Tom and Joy have already made some good progress toward saving for retirement. At present, their retirement savings looks like this:
Joy's 401(k) plan
Tom's IRA (he has no 401k)
$85K in mutual funds and CDs
Tom and Joy want to contribute more to their retirement savings than their 401(k) and IRAs will allow. They're willing to accept some investment risk, and they want to maintain some access to their money, just in case.
Tom and Joy put $25K in a Preference Plus Select® Deferred Non-Qualified Variable Annuity , and signed up for monthly, automatic contributions from their checking account.
This gave them:
unlimited annual contributions*
tax-deferred savings until retirement**
a wide range of investment options
tax-free transfers between investment options
access to their money, in case they need it***
the option to convert their earnings to lifetime income down the road
With a Deferred Annuity, Tom and Joy better prepared themselves for the "ifs" in retirement. So can you.
* Purchase payments over 1 million dollars require home office approval.
** Applies to non-qualified annuities. All IRAs receive tax deferral, so there should be reasons other than tax deferral for purchasing a variable annuity as an IRA.
*** Withdrawals are generally subject to ordinary income tax. Withdrawals prior to age 59½ are generally subject to a 10% tax penalty. Early withdrawal charges of up to 7% may apply; these generally decline over time, and certain amounts are available without charge. See the prospectus for more information.
Variable annuity and variable life products are offered by prospectus only, which is available from your registered representative. You should carefully consider the product’s features, risks, charges and expenses, and the investment objectives, risks and policies of the underlying portfolios, as well as other information about the underlying funding options. This and other information is available in the prospectus, which you should read carefully before investing. Product availability and features may vary by state. All product guarantees are based on the financial strength and claims-paying ability of Metropolitan Life Insurance Company, New York, NY 10166.
Preference Plus Select deferred variable annuity is issued by Metropolitan Life Insurance Company, 200 Park Avenue, New York, NY 10166. Product availability and features may vary by state. Securities, including variable products, are offered through MetLife Securities, (FINRA/SIPC), 200 Park Avenue, New York, NY 10166. A MetLife affiliate.
Like most annuity contracts, MetLife’s contracts contain surrender charges, exclusions, limitations and terms for keeping them in force. See your MetLife Representative for complete details.
Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.
MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. 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 facts and circumstances. You should consult with and rely on your own independent legal and tax advisers regarding your particular set of facts and circumstances.
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