Securing Income for a Retirement Lifetime...Why Plan for a Long Retirement? 1 U.S. News & World...
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Securing Income for a Retirement Lifetime Guardian Income Annuities FOR RETIREMENT-INCOME PLANNING INDIVIDUALS GUARDIAN GUARANTEED INCOME ANNUITY II SM GUARDIAN SECUREFUTURE INCOME ANNUITY SM
Transcript of Securing Income for a Retirement Lifetime...Why Plan for a Long Retirement? 1 U.S. News & World...
Securing Income for a Retirement Lifetime
Guardian Income Annuities
FOR RETIREMENT-INCOME PLANNING INDIVIDUALS
GUARDIAN GUARANTEED INCOME ANNUITY IISM
GUARDIAN SECUREFUTURE INCOME ANNUITYSM
The Guardian Insurance & Annuity Company, Inc.7 Hanover Square New York, NY 10004-4025 www.GuardianLife.com
EB016876 (02/14) 2014—02006
This document is not a legal contract. For terms and conditions please refer to the annuity contract.
The information provided herein is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. This brochure supports the promotion and marketing of this annuity.
Current tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the particular set of facts and circumstances. Entities or persons distributing this information are not authorized to give tax or legal advice. Individuals are encouraged to seek specific advice from their personal tax or legal counsel.
The Guardian Guaranteed Income Annuity IISM and Guardian SecureFuture Income AnnuitySM are service marks of and are issued by The Guardian Insurance & Annuity Company, Inc. (GIAC), a Delaware corporation whose principal place of business is 7 Hanover Square, New York, NY 10004. (800) 221-3253.
GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America.
Product availability and features may vary by state.
Contract guarantees are guaranteed solely by the claims-paying ability and strength of The Guardian Insurance & Annuity Company, Inc.
For more information about Guardian Guaranteed Income Annuity IISM and Guardian SecureFuture Income AnnuitySM please contact your financial professional or call GIAC at (800) 221-3253.
www.GuardianLife.com
Not a deposit | Not FDIC or NCUA Insured | No Bank or Credit Union Guarantee
The Guardian Insurance & Annuity Company, Inc. (GIAC) is a wholly owned subsidiary of The Guardian Life Insurance Company of America (Guardian), a mutual life insurance company founded in 1860.
Guardian Income Annuities are issued by GIAC. GIAC continues Guardian’s 150 year tradition of offering competitive f inancial products and operates by Guardian’s core values of:
We Do The Right Thing. There’s no right way to a do a wrong thing. That’s been our philosophy since day one. It’s a simple, yet profound principle, and it makes all the difference in how we do business.
People Count. People are at the heart of everything we do. Individuals, families and business owners put their trust in us to protect the people who matter to them. And we make it a point never to forget that.
We Hold Ourselves To Very High Standards. The people who put their trust in us expect a lot from us. We try to exceed every expectation by performing to the highest standards to make sure we live up to that trust.
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Planning for a Retirement Lifetime
When you know you don’t have all of the right answers, that’s when you begin to ask the right questions.
Such questions may be: • Why should I plan for a long retirement? • What risks should I be preparing for? • Who can maximize my asset’s income potential?
When you have the right questions, you can begin to gather the appropriate answers to help you prepare the right plan for your life during retirement.
This brochure will explore each of these questions, and will also provide you with information about Guardian Income Annuities, which may be appropriate products for you to consider as a part of your plan for retirement.
About Guardian Income Annuities:The Guardian Guaranteed Income Annuity IISM – is a single premium immediate fixed annuity that provides you with a stream of annuity payments that must start within 12 months after purchasing the annuity. You may choose to have these annuity payments last for your lifetime (or your spouse’s lifetime) or for a set period of time.
Guardian SecureFuture Income AnnuitySM – is a deferred income annuity that will provide you with a lifetime stream of annuity payments that begin on a future date you set within the rules of the annuity.
Both of these annuities are issued by The Guardian Insurance & Annuity Company, Inc. (GIAC). All guarantees are backed exclusively by the strength and claims paying ability of GIAC, not Guardian.
Longevity is a retirement risk multiplier; more years during retirement means more income needed to support your lifestyle.
Increasing Life ExpectanciesAs healthcare technologies continue to improve, and as people continue to improve their health through diet and exercise, life expectancies continue to rise.
