Case Study - The Standard

[Pages:1]Individual Annuities

Case Study

Diversification With A Fixed Index Annuity

Frank (age 55) has been diligently contributing to his savings for years and now needs to look at funding his retirement. He's young enough for (and is comfortable with) some risk, but knows his priority now needs to be preservation of principal for his retirement years.

Typical Diversification Method

Diversification With A Fixed Annuity

$300,000

$300,000

$150,000 Low Growth Opportunity

(Low-Risk and Fixed Rates)

CDs, Fixed Annuities, Money Market Accounts

$150,000 Aggressive Growth

Opportunity (Exposure To Market Risks)

Variable Annuities, Mutual Funds

$100,000 Low Growth Opportunity

(Low-Risk and Fixed Rates)

CDs, Fixed Annuities, Money Market Accounts

$100,000 Index Growth Opportunity

(No Downside Market Risks)

Fixed Index Annuities

$100,000 Aggressive Growth

Opportunity (Exposure To Market Risks)

Variable Annuities, Mutual Funds

Typical Diversification Method

A Good Year Account Value = $320,250

A Bad Year Account Value = $284,250

Diversification With A Fixed Index Annuity

A Good Year Account Value = $317,500 ($2,750 Missed Growth)

A Bad Year Account Value = $293,500 ($9,250 Protected Loss)

A Good Year assumes 1.50% Fixed Rate, 4.00% Index Rate Cap & 12.00% Index Growth1 A Bad Year assumes 1.50% Fixed Rate, 4.00% Index Rate Cap and 12.00% Index Decline1

Protect Your Loss With A Fixed Index Annuity

A fixed index annuity from The Standard offers competitive returns and strong guarantees, no matter what's happening on Wall Street. The Index Interest Account of an index annuity will never participate in any losses the index may see each term, only in the gains. Plus, as interest is credited, the earnings are locked into the index interest account value. Few taxable investments can compete with this blend of growth potential, safety, and the opportunity for interest compounding.

1. Examples are for illustrative purposes only and are not intended to represent how your annuity may actually perform. Annuities are not (a) insured by the FDIC or any federal government agency, (b) deposits of or guaranteed by any bank or credit union and (c) a provision or condition of any bank or credit union activity. Some annuities are subject to investment risk and may lose value. A surrender charge may apply during the surrender period, and a 10% penalty may apply to withdrawals prior to age 59 ?.

SI 16705 (07/13)

Standard Insurance Company 1100 SW Sixth Avenue Portland OR 97204

(800) 378.4578 annuities

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