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Here's a relatively simple idea. Take the fixed-rate earnings from your Future Income Flex variable annuity1 from State Farm Life Insurance Company (Not licensed in MA, NY or WI) or State Farm Life and Accident Assurance Company (Residents of NY and WI only) 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.
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 Interest Advantage Program is based on 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.
The Interest Advantage Program could be suitable for a wide range of individuals:
To begin the Interest Advantage 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.
Prospectus and Reports
1 Please note, effective September 27, 2008, State Farm discontinued offering Variable Products. The State Farm Variable Operation Center 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 - $5,500, Age 50 and over - $6,500. Non Tax Qualified plans - $30,000. No contributions are allowed on Tax Sheltered Annuity/403b plans; current SEP plan contributions are limited to $53,000.
Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp (888-702-2307) for a prospectus or summary prospectus containing this and other information. Read it carefully.
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.
Neither State Farm® nor its agents provide tax or legal advice.
State Farm VP Management Corp. is a separate entity from those State Farm® entities which provide banking and insurance products.
Variable Deferred Life Annuity Policy series 97040, 97090, A97040, and A97090.
Not FDIC Insured
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
Each company is financially responsible for its own products.