The average life expectancy for a male increased to 81.7 years (85 years for a female) in 2010 from 75.5 years (81.1 years for a female) in 1985. That’s 6.2 years more for males and 3.9 years more for females.1
This may seem to be a relatively insignificant amount of time, but when multiplied by $50,000 (assuming this would be your needed annual income above Social Security), it could have a tremendous impact on your overall financial plan for retirement.
Why Plan for a Long Retirement?
1 U.S. News & World Report, July 2013
2
1985 2010
Male Life Expectancy
6.2 Years More!
75.5 years 81.7 years
$50,000 X 6.2 = $310,000
Home Living
Entertainment
Insurance Company
AFTER THE AGE OF 80, THE RATIO OF
WIDOWS TO WIDOWERIN THE US IS 5 TO 1
LIFE EXPECTANCY BY STATE
74–75 74.5–75.5 75.5–76.25 76.28–77 77–77.75 77.75–78.5 78.5–79.25 79.25–80 80+
HIGHEST: HAWAII
81.3LOWEST: MISSISSIPPI
75.02013 TO 2014 Data Set
FUTURE PURCHASING POWER (PRP)26% PrP
REDUCTION
AFTER 10 YEARSTODAY AFTER 20 YEARS
46% REDUCED PrP AT3% ANNUAL INFLATION RATE
Deferred Income Payments 3 Deferred Income Payments2
Deferred Income Payments1Immediate Annuity Payments
1 5 10 15 20 25 30 35
Contract Years
Income for Life
Non-Taxable Amount
Taxable Amount
FIRST ANNUITY PAYMENTCONTRACT YEARS
MAY LAST FOR UP TO 20 YEARS
3
1985 2010
Male Life Expectancy
6.2 Years More!
75.5 years 81.7 years
$50,000 X 6.2 = $310,000
Home Living
Entertainment
Insurance Company
AFTER THE AGE OF 80, THE RATIO OF
WIDOWS TO WIDOWERIN THE US IS 5 TO 1
LIFE EXPECTANCY BY STATE
74–75 74.5–75.5 75.5–76.25 76.28–77 77–77.75 77.75–78.5 78.5–79.25 79.25–80 80+
HIGHEST: HAWAII
81.3LOWEST: MISSISSIPPI
75.02013 TO 2014 Data Set
FUTURE PURCHASING POWER (PRP)26% PrP
REDUCTION
AFTER 10 YEARSTODAY AFTER 20 YEARS
46% REDUCED PrP AT3% ANNUAL INFLATION RATE
Deferred Income Payments 3 Deferred Income Payments2
Deferred Income Payments1Immediate Annuity Payments
1 5 10 15 20 25 30 35
Contract Years
Income for Life
Non-Taxable Amount
Taxable Amount
FIRST ANNUITY PAYMENTCONTRACT YEARS
MAY LAST FOR UP TO 20 YEARS
Replacing What You Need Most – Predictable IncomeOne key question that you may need to answer when you retire is – how are you going to replace the most consistent aspect of your working career – your paycheck?
For you see, even though you are retiring, other details and costs in your life may remain the same, such as:
• Home essentials (electric, gas, mortgage),
• Living essentials (food, water, clothing, medications,); and
• Entertainment essentials (TV, internet, phone).
The one aspect that these items have in common is that you will need money to pay for them. On average, benefits from Social Security account for about 40% of income of today’s retirees. This means that 60% of income must come from your own sources each and every year.
Transferring Risk to the Insurance IndustryInvesting can build your savings, but involves risk of losing it as well.
Using a portion of your assets to secure a stream of guaranteed annuity payments from a Guardian Income Annuity removes this risk from your table because the annuity payments are not reliant on or affected by market conditions.
Risk has been transferred to the issuing insurance company, The Guardian Insurance & Annuity Company, Inc., which has received exemplary ratings from the four major independent rating agencies for meeting our obligations to our clients.
It is up to us to provide the stream of income promised to you when you purchased your annuity. Along with our values, it’s a promise we stand and live by with each decision we make as an insurance company.
