New York Life’s newest annuity is aimed at Baby Boomers who are planning to retire in two years or more. The Income Plus Variable Annuity provides guaranteed lifetime income for the future and protects your money in volatile markets. In Plan Adviser’s “NY Life Rolls Out Income Plus Variable Annuity,” Kristen Heinzinger says that this product is best used as a long term investment. Not only will it allow you to defer your taxes, it also offers the ability to access your savings and a multitude of options to choose from when looking for investments that will grow. The added death benefit makes this annuity a great choice for investors who want to leave something to their beneficiaries.
When you purchase this deferred annuity, you choose a time period between two and forty years when you will start receiving your guaranteed income stream. During that time frame, you choose which mutual funds to invest in and take advantage of any market growth. Your guaranteed income payments will not be any lower if there is a decreasing equity market. But if you have gains above and beyond what you need to finance your monthly income, you get to take that money however you’d like. You can add it to your monthly income payments to receive more or take the surplus and spend as you see fit.
There is a free Income Benefit rider attached to the Income Plus Variable Annuity. This means that you use the money in your annuity to guarantee your monthly income stream, which will start when you choose. It doesn’t provide your minimum level of guarantee right at purchase, however. If you want to get this minimum level of guaranteed monthly income payments right from the start, you pay an additional annual fee for the Guaranteed Future Income Benefit rider. In the case of a market increase, your payments will also increase when you start receiving them. If you opt for this additional rider, you pay for it up front with a single premium. New York Life’s newest variable annuity has a lot to offer investors. Speak with an expert if you have more questions about this annuity product.
Written by Rachel Summit
Follow Finance Mama on Twitter https://twitter.com/#!/financemama
