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Deferred Start
A Guaranteed Retirement Income Program for pension and qualified rollovers.
Single Life Joint Life Period Certain Income Refund Annuity Inflation Protection Deferred Start Medically Underwritten  

 

The GRIP Deferred Retirement Income Program
Pick future retirement income amount and start date while guaranteeing it with a deposit today.

Example:
Male age 55 wants a guaranteed lifetime income of $2,000 monthly to commence at age 65. He also requires a guaranteed return of the initial premium paid. How can we determine how much he will need?

3 ways to solve this:

Alternative 1
Use Of Deferred Annuity
Alternative 2
Use Of Indexed Annuity
Alternative 3
GRIP Retirement Program
bulletCost of providing a male 65 years old today with the $2,000 income monthly is currently $335,529.65.
bulletUsing the current deferred annuity guaranteed interest rate of 4.30%.
bulletWould require $220,235.75 to be deposited in the deferred annuity today.
bulletCost of providing a male 65 years old today with the $2,000 income monthly is currently $335,529.65.
bulletUsing indexed annuity history modeling for the past 10 years.
bulletWould require a deposit of $180,855.00 to be deposited in the indexed annuity today.
bulletThe GRIP Guaranteed Retirement Deferred Income Program guarantees this $2,000 monthly income to start at age 65
bulletWould require $183,995.00 to be deposited in the deferred start immediate annuity today.
bullet100% Guaranteed Today!
Positives:
bulletFull liquidity at the end of 10 years.
Positives:
bullet$3,000 less to fund and could do even better!
Positives:
bulletGuarantees future income needs today with no chance of change.
bulletVery competitive rate
bulletPeace of mind.
Negative:
bulletCan be guaranteed for $36,240.75 less today.
bulletMortality may increase.
bulletWhy take a chance?
Negative:
bullet Guaranteed end value is only $209,890.00 can leave you very short!
bulletMortality may increase
Negative:
bullet None we see.

 

 

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Copyright © 2005 GRIP Retirement LLC
Last modified: 04/08/08