1985 2010
Male Life Expectancy
6.2 Years More!
75.5 years 81.7 years
$50,000 X 6.2 = $310,000
Home Living
Entertainment
Insurance Company
AFTER THE AGE OF 80, THE RATIO OF
WIDOWS TO WIDOWERIN THE US IS 5 TO 1
LIFE EXPECTANCY BY STATE
74–75 74.5–75.5 75.5–76.25 76.28–77 77–77.75 77.75–78.5 78.5–79.25 79.25–80 80+
HIGHEST: HAWAII
81.3LOWEST: MISSISSIPPI
75.02013 TO 2014 Data Set
FUTURE PURCHASING POWER (PRP)26% PrP
REDUCTION
AFTER 10 YEARSTODAY AFTER 20 YEARS
46% REDUCED PrP AT3% ANNUAL INFLATION RATE
Deferred Income Payments 3 Deferred Income Payments2
Deferred Income Payments1Immediate Annuity Payments
1 5 10 15 20 25 30 35
Contract Years
Income for Life
Non-Taxable Amount
Taxable Amount
FIRST ANNUITY PAYMENTCONTRACT YEARS
MAY LAST FOR UP TO 20 YEARS
As with anything in life, there are risks you should be prepared for during retirement and have a plan in place to face those risks.
Here are some of the risks we’ve identified for you and how owning a Guardian Income Annuity may help prepare you for these risks.
Longevity RiskThis is the risk of outliving your assets. No one knows specifically how long retirement will be; therefore, it is prudent to plan for a long retirement.
Longevity is a risk multiplier. Meaning, the longer you live, the greater a specific event’s financial impact (e.g. a downturn in the market, a loss of a spouse, a health condition arising) may have on how long your assets will last and be able to provide you with income.
Preparing for Longevity RiskOwning a Guardian Income Annuity and selecting a lifetime payment option, will provide you with annuity payments for as long as you live, regardless of market conditions. The annuity can also be structured so that the annuity payments are passed to a living spouse upon your death. Also, you can instruct us to pay a portion of or all of your annuity payments to any institution of your choice.
What Risks Should You Prepare For?
Facts About Aging. Sherrie McGregor, Ph.D, Psych Central, 04-2006
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1985 2010
Male Life Expectancy
6.2 Years More!
75.5 years 81.7 years
$50,000 X 6.2 = $310,000
Home Living
Entertainment
Insurance Company
AFTER THE AGE OF 80, THE RATIO OF
WIDOWS TO WIDOWERIN THE US IS 5 TO 1
LIFE EXPECTANCY BY STATE
74–75 74.5–75.5 75.5–76.25 76.28–77 77–77.75 77.75–78.5 78.5–79.25 79.25–80 80+
HIGHEST: HAWAII
81.3LOWEST: MISSISSIPPI
75.02013 TO 2014 Data Set
FUTURE PURCHASING POWER (PRP)26% PrP
REDUCTION
AFTER 10 YEARSTODAY AFTER 20 YEARS
46% REDUCED PrP AT3% ANNUAL INFLATION RATE
Deferred Income Payments 3 Deferred Income Payments2
Deferred Income Payments1Immediate Annuity Payments
1 5 10 15 20 25 30 35
Contract Years
Income for Life
Non-Taxable Amount
Taxable Amount
FIRST ANNUITY PAYMENTCONTRACT YEARS
MAY LAST FOR UP TO 20 YEARS
Inflation Risk
This is the risk that the purchasing power of today’s dollar may be reduced by the rising cost of goods (inflation.) On average, inflation in The United States of America rises around 3% each year. So, a bundle of goods that cost $100 today will cost $130 in ten years. It’s important to plan on your expenses during retirement to gradually increase over time and to have your income increase as well.
Preparing for Inflation RiskBy owning a combination of Guardian Income Annuities, immediate and deferred income, you can establish a systematic plan to have annuity payments begin at set times during your retirement.
For example, you can purchase an immediate income annuity when you retire that will begin payments within a year, and three deferred income annuities with payments set to start at 5, 10, and 15 years after purchase. This way, at set times during your retirement the inflow of income will increase and possibly help counteract inflation’s impact to your purchasing power.
