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   Principal Protected Income Solutions

Simple:  Once a MYGA is funded, the only work on your part is to collect your regular payments (which can be added to your contract to enjoy tax-deferred compound growth or sent directly to your bank account).

Sound:  MYGAs are not subject to penalties or market losses if held to maturity.*

Secure:  MYGAs provide a fixed rate of interest for a guaranteed term, typically as short as three years and up to 10 years.

Safety of principal:  Your principal is fully protected and guaranteed by the assets of the insurer.  We work with only the highest rated insurance companies in the industry.

Potential higher income payments:  MYGA interest rates are typically higher (though not always) than CD rates.

Free withdrawals (most contracts):  Most (not all) MYGA contracts allow you to withdraw up to a specified percentage of interest and/or principal each year during the life of the contract without being subject to an early surrender charge.

Preferred tax treatment:  Unlike a CD, the interest on MYGAs compounds annually tax-deferred in non-qualified accounts (for example, assets held in individual or joint accounts) until the money is withdrawn.  MYGAs may also be a good strategy to defer taxes until later in retirement when you may be taxed at a lower rate.

Taxes on Social Security:  Depending upon your Social Security benefits, your income, and the sources of your income during retirement, potentially up to 85% of your Social Security benefits may be taxed.  By controlling  the timing of distributions from your MYGA, you may be able to help reduce the amount and rate of taxation on your Social Security benefits.

Avoids probate:  Any remainder in your MYGA can usually efficiently pass outside of probate and paid to your heirs within days after all required paperwork is received in good order.  That allows your loved ones to bypass the long, painful and costly probate process - saving them time, court costs, administrative costs and legal fees - and leaves your heirs money instead of family court battles and legal fees.

Protection from creditors and predators:  If you are a high net worth individual looking for both principal and creditor and predator protection - fixed annuities are fully protected and shielded from creditors and frivolous lawsuits in certain states - and can provide the legal and safety net to fully protect your assets.  

No annual fees.

Can be used to create MYGA Income Ladders.

Similar to CDs that pay a fixed rate of interest for a set period of time, Multi-Year Guarantee Annuities ("MYGA") are simple to understand and pay you a guaranteed annual fixed rate of interest for the entire contract period.  The primary functional difference between a MYGA and a CD is with MYGAs held in non-qualified accounts (for example, assets held in individual or joint accounts) - you don't pay taxes on the interest until the money is withdrawn - so your interest can grow and compound tax-deferred.  With CDs held in non-qualified accounts, you have to pay taxes on the interest annually.

Key Features And Advantages

The Principal Protected Income Solutions are designed to deliver you income and fully protect your principal from any market downturn. 


We offer several different fixed annuity alternatives to help solve for your retirement income needs, principal protection and/or to help you enjoy the benefit of tax-deferred compound growth.  Following are some comprehensive descriptions of the different types of fixed annuities clients may benefit from - to provide you with a basic understanding of how they work, their key features and potential benefits for you.

Delivering You Income And Principal Protection

Below is a sample of Multi-Year Guarantee Annuity Rates as of the date shown below.  Prices, ratings, yields, rates and availability shown are subject to change at any time.

Green Pastures is a big proponent of keeping things simple.  When you get to a certain point in life, there's a tendency to want to simplify your life - including your investment portfolio - and fixed annuities can help you accomplish this goal.  


We believe the best way to use fixed annuities is in conjunction with your investment portfolio.  Green Pastures complements the investment management programs with fixed annuities (MYGAs, Traditional Fixed Annuities and FIAs) to help construct retirement income portfolios. 


While fixed annuities aren't for everyone, they are great transfer of risk solution that specifically solve for income (that can grow and compound tax-deferred) and principal protection.  If you need to solve for one of these items, then you may want to consider adding a fixed annuity to your investment portfolio.  The best way to gain an understanding of how MYGAs, Traditional Fixed Annuities FIAs work is to request a Personalized Annuity Illustration unique to your situation - which Green Pastures will be happy to provide.

Summary

* The insurance company charges no liquidation penalty if held until maturity; however, similar to assets held in an IRA, Traditional Fixed Annuities are typically designed for long-term tax-deferred investing.  If you take withdrawals before you reach age 59 1/2, then you may have to pay a 10% early withdrawal federal tax penalty in addition to ordinary income taxes.  You should request and review a product Fact Sheet, for complete information and restrictions that may apply, prior to making any decision to purchase a Traditional Fixed Annuity product.

