Empire Life Restricts all new deposits to ClassPlusI GMWB
If you have been sitting on the fence wondering if a GMWB is right for you or not, the time is running out for this great Savings and Income Solution.
In a bid to slow down the flood of deposits into Empire Life’s ClassPlus GMWB, a new announcement was made on November 19th 2012 by Empire Life to all of their potential depositors. Get your money in, and get it in quick.
With Long Term Interest rates, holding at their all time low, and new Capital Reserve requirements set out after the Financial Crisis of 2008, Companies are finding it very challenging to offer great GMWB products with all of their attractive Savings and Income Guarantees.
Here is a breakdown of the changes to Empire Life’s current ClassPlus Accounts:
1. Maximum Deposit for the year of 2012 will be a maximum of $50,000 for current account holders and new accounts opened prior to December 31st.
2. For current account holders there will be a maximum contribution amount of $25,000 for 2013.
3. There has been no guarantee of deposit amounts past 2013.
4. Savings rate guarantee stays at 5% (Contractual) and Income amount is guaranteed at 5% for life (Contractual), or the RRIF minimum, whichever is greater.
5. All deposits made prior to December 31st will receive the full 5% interest credit to their Income Base account. They are not prorated.
A new ClassPlus to be introduced in 2013, called ClassPlus II
1. There will be no deposit maximums such as in ClassPlus I
2. Deposit minimums will be $10,000 per account holder.
3. Fees will increase by .25% on all funds.
4. Income Payout will now be reduced at age of 65 to 3.5% of account value, but will increase the longer you choose to defer your Income.
5. Empire will still have the lowest fees of all GMWB providers.
6. You will still receive the full 5% Income Base Bonus, even if you deposit in the middle of the year.
So if you have been sitting on the fence with this decision, there are only 14 days left in 2012 to take advantage of this fantastic investment opportunity.
A GMWB gives you the Base Guarantee on growth of 5% in your Savings years, or the Market Value, whichever is Higher. And an Income solution at Retirement, that guarantees you will never run out of money, no matter how the markets perform into the future or how long you may live.
The perfect Personal Pension for those who do not have the luxury of owning one where they work…
Here are three situations where a GMWB makes perfect sense.
1. You have an RRSP at your financial institution, that you get little or no direction or plan from the “Bank Advisors”
2. You have a Locked in Retirement Account (LIRA) that gives you little or no control over the success or failure of the account.
3. You are between the ages of 40-60, and want to know how much Income you will have at retirement, Guaranteed.
Download the Income Stability Report and see how this Investment can compliment your Retirement Income Years…
content by Steffen deGraaf