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1985 2010
Male Life Expectancy
6.2 Years More!
75.5 years 81.7 years
$50,000 X 6.2 = $310,000
Home Living
Entertainment
Insurance Company
AFTER THE AGE OF 80, THE RATIO OF
WIDOWS TO WIDOWERIN THE US IS 5 TO 1
LIFE EXPECTANCY BY STATE
74–75 74.5–75.5 75.5–76.25 76.28–77 77–77.75 77.75–78.5 78.5–79.25 79.25–80 80+
HIGHEST: HAWAII
81.3LOWEST: MISSISSIPPI
75.02013 TO 2014 Data Set
FUTURE PURCHASING POWER (PRP)26% PrP
REDUCTION
AFTER 10 YEARSTODAY AFTER 20 YEARS
46% REDUCED PrP AT3% ANNUAL INFLATION RATE
Deferred Income Payments 3 Deferred Income Payments2
Deferred Income Payments1Immediate Annuity Payments
1 5 10 15 20 25 30 35
Contract Years
Income for Life
Non-Taxable Amount
Taxable Amount
FIRST ANNUITY PAYMENTCONTRACT YEARS
MAY LAST FOR UP TO 20 YEARS1985 2010
Male Life Expectancy
6.2 Years More!
75.5 years 81.7 years
$50,000 X 6.2 = $310,000
Home Living
Entertainment
Insurance Company
AFTER THE AGE OF 80, THE RATIO OF
WIDOWS TO WIDOWERIN THE US IS 5 TO 1
LIFE EXPECTANCY BY STATE
74–75 74.5–75.5 75.5–76.25 76.28–77 77–77.75 77.75–78.5 78.5–79.25 79.25–80 80+
HIGHEST: HAWAII
81.3LOWEST: MISSISSIPPI
75.02013 TO 2014 Data Set
FUTURE PURCHASING POWER (PRP)26% PrP
REDUCTION
AFTER 10 YEARSTODAY AFTER 20 YEARS
46% REDUCED PrP AT3% ANNUAL INFLATION RATE
Deferred Income Payments 3 Deferred Income Payments2
Deferred Income Payments1Immediate Annuity Payments
1 5 10 15 20 25 30 35
Contract Years
Income for Life
Non-Taxable Amount
Taxable Amount
FIRST ANNUITY PAYMENTCONTRACT YEARS
MAY LAST FOR UP TO 20 YEARS
Losing any loved one will have a tremendous impact on your life. Now imagine how your spouse may feel if you are the primary earner in your partnership, and he/she were to lose you.
It’s important to know that income from some of your retirement sources may stop when you die. You will want to have an income succession plan in place so that any stream of income can seamlessly be passed to your living spouse.
Preparing for Loss of Spouse RiskGuardian Income Annuities can be structured to pass the annuity payments to your spouse upon your death under joint life annuity payment options. The annuity payments continue until the death of the last surviving annuitant.
When the payout option has a guaranteed period in effect, the annuity payments would be passed to the named beneficiaries on the death of the last surviving annuitant to help you meet any inheritance planning goals.
Loss of Spouse Risk
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1985 2010
Male Life Expectancy
6.2 Years More!
75.5 years 81.7 years
$50,000 X 6.2 = $310,000
Home Living
Entertainment
Insurance Company
AFTER THE AGE OF 80, THE RATIO OF
WIDOWS TO WIDOWERIN THE US IS 5 TO 1
LIFE EXPECTANCY BY STATE
74–75 74.5–75.5 75.5–76.25 76.28–77 77–77.75 77.75–78.5 78.5–79.25 79.25–80 80+
HIGHEST: HAWAII
81.3LOWEST: MISSISSIPPI
75.02013 TO 2014 Data Set
FUTURE PURCHASING POWER (PRP)26% PrP
REDUCTION
AFTER 10 YEARSTODAY AFTER 20 YEARS
46% REDUCED PrP AT3% ANNUAL INFLATION RATE
Deferred Income Payments 3 Deferred Income Payments2
Deferred Income Payments1Immediate Annuity Payments
1 5 10 15 20 25 30 35
Contract Years
Income for Life
Non-Taxable Amount
Taxable Amount
FIRST ANNUITY PAYMENTCONTRACT YEARS
MAY LAST FOR UP TO 20 YEARS
( A
nnui
ty P
aym
ent
Am
ount
)
— 1% — 2% —3% — 4% — 5%
— No Annual Payment Increase
YEARS (after Annuity Payments Begin)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Market Risk and Sequence of Returns Risk
Market Risk is the risk that the financial markets may not perform well enough to meet your distribution needs (taking income from your assets). Market risk became a major reality for pre-retirees during 2008, when a vast majority of them saw their 401(k) plan balances plummet because of the financial crisis. That crisis caused many pre-retirees to postpone the timing of their retirement.
