Variable Annuities in Retirement Funding

Making the right choice

There are many challenges in long-term retirement funding. The key to reaching your financial goals depends greatly upon how and where you invest your money.

Why consider a variable annuity?
Providing for a secure retirement doesn't just happen overnight, but is the result of careful preparation. A variable annuity is one investment vehicle that can help you meet the challenges of retirement funding with these key benefits for you:

  • Building retirement assets—Through unlimited contributions and the power of compounding, your principal and potential earnings can work together to help you reach your retirement goals.
  • Tax-deferred accumulation—Allows your principal and interest to grow free from the burden of taxes each year. Taxes are deferred until time of distribution.
  • Choice of investment options—Offers choices that range from the very conservative fixed accounts to the very aggressive stock portfolios which can help build your asset allocation. The investment return and principal value in a variable annuity will fluctuate, so that variable units, when redeemed, may be worth more or less than their original cost.
  • Guaranteed death benefit options—This insurance feature protects your beneficiaries from sudden market downturns and gives you greater flexibility to invest for the long term without concern about adverse market fluctuations. This guarantee is based on the claims-paying ability of the issuing insurance company.
  • Income payment you cannot outlive—A feature called "annuitization" allows you to customize a payout option that best suits your needs. You may choose to receive income payments for a predetermined number of years or for your lifetime.

Additional features to consider
Many variable annuities offer additional features to help meet your long-term needs:

  • Dollar cost averaging.
  • Automatic portfolio rebalancing.
  • Automatic accumulation unit conversion (contractual conditions apply).
  • Multi-Generational tax-deferral options.
  • Tax-free transfers among funds.
  • Unlimited contributions (non-qualified annuities).

You should carefully consider the investment objectives, risks, expenses and charges of the investment company before you invest. Your Northwestern Mutual Investment Services Registered Representative can provide you with a prospectus that will contain the information noted above, and other important information that you should read carefully before you invest or send money.

Source: Ibbotson Presentation Materials. ©2003 Ibbotson Associates, Inc. All rights reserved. Used with permission.

Revised: 8/2005

This is for illustrative purposes only and not indicative of any investment. There are certain fees and charges associated with variable annuities, which include but are not limited to: mortality and expense charges, sales charges, management fees, contract administrative fees, and distribution charges. Dollar cost averaging does not assure a profit or protect against loss in a declining market. Carefully consider your willingness to continue payments during periods of low prices. No investment strategy can assure a profit or protect against a loss. An individual should only consider passing annuity assets to a beneficiary if those assets are not required for retirement planning. Inflation and changes in tax law may adversely effect this arrangement. An individual should consult their tax or legal professional regarding the tax consequences of passing assets to a beneficiary. Past performance is no guarantee of future results.

All securities are offered through Northwestern Mutual Investment Services LLC, (NMIS), Suite 300, 611 E. Wisconsin Avenue, Milwaukee, WI 53202, 1-866-664-7737. Member NASD and SIPC. NMIS is wholly owned by Northwestern Mutual.
Charles Zittel : Northwestern Mutual
601 Union St Ste 2500 • Seattle, WA • 98101-4074
Phone: 206-777-3466
www.charleszittel.com
 

© 2010, The Northwestern Mutual Life Insurance Company/Northwestern Mutual, Milwaukee, WI. All rights reserved. 720 East Wisconsin Avenue, Milwaukee, Wisconsin 53202-4797 - (414) 271-1444.

Before you agree to receive financial planning services, please see complete information and disclosures in the NMIS Financial Planning Brochure (also called the ADV brochure) and review the terms of the NMIS Planning Engagement Agreement. These may be obtained from your Financial Advisor.

Northwestern Mutual Financial Network is the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM), and its subsidiaries and affiliates. Charles S Zittel is an Insurance Agent of NM (life insurance, annuities and disability income insurance) and Northwestern Long Term Care Insurance Company, Milwaukee, WI, a subsidiary of NM (long-term care insurance), and a Registered Representative and Investment Adviser Representative of Northwestern Mutual Investment Services, LLC, 601 Union St Ste 2500, Seattle, WA 98101-4074, 206-623-8801, a wholly-owned company of NM, broker-dealer, registered investment adviser and member FINRA (www.finra.org) and SIPC (www.sipc.org). NM and The Middleton Financial Group are not broker-dealers or registered investment advisers. There may be instances when this agent represents insurance companies in addition to NM or its affiliates.

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Charles S Zittel is primarily licensed in Washington and may be licensed in other states.

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