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Freeman's Blog


January 17, 2013

The number of Americans aged 90 or older almost tripled from 1980 through 2010 and is projected to quadruple by 2050.1

Of course, reaching 90 is still an unusual accomplishment, but the average 65-year-old can expect to live another 19 years.2 A retirement plan that provides steady monies for both the short and the long term could help you enjoy a long, comfortable retirement.

retirement planning annuitiesAn annuity is a contract with an insurance company in which you agree to make one or more payments in exchange for a current or future monies. An immediate annuity typically begins to pay money to the contract holder immediately, whereas a deferred annuity begins paying monies at a specified time in the future.

Withdrawals of annuity increases are taxed as ordinary income and may be subject to a 10% federal income tax penalty if made prior to age 59 ½. Withdrawals reduce annuity contract benefits and values. Most annuities have surrender charges that are assessed during the early years of the contract if the annuity is surrendered.

Generally, annuities have contract limitations, fees, and charges, which can include mortality and expense charges, account fees, management fees, administrative fees, and charges for optional benefits. Any guarantees are contingent on the claims-paying ability of the issuing company. Annuities are not guaranteed by the FDIC or any other government agency; they are not deposits of, nor are they guaranteed or endorsed by, any bank or savings association.

life_guide_retirementSources:
1) U.S. Census Bureau, 2011
2) National Vital Statistics Reports, Volume 59, Number 4, 2011

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