Sequence of Returns Risk is the risk of having higher investment losses during the earlier years of retirement as you begin to withdraw income. Studies have shown that a portfolio with more investment losses at the beginning of retirement would be depleted six years earlier than a portfolio that had higher returns at the same time. Your lifestyle at the end of retirement is just as important as it was at the beginning of retirement.
Preparing for Market Risk and Sequence of Returns RiskThe annuity payments from a Guardian Income Annuity are not reliant on, or affected by any market condition. Your annuity payments are guaranteed to stay the same year after year.
However, if you want your annuity payments to grow, you may elect the Annuity Payment Increase Benefit when you first purchase a Guardian Income Annuity. Payments begin lower than payments from an annuity without this benefit, but then grow each and every year from 1% to 5%. You select the rate increase. This benefit helps you prepare for inflation risk, too.
It may take some time before payments will equal or exceed payments from an annuity without this benefit. If you are purchasing an annuity with this benefit, the annuity payment start date must be after you have attained the age of 59 ½.
Annuity Payment Increase Benefit This example is for illustrative purposes. Actual payments change based on current interest rates.
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— 1% — 2% —3% — 4% — 5% — No Annual Payment Increase
Tax Risk is the risk that the amount of taxes you owe may be more than what you are able to pay. Even when dividends and investment gains are reinvested back into a mutual fund, you still owe taxes on those amounts for that tax-year even though you didn’t receive them. This may cause you to redeem shares anyway to pay your tax bill.
Preparing for Tax RiskGuardian Income Annuities are tax efficient retirement products. When purchased with non-qualified money (money that you have already paid taxes on), an exclusion ratio will be applied to your annuity payments to determine their tax treatment.
This ratio is based on an IRS calculation that allows us to categorize a portion of your annuity payment as non-taxable and deem that part as a return of your premium. The other portion of the annuity payment is taxable at ordinary income tax rates and is deemed as interest paid to you.
Because of this ratio, you are able to spread your tax liability over many years until your entire premium has been repaid to you. At that time your annuity payments will be 100% taxable, but the dollar amount of the annuity payment will stay the same.
Tax Risk
8
1985 2010
Male Life Expectancy
6.2 Years More!
75.5 years 81.7 years
$50,000 X 6.2 = $310,000
Home Living
Entertainment
Insurance Company
AFTER THE AGE OF 80, THE RATIO OF
WIDOWS TO WIDOWERIN THE US IS 5 TO 1
LIFE EXPECTANCY BY STATE
74–75 74.5–75.5 75.5–76.25 76.28–77 77–77.75 77.75–78.5 78.5–79.25 79.25–80 80+
HIGHEST: HAWAII
81.3LOWEST: MISSISSIPPI
75.02013 TO 2014 Data Set
FUTURE PURCHASING POWER (PRP)26% PrP
REDUCTION
AFTER 10 YEARSTODAY AFTER 20 YEARS
46% REDUCED PrP AT3% ANNUAL INFLATION RATE
Deferred Income Payments 3 Deferred Income Payments2
Deferred Income Payments1Immediate Annuity Payments
1 5 10 15 20 25 30 35
Contract Years
Income for Life
Non-Taxable Amount
Taxable Amount
FIRST ANNUITY PAYMENTCONTRACT YEARS
MAY LAST FOR UP TO 20 YEARS
Who can Maximize Your Assets Income Potential?
Guarantee. This word is applicable when describing the features and benefits of the products backed by the government of the United States of America and those issued by the insurance company industry.
While the interest and principal from treasury securities are guaranteed as to the timeliness of their payments because they are backed by the full faith and credit of the U.S. government, the amount of interest payable has been highly inadequate and is at historically low rates.
Higher Income with Insurance ProductsA majority of financial products lock up your principal for a certain number of years either through penalties or surrender charges for early withdrawals. Plus, there may be unfavorable market conditions when you sell your position.
