RETIREMENT SERVICES

This graphic illustrates how a fixed indexed annuity compares with other types of accounts in terms of risk and growth potential. Aymond Agency also offers fixed annuities which contains a set interest rate for the duration of the contract. A fixed annuity is best for those who wants a guaranteed growth rate.

401(k) Rollovers

Aymond Agency can help you roll over a 401(k) from a previous employer or a standalone IRA into a fixed indexed annuity. We work with you to complete the application and the financial company where the existing funds resides to transfer the money into the new account.

A fixed indexed annuity offers the following benefits not available in other types of accounts:

Principal Protection - Any money you put in to the account is not at risk
Interest Protection - Any interest earned is not at risk
Opportunity for Growth – interest is credited based on stock market performance
Lifetime Income – personal pension plan with a guaranteed income stream
Probate Avoidance – Proceeds not subject to state probate court.
No fees – by default, there are no administrative fees unless you choose a rider
Tax differed – taxes are only paid once money is withdrawn from the account

401(k) Rollovers

LIRP Advantages and Disadvantages

401(k) Rollovers

Life Insurance Retirement Plan (LIRP)

Many people chose a cash value life insurance policy for supplemental retirement planning. Since it is a life insurance policy, you must qualify. Aymond Agency uses Indexed Universal Life products to realize a LIRP. The following benefits are possible with a LIRP:

Tax Free – You account grows tax free (like a Roth IRA)
Not subject to traditional plan limitations like a 401k or IRA
Liquidity – money can be withdrawn when you need it
Plan Completion – because it has a death benefit, your beneficiaries receive proceeds you had intended to save
College Savings – a LIRP can also be used for college funding
Indexed Account – cash value employs a fixed indexed strategy described above

A LIRP is often a good vehicle for tax risk diversification. The figure above shows three ways how money is taxed. Life Insurance falls in the same tax advantaged category as Roth IRA and Municipal Bonds.

LIRP Advantages and Disadvantages

A LIRP is a life insurance policy that incorporates many of the tax-free features of the traditional retirement accounts, like a Roth IRA.

Cash grows income tax free inside your policy during the contribution years and income is taken income tax free through policy loans. In addition to the distributions being completely tax-free, these distributions do not increase your taxation of Social Security.

Fixed Indexed Strategy

Most people believe you have to either chose a safe investment like a bank or a risky investment like stocks. Aymond Agency uses a hybrid method called a fixed indexed strategy that is only available through life insurance companies. With this approach, you have the upside potential of the stock market with downside protection of a bank. A fixed indexed strategy credits interest to you account based on stock market performance. Both the Fixed Indexed Annuity and Indexed Universal Life employ this strategy.

Here is a view of these three strategies over the last 20 years if the account began with $100,000. The red line is the S&P 500 which is a major stock market index and representative of the stock market historical performance. The white line is illustrative of a fixed account at 2% which is a very liberal example of a bank. It is difficult to get a 2% interest rate from any bank product today. The yellow line shows a fixed indexed profile with a participation rate of 50% which means if your account earns half of what the stock market returns in that year, but with a 0% floor. We specialize in the yellow line. While annual growth is more moderate with an indexed strategy, your account value grows steadily as you don’t have to worry about recovering from losses.