Key Features And Advantages

Traditional Fixed Annuities

* The insurance company charges no liquidation penalty if held until maturity; however, similar to assets held in an IRA, MYGAs are typically designed for long-term tax-deferred investing.  If you take withdrawals before you reach age 59 1/2, then you may have to pay a 10% early withdrawal federal tax penalty in addition to ordinary income taxes.  You should request and review a product Fact Sheet, for complete information and restrictions that may apply, prior to making any decision to purchase a MYGA product.

Multi-Year Guarantee Annuities ("MYGA")

Contrary to the oftentimes misleading sales pitches that you may hear about Fixed Indexed Annuities, they are NOT investments with market-like returns.  The reality is that 

Fixed Index Annuities ("FIAs") were designed to compete with CDs, bonds and other fixed-income products - not the stock market.  A FIA is not an investment in the stock market - and contrary to what many investors believe - FIAs are not variable annuities.  


FIAs protect your principal and offer you a unique "floor-with-upside" method of crediting interest.  FIAs will pay you a minimum guaranteed rate of return for the life of the contract (the "floor") - but also provide you with the potential to earn higher interest rates via other interest rate crediting strategies (the "upside") - and you earn the higher of the "floor" or "upside", for the life of the contract.  You don't pay taxes on the interest until the money is withdrawn - so your interest can grow and compound tax-deferred.  


While the 10-year Treasury has unfortunately hovered around three percent for the past few years, everyone is searching for yield.  But most importantly, folks want to make sure their principal is safe and fully protected - and that's a difficult combination.  With FIAs, your principal is protected - and there is a possibility for gains a little higher than most tax-deferred fixed annuity products.


Interest Rate Crediting Strategies

Most FIAs typically offer several interest rate crediting strategies to choose from.  One of the more common interest rate crediting strategies provides you with the potential to earn interest at rates capped to a portion of the annual contract anniversary increase in the Standard & Poor's 500 Composite Stock Price Index (the "S&P 500").  For example, one FIA that Green Pastures works with recently announced an interest rate crediting strategy that is capped at 5.40% of the increase in the S&P 500 for the first contract anniversary year.  [Note: The 5.40% rate cap became effective 10/21/2017 and is subject to change at any time.]


For purposes of analysis, let's assume you invest in this FIA, and you select an interest rate crediting strategy that is capped at 5.40% of the increase in the S&P 500 for the first contract year:

(1) Worst Case Scenario: If the S&P 500 loses money over the next 12 months, then this interest rate crediting strategy will earn 0% interest for the first contract year - it is guaranteed NOT to lose any money - even if the S&P 500 crashes like in 2008;

(2) Middle Of The Road Scenario: If the S&P 500 gains anywhere between 0% and 5.40% (the assumed cap for this example for the 1st contract year), then this interest rate crediting strategy will earn that same percentage of interest for the first contract year; and

(3) Best Case Scenario: If the S&P 500 gains greater than 5.40% (the assumed cap for this example for the 1st contract year), then this interest rate crediting strategy will earn 5.40% for the first contract year.


Notes:

(a) The interest rate crediting strategy gains are locked in annually on each contract anniversary date, 

(b) the interest rate crediting strategies typically can be changed annually throughout the contract period (and you typically can combine different interest rate crediting strategies),

(c) the interest rate crediting strategy caps typically change each year, and

(d) the ratings, fixed rates and availability are subject to change at any time.


Lastly, most FIAs also offer an option for you to create your own "pension-like" guaranteed income stream for life that begins if and when you decide to annuitize the contract at a later date.


FIAs come with a variety of features, options and complexity.  You should review a FIA Client-Approved Video, brochure and Personalized Annuity Illustration unique to your situation, for complete information and restrictions that may apply, prior to making any decision to purchase a Fixed Index Annuity - which Green Pastures will be happy to provide you with.

Fixed Index Annuities ("FIA")

Unlike MYGAs that pay you a guaranteed annual fixed rate of interest for the entire contract period, Traditional Fixed Annuities pay you a fixed rate of interest for an initial period (typically the first one to three years) of the entire contract period - and the interest rate typically adjusts on an annual basis thereafter for the remainder of the contract period - designed to help you potentially benefit from a rising interest rate environment.  Similar to MYGAs, Traditional Fixed Annuities held in non-qualified accounts also enable your interest to grow and compound tax-deferred.