During retirement, liquidity means having an inflow of income throughout your retirement years so that you may have enough money to live comfortably.
Because of the exclusion ratio and the return of your premium plus interest within the annuity payments from a Guardian Income Annuity, these annuities may be able to provide you with a greater rate of return than other financial products on your premium purchase. And, the amount of each annuity payment is guaranteed to remain the same each year, regardless of market conditions.
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These hypothetical values and returns are not representative of any investment option and/or financial product.
Putting the Annuities to the Test
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This is a hypothetical example of how both an immediate annuity and deferred income annuity may help you.
This portfolio began with a balance of $621,115 but experienced high investment losses during the first three years when withdrawals began initially equaling 5% of $621,115. Each year thereafter, the withdrawals are increased by 3% to combat inflation.
Based on the subsequent annual rates of return and increasing withdrawals, the portfolio’s balance will be exhausted by the time the owner reaches age 84 to 85.
The owner in this scenario could lower the withdrawal rate to make the portfolio’s balance last, but the portfolio is still subject to risks.
Market Risk and Sequence of Returns Risk
Inflation Risk
Longevity Risk
66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
Annual Return
-9%
-12%
-22%
14%
19%
5%
17%
1%
-3%
22%
19%
6%
-15%
10%
30%
19%
16%
-3%
23%
8%
15%
-8%
22%
18%
19%
Age
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
Annual Return
-9%
-12%
-22%
14%
19%
5%
17%
1%
-3%
22%
19%
6%
-15%
10%
30%
19%
16%
-3%
23%
8%
15%
-8%
22%
18%
19%
Age
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
Annual Return
-9%
-12%
-22%
14%
19%
5%
17%
1%
-3%
22%
19%
6%
-15%
10%
30%
19%
16%
-3%
23%
8%
15%
-8%
22%
18%
19%
Age
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
PORTFOLIO BALANCE $621,115 INCOME
FROM PORTFOLIO 5% INITIAL WITHDRAWAL 3% INFLATION INCREASE
PORTFOLIO’S BALANCE COULD NOT SUPPORT INCOME PAST AGE 85
Now, let’s include the purchase of an immediate annuity and a deferred income annuity. The immediate annuity is purchased with $273,021 that will provide an initial $15,000 annuity payment that has a 2% cost of living adjustment (COLA) increase to those payments each contract year for the owner’s lifetime.
The deferred income annuity is purchased with $87,592 that will provide an initial $10,000 annuity payment when the owner turns age 75. The deferred income annuity payments also have a 2% COLA increase each contract year after the first annuity payment.
Since the annuity payments are set from the two annuities, the owner initiates withdrawals equaling 4% of the remaining portfolio balance of $260,502 and increases those withdrawals each year by 3% to combat inflation.
When the deferred income annuity payments begin, the owner resets the portfolio withdrawals to the initial 4% amount at age 66 increased each year thereafter for inflation, thus leaving more assets invested for further growth potential.
These hypothetical values and returns are not representative of any investment option, financial product or annuity products. Please request a current annuity illustration from your financial professional for a current representation of a Guardian Income Annuity’s cost for an annuity payment stream.
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66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
Annual Return
-9%
-12%
-22%
14%
19%
5%
17%
1%
-3%
22%
19%
6%
-15%
10%
30%
19%
16%
-3%
23%
8%
15%
-8%
22%
18%
19%
Age
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
PORTFOLIO BALANCE $260,502
TO SPIA $273,021
TO DIA $87,592
TOTAL $621,115
66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
Annual Return
-9%
-12%
-22%
14%
19%
5%
17%
1%
-3%
22%
19%
6%
-15%
10%
30%
19%
16%
-3%
23%
8%
15%
-8%
22%
18%
19%
Age
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
INCOME
FROM PORTFOLIO 4% INITIAL WITHDRAWAL 3% INFLATION INCREASE
66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$
Annual Return
-9%
-12%
-22%
14%
19%
5%
17%
1%
-3%
22%
19%
6%
-15%
10%
30%
19%
16%
-3%
23%
8%
15%
-8%
22%
18%
19%
Age
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
66 70 74 78 82 86 90
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$
$700,000
66 70 74 78 82 86 90
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$ PORTFOLIO
LESS PRESSURE ON THE PORTFOLIO SO MORE REMAINS INVESTED FOR GROWTH POTENTIAL
PORTFOLIO WITHDRAWALS RESET AT AGE 75
$318,609
LIFETIME DIA PAYMENT $10,000 WITH 2% COLA
LIFETIME SPIA PAYMENT $15,000 WITH 2% COLA
Having a source of guaranteed lifetime income gives you a permission slip to enjoy your other assets and let them possibly be at their utmost potential.
