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Here's a relatively simple idea. Take the fixed-rate earnings from your State Farm Future Income Flex variable annuity1 and shift them into professionally managed investment accounts that offer the potential for a higher return.
How? With a controlled, systematic approach that gradually shifts these assets into the subaccount of your choice -- giving you simple, convenient access to the investment potential of the stock and bond markets.
It's called the Interest Advantage Program, and it makes the complex process of reallocating your assets and managing your investments far easier and more convenient ...because it's automatic.
We call it the "advantage" program for good reason.
While you may not want to take big risks with your assets, choosing only low-return investments carries the risk that the value of your assets may not keep up with inflation. Without enough savings growth, you could fall short of realizing your future dreams.
The Interest Advantage Program enables you to explore opportunities in the stock and bond markets, without committing a large portion of your retirement savings all at once:
- The principal in your Fixed Account remains protected from market fluctuations (based on the claims-paying ability of the issuing State Farm life insurance company)
- An amount equal to your Fixed Account earnings is shifted gradually into underlying stock and bond investments each quarter. These periodic investments have the effect of "dollar-cost averaging" -- a strategy that helps reduce the risk of making investments only when unit prices are high.
- You can choose from a variety of underlying subaccounts for your new investments.
- Professional investment management of subaccounts saves you time and effort.
How does it work?
It's a simple idea. The interest earnings from your State Farm Future Income Flex variable annuity's Fixed Account are transferred quarterly into the professionally managed investment accounts (known as subaccounts) of your choice. The amount of each quarterly transfer is equal to the interest earned on your Fixed Account balance during the previous quarter. No fixed Account Principal is put at market risk, as only the amount of earned interest is moved into your subaccounts.
Is it right for you?
The Interest Advantage Program could be suitable for a wide range of individuals:
- Conservative investors who are cautious about broadening their investment mix
- Individuals who recognize there is no "perfect" time to make new investments
- Investors who seek greater diversification for their retirement savings
- Those who simply wish to explore new avenues for long-term growth potential
How to get started
To begin the program, you must have the minimum required balance of $2,500 in your Fixed Account. If this balance should fall below $500 by the end of any policy quarter, the transfer will not occur. Please see the prospectus for further details.
Find out if the Interest Advantage Program could work to your advantage. Contact your registered State Farm agent today.
1Please note, effective September 27, 2008 State Farm discontinued offering Variable Products. The Variable Operations Processing Area within the Mutual Funds Dept. continues to service all existing Variable Deferred Annuity policies. This includes additional contributions* and transfer/rollovers up to $30,000 annually.
*Tax Qualified plans - Under age 50- $5,000, Age 50 and over- $6,000. Non Tax Qualified plans- $30,000. No contributions are allowed on Tax Sheltered Annuity/403b plans; current SEP plan contributions are limited to $49,000.
Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp (1-888-702-2307) for a prospectus containing this and other information. Read it carefully. AP2013/01/0339
Investing involves risk, including potential for loss.
Variable annuities have fees and charges that include mortality and expense, administrative fees, fund expenses and may include surrender charge, transfer processing fee and additional deposit rider charge. Variable annuities are long-term investments designed for retirement purposes.
The Interest Advantage Program, dollar cost averaging, and diversification do not assure a profit or protect against loss.
State Farm Agents do not provide tax, legal or investment advice.
State Farm Variable Products Issued by:
State Farm Life Insurance Company (Not licensed in MA, NY or WI)
State Farm Life and Accident Assurance Company (Licensed in NY and WI)
Home Office, Bloomington, Illinois
State Farm VP Management Corp. is a separate entity from those State Farm entities that provide banking and insurance products.
Variable Deferred Life Annuity: Policy series 03040 & 03090 in all states except NY & WI. A03040 & A03090 in WI; A11047 & A11041 in NY.
|Not FDIC Insured|| *No Bank Guarantee
*May Lose Value