Steady income during financial crisis

Learn how Doris' new plan gave her guaranteed income despite market volatility.

Meet Doris

When Doris retired, she had $500,000 in savings, spread across a fee-based IRA account and a trust. By 2005, her IRA assets had nearly depleted from a combination of poor market performance and withdrawals. She was concerned that she wouldn’t be able to maintain her lifestyle and provide for her family.

Her financial advisor recommended investing the $151,035 that remained in her IRA account into a variable annuity with a living benefit that guaranteed monthly income payments of $608.

After the market crash in 2008, the account value fell to $122,000. However, her guaranteed monthly income payments of $608 continued because they were based on her higher initial investment (not on the account value). In addition, because of later positive market performance, she was able to receive more than her guaranteed $608 in some years.

In 2015, Doris continues to receive this monthly income and will do so for life. Had Doris placed her IRA assets into a traditional mutual fund or remained in the fee-based account, there would have been a dramatic impact on her account value that would not have produced the same level of monthly income.

Annuity vs traditional Chart

Protecting Income Chart