To learn more about how you may benefit from Green Pastures Principal Protected Income Solutions, please call us at 203.452.8100 or 866.479.3258 or email us via the Contact Us tab.


Also, go to the Home Page and sign up to receive our free Monthly E-Update, which includes interest rate updates for Green Pastures Principal Protected Income Solutions and other fixed-income opportunities.

Key Features And Advantages

* The insurance company charges no liquidation penalty if held until maturity; however, similar to assets held in an IRA, FIAs are typically designed for long-term tax-deferred investing.  If you take withdrawals before you reach age 59 1/2, then you may have to pay a 10% early withdrawal federal tax penalty in addition to ordinary income taxes.  You should request and review a product Fact Sheet, for complete information and restrictions that may apply, prior to making any decision to purchase a FIA product.

Simple:  Once a Traditional Fixed Annuity is funded, the only work on your part is to collect your regular payments (which can be added to your contract to enjoy tax-deferred compound growth or sent directly to your bank account).

Sound:  Traditional Fixed Annuities are not subject to penalties or market losses if held to maturity.*

Safety of principal:  Your principal is fully protected and guaranteed by the assets of the insurer.  We work with only the highest rated insurance companies in the industry.

Free withdrawals (most contracts):  Most (not all) Traditional Fixed Annuity contracts allow you to withdraw up to a specified percentage of interest and/or principal each year during the life of the contract without being subject to an early surrender charge.

Preferred tax treatment:  Unlike a CD, the interest on Traditional Fixed Annuities compounds annually tax-deferred in non-qualified accounts (for example, assets held in individual or joint accounts) until the money is withdrawn.  Traditional Fixed Annuities may also be a good strategy to defer taxes until later in retirement when you may be taxed at a lower rate.

Taxes on Social Security:  Depending upon your Social Security benefits, your income, and the sources of your income during retirement, potentially up to 85% of your Social Security benefits may be taxed.  By controlling  the timing of distributions from your Traditional Fixed Annuity, you may be able to help reduce the amount and rate of taxation on your Social Security benefits.

Avoids probate:  Any remainder in your Traditional Fixed Annuity can usually efficiently pass outside of probate and paid to your heirs within days after all required paperwork is received in good order.  That allows your loved ones to bypass the long, painful and costly probate process - saving them time, court costs, administrative costs and legal fees - and leaves your heirs money instead of family court battles and legal fees.

Protection from creditors and predators:  If you are a high net worth individual looking for both principal and creditor and predator protection - fixed annuities are fully protected and shielded from creditors and frivolous lawsuits in certain states - and can provide the legal and safety net to fully protect your assets.  

No annual fees.

Multi-Year Guarantee Annuity Sample Rates

Sound:  FIAs are not subject to penalties or market losses if held to maturity.*

Safety of principal:  Your principal is fully protected and guaranteed by the assets of the insurer.  We work with only the highest rated insurance companies in the industry.

Free withdrawals (most contracts):  Most (not all) FIA contracts allow you to withdraw up to a specified percentage of interest and/or principal each year during the life of the contract without being subject to an early surrender charge.

>  Preferred Tax Treatment:  Unlike a CD, the interest on FIAs compounds annually tax-deferred in non-qualified accounts (for example, assets held in individual or joint accounts) until the money is withdrawn.  FIAs may also be a good strategy to defer taxes until later in retirement when you may be taxed at a lower rate.

Taxes on Social Security:  Depending upon your Social Security benefits, your income, and the sources of your income during retirement, potentially up to 85% of your Social Security benefits may be taxed.  By controlling  the timing of distributions from your FIA, you may be able to help reduce the amount and rate of taxation on your Social Security benefits.

Avoids probate:  Any remainder in your FIA can usually efficiently pass outside of probate and paid to your heirs within days after all required paperwork is received in good order.  That allows your loved ones to bypass the long, painful and costly probate process - saving them time, court costs, administrative costs and legal fees - and leaves your heirs money instead of family court battles and legal fees.

Protection from creditors and predators:  If you are a high net worth individual looking for both principal and creditor and predator protection - fixed annuities are fully protected and shielded from creditors and frivolous lawsuits in certain states - and can provide the legal and safety net to fully protect your assets.  

No annual fees (if no riders are attached).

Can potentially earn gains a little higher than most fixed annuity products.