nationwide.