Page 5 - AAA Northampton County – AAA Now! – Spring 2016

FINANCIAL SERVICES
AAA
Find out how they can fit into your retirement strategy.
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UNDERSTANDING ANNUITIES
For many Americans, financial peace of mind is a critical part of an enjoyable retirement. A robust pension could provide fiscal security, but, lacking that, how can someone establish a reliable source of income for their golden years? One option to consider is an annuity.
What Is It?
The way an annuity works is simple: You put a designated amount of money into the annuity (in a lump sum or over a period of time), and when you retire, the annuity makes payments to you at regular intervals, over a specified period of time. You can customize an annuity to fit your specific needs by customizing you contributions, the duration of the payments and more.
What Does It Offer?
One of the most attractive features of an annuity is that it can be set up so you will receive payments for the rest of your life. Annuities offer other advantages as well. Earnings on an annuity are tax-deferred, meaning no tax is due until you actually take the money out. Because annuities’
inherent level of risk can be lower than some other retirement products, they can diversify a retirement portfolio by providing stability. Also, there is
no annual contribution limit on non-qualified annuities (those funded with after-tax dollars), which makes them especially useful to someone nearing retirement who has not set enough aside.
What Else Should I Know?
Annuities are long-term products. There may be a surrender charge if money is taken out too soon (usually within the first few years). Also, an annuity owner younger than 59 1⁄2 who withdraws money may be subject to a 10 percent IRS penalty. Annuities cannot hold funds indefinitely: owners of qualified annuities (those funded with pretax dollars) must take required minimum distribution payments determined by the IRS.
If you could benefit from a guaranteed source of income during your retirement, an annuity might be a good option for additional peace of mind.
*To learn more about the benefits of owning an annuity, contact Lisa Moyer, your AAA Life Insurance Specialist, at 610-258-2371.
It’s Tax Season...
Time to Consider an Annuity
Tax season is the perfect time to think about how an annuity can help you prepare for retirement. AAA Life Insurance Company’s Platinum Bonus Annuity® can help ensure you have the financial security you need to enjoy your retirement years.
The base interest rate on our Platinum Bonus Annuity is 2.25%. Check out the competitive Platinum Bonus interest rates—including the first-year bonus.
About the Platinum Bonus Annuity
AAA Life’s Platinum Bonus 5-year annuity:
• Can be purchased for as little as $3,000.
• Offers a competitive fixed interest rate that is guaranteed for the first 12
months.
• Can guarantee retirement payments for as long as you live.
• Allows payout options to meet income needs for you and your family.
1Interest rates effective as of 1/21/16 and are subject to change without notice. Interest rates are annual effective yields. The first-year declared interest rate is guaranteed for the first contract year only and is separate from the guaranteed minimum rate effective for all contract years.
Annuities are usually purchased to meet long-term goals. Product and its features may not be available in all states. Under current tax law, earnings withdrawn before age 591/2 may be subject to IRS penalty and taxable. During the surrender charge period, withdrawals exceeding 10% will be subject to a surrender charge that may be higher than fees associated with other types of financial products and may reduce principal. For complete terms of the annuity, please refer to the contract. AAA Life and its agents do not provide legal or tax advice. Therefore, you may wish to seek independent legal, tax, or financial advice prior to the purchase of any contract. Annuities offered by AAA Life Insurance Company, Livonia, MI. AAA Life (CA Certificate of Authority #07861) is licensed in all states except NY. Contract Form Series ICC11-4111/DA-4111. ALAN-22417-116-XX
Issue Amounts
Current Base Interest Rate1
First-Year Bonus Rate1
Total First-Year Annuity Rate1
$3,000 - $49,999
2.00%
1.50%
3.50%
$50,000 - $499,999
2.00%
2.00%
4.00%
$500,000 and higher
2.00%
2.50%
4.50%
Contact your local AAA Life Insurance Specialist today to learn more about the benefits of our Platinum Bonus Annuity.
Lisa Moyer
(610) 258-2371
AAA Northampton County 3914 Hecktown Road Easton, PA 18045
AUTO RENEW YOUR AAA MEMBERSHIP
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Sign up for automatic renewal of your membership and you will have a chance to WIN a cruise for two from a convenient home port or anywhere abroad! Already enjoying the benefits of Auto Renewal? You’ll be automatically entered.
SIGN UP TODAY! Call 610-258-2371
Click www.aaanc.com/autorenew or visit the office
Drawing will be held on December 31, 2016. Only Primary Auto Renewal members will be entered into the drawing. Must be on automatic renewal to be entered into the drawing. Valid for AAA Northampton County members only. Certificate is valued for travel in 2017. Airline tickets and ground transportation extra. Valid for an interior stateroom. Ships' Registry: Bahamas
ALAN-22417-116-XX-4.85x4.85.indd 1
SPRING 2016
WIN
a 4- to 5-Night Royal Caribbean Cruise
SIGN UP FOR AUTO RENEWAL –
the safe, easy and convenient way to renew your AAA membership.
3914 Hecktown Rd., Easton, PA • (610) 258-2371 • www.aaanc.com
1/15/2016 12:42:09 PM
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Now!
NOW is the Time
Ask about an annuity TODAY