When you have a plan in place to cover your necessary expenses during retirement, you may be able to enjoy it more because the feeling of worry or anxiety about supporting a comfortable lifestyle may have been lifted.
Explore Guardian Income Annuities with your financial professional to see if each annuity’s benefits may help you meet your goals and objectives for retirement.
Retirement is not the end of your life, but the alpha or beginning of a new phase, one that may last as long as 30 years. With an appropriate plan in place, one that includes a Guardian Income Annuity, you may be able to do the things you love with the people you love, without the worry of outliving your money.
Permission to Enjoy the Rest of Your Life
12
Securing Income for a Retirement Lifetime
Guardian Income Annuities
FOR RETIREMENT-INCOME PLANNING INDIVIDUALS
GUARDIAN GUARANTEED INCOME ANNUITY IISM
GUARDIAN SECUREFUTURE INCOME ANNUITYSM
The Guardian Insurance & Annuity Company, Inc.7 Hanover Square New York, NY 10004-4025 www.GuardianLife.com
EB016876 (02/14) 2014—02006
This document is not a legal contract. For terms and conditions please refer to the annuity contract.
The information provided herein is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. This brochure supports the promotion and marketing of this annuity.
Current tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the particular set of facts and circumstances. Entities or persons distributing this information are not authorized to give tax or legal advice. Individuals are encouraged to seek specific advice from their personal tax or legal counsel.
The Guardian Guaranteed Income Annuity IISM and Guardian SecureFuture Income AnnuitySM are service marks of and are issued by The Guardian Insurance & Annuity Company, Inc. (GIAC), a Delaware corporation whose principal place of business is 7 Hanover Square, New York, NY 10004. (800) 221-3253.
GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America.
Product availability and features may vary by state.
Contract guarantees are guaranteed solely by the claims-paying ability and strength of The Guardian Insurance & Annuity Company, Inc.
For more information about Guardian Guaranteed Income Annuity IISM and Guardian SecureFuture Income AnnuitySM please contact your financial professional or call GIAC at (800) 221-3253.
www.GuardianLife.com
Not a deposit | Not FDIC or NCUA Insured | No Bank or Credit Union Guarantee
Securing Income for a Retirement Lifetime
Guardian Income Annuities
FOR RETIREMENT-INCOME PLANNING INDIVIDUALS
GUARDIAN GUARANTEED INCOME ANNUITY IISM
GUARDIAN SECUREFUTURE INCOME ANNUITYSM
The Guardian Insurance & Annuity Company, Inc.7 Hanover Square New York, NY 10004-4025 www.GuardianLife.com
EB016876 (02/14) 2014—02006
This document is not a legal contract. For terms and conditions please refer to the annuity contract.
The information provided herein is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any federal tax penalties. This brochure supports the promotion and marketing of this annuity.
Current tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the particular set of facts and circumstances. Entities or persons distributing this information are not authorized to give tax or legal advice. Individuals are encouraged to seek specific advice from their personal tax or legal counsel.
The Guardian Guaranteed Income Annuity IISM and Guardian SecureFuture Income AnnuitySM are service marks of and are issued by The Guardian Insurance & Annuity Company, Inc. (GIAC), a Delaware corporation whose principal place of business is 7 Hanover Square, New York, NY 10004. (800) 221-3253.
GIAC is a wholly owned subsidiary of The Guardian Life Insurance Company of America.
Product availability and features may vary by state.
Contract guarantees are guaranteed solely by the claims-paying ability and strength of The Guardian Insurance & Annuity Company, Inc.
For more information about Guardian Guaranteed Income Annuity IISM and Guardian SecureFuture Income AnnuitySM please contact your financial professional or call GIAC at (800) 221-3253.
www.GuardianLife.com
Not a deposit | Not FDIC or NCUA Insured | No Bank or Credit Union Guarantee
