William Penn Life, 1988 (23. évfolyam, 1-12. szám)
1988-12-01 / 12. szám
Page 8, William Penn Life, December 1988 Annuities offer security for retirement years For most of us, the difference NSURING s & ECURING How Our Products & Services Work For You - Part 2 between really enjoying our retirement years and just existing from one day to the next is income. Adequate income at retirement can mean financial independence and peace of mind. It can mean doing all the things we have worked toward during a lifetime of effort. But how much income will we need at retirement? Where will it come from when our salaries or wages stop? The amount of income we will need depends on the standard of living we wish to maintain. Social Security and other pension benefits may provide a modest monthly income, but, as many people discover to their dismay, it still costs a lot to live after you retire, and the limited amounts available from government and company pension plans often don’t provide as much income as people need. However, millions of others — the men and women who realize that retirement is what you make it — assure themselves of comfortable incomes in advance. During their productive years, they arrange to supplement their retirement benefits with another source of income. One of the best ways to save for your retirement is by investing in a William Penn Annuity. The William Penn offers a variety of annuity plans from which you can choose based on your individual needs. Each William Penn annuity provides you with more financial security during your retirement years. But, with all of the other types of savings plans and investments available, what makes a William Penn annuity so attractive? The fact is that a William Penn annuity has a number of unique advantages over other plans, including: 1. It offers more income. Because it uses both principal and interest to generate income, a William Penn annuity usually can provide significantly more income for the owner than can other financial plans. 2. It is a safe investment. The owner’s money is secure with the William Penn Association. Our investment portfolio is carefully managed to achieve proper balance in growth, safety of principal and rate of interest return. 3. There are no management worries. You do not have to worry about investing your money, reinvesting it, and watching the stock and bond markets. Once you buy a William Penn annuity, the Association’s team of investment experts handles all money management problems. 4. It gets favorable tax treatment. In a deferred annuity, no tax is paid on the interest credited during the accumulation period. And for either a deferred or an immediate annuity, during the payout period (under Federal income tax law) a large part of each annuity payment is treated as a return of principal and, as such, is not taxed as ordinary income. 5. It can guarantee a lifetime income. A William Penn annuity is an ideal way to provide income you can never outlive. If, for example, you have accumulated a sufficient annuity fund to elect to receive $100 lifetime monthly income, the Association guarantees to send a check for that amount every month for as long as you live. And you can make arrangements so that, upon your death, income can be paid to whoever you name as beneficiary for life or for a specified period of time. These advantages can be put to work for you when you invest in a William Penn annuity. And we offer you a choice of three different annuity plans to meet your needs. For those planning for their future retirement, we offer either our Single Premium Deferred Retirement Annuity or our Flexible Premium Deferred Retirement Annuity. Under the Single Premium Deferred plan, you pay a onetime sum of at least $ 1,000 to the William Penn. There is no limit to the amount you may invest. Under the Flexible Premium Deferred plan, you may invest money in monthly or annual installments. The first installment, or premium, must be a minimum of $300 annually or $25 monthly. Although it is anticipated that you will make regular payments of a fixed amount thereafter, you can increase, decrease or omit subsequent payments if your financial situation or intentions change. Under both of these deferred annuity plans, the money you invest accumulates at interest until you decide to start drawing an income from your annuity (usually at retirement age). COOK BOOK HUNGARIAN SPECIALTIES and OTHER FAVORITES Net proceeds to benefit the William Penn Association Scholarship Foundation DONATION: $5.00/copy Send check or money order to: WILLIAM PENN SCHOLARSHIP FUND P.O. Box 438 Now Brunswick, NJ 08903 The William Penn guarantees 4.5 percent interest annually on the net premiums, but you may earn considerably more. Currently, we are paying 8.5 percent interest on these plans. Higher or lower interest rates may be used in the future, depending on the Association’s investment experience, but you will never earn less than 4.5 percent. Both of these plans are participating contracts, so any dividends earned may add to your cash accumulation. For those now at retirement age, we offer the Single Premium Immediate Retirement Annuity. Under this plan, you pay a single premium of at least $1,000 to the William Penn and you start drawing income from your annuity immediately. With any of our three annuity plans — Single Premium Immediate, Single Premium Deferred, or Flexible Premium Deferred — you can elect to draw income under a number of settlement options. 1. Lifetime Income-No Refund. Under this option, income is guaranteed for as long as you live. However, all payments stop when you die, and no money is paid to a beneficiary. This option is usually for people who want maximum income and have no close relatives. 2. Lifetime Income-10, 15 or 20 Years Certain. Under this option, income is guaranteed for as long as you live. If you die before the end of the payout period you select (either 10, 15 or 20 years), then income payments will be paid to your beneficiary for the balance of the payout period. 3. Installment Refund. Under this option, income is guaranteed for as long as you live. If you die before the proceeds (principal sum) are exhausted, installments of an agreed-upon amount will be paid to your beneficiary until those proceeds are exhausted. 4. Joint and 100 Percent Survivor Lifetime Income. Under this option, income is guaranteed for as long as either you or the co-owner lives. When either dies, income payments in the same amount will continue until the death of the survivor. 5. Joint and 2/3 Survivor Lifetime Income. Under this option, income is guaranteed at the 100 percent level until either you or the co-owner dies. After that, payments are reduced to two-thirds of the previous amount and continue for as long as the survivor lives. Also, for those who invest in a deferred annuity plan, there are two more payout options: (1) the proceeds can be paid cut to you in one lump sum; or (2) you can leave the proceeds on deposit with the Association at not less than 3 percent interest. Finally, if you invest in a deferred annuity and you need money for any reason during the accumulation period, the annuity is available to you as one of your assets. You can surrender the contract for its cash value or withdraw part of the cash value. However, a penalty for early withdrawal will be charged on excess interest. (The William Penn offers a wide range of insurance and savings plans that help provide our members with security and financial stability. In order to educate our members on all the products and services the Association offers, the William Penn Life is publishing a series of articles, entitled "Insuring & Securing,” explaining each product in detail. A different product or service will be featured each month.) Watch your money grow with a William Penn TAX-DEFERRED ANNUITY • The secure way of saving for your retirement • • Gauranteed life income with a variety of settlement options • • Tax on the interest during accumulation period is deferred • • Favorable tax treatment at retirement • To learn more, call your local William Penn representative ‘Interest rates subject to change without notice. Guaranteed interest rate is 4Vi%. (Annuities available ONLY to William Penn Association life-benefit members.)
