05/26/2026
🤔How One Simple Decision Can Turn 20 Years of $40,000 Withdrawals into 26 Years from $1 Million — Without Ever Invading Principal ⬅️
⬆️With annuity rates having increased significantly, some of the strongest minimum crediting rates in years are available right now. But the question on everyone’s mind is: will they last?
✏️Consider a $1,000,000 single-premium deferred annuity currently earning 5.3% for the first 10 years, with a strong minimum guarantee of never less than 2.6% thereafter.
💰When $40,000 annual withdrawals begin immediately in contract year 1, the annuity value remains above the original $1 million principal through the end of year 20 (age 80). In year 21 (age 81), the account value drops below $1 million — meaning continued withdrawals begin invading principal.
🧠 Now consider the impact of one simple adjustment: waiting just one year before starting those same $40,000 annual withdrawals.
That additional year of uninterrupted tax-deferred compounding changes everything.
⌚️ By delaying withdrawals for only one year, the annuity value remains above the original $1 million principal until approximately year 27 (age 87). This allows the client to receive the full $40,000 annual income for 26 full years before the account balance begins to dip below the starting principal.
📚This side-by-side comparison highlights the powerful impact of strategic timing. In today’s elevated-rate environment, a single additional year of growth can potentially create six more years of principal-protected income — all supported by one of the strongest minimum guarantees available.
Above is a compelling illustration of why locking in current rates and guarantees now may meaningfully extend the longevity of retirement assets, even if interest rates decline in the future.
Please feel free to contact me with any questions.
Jeff Affronti - 800.373.9697
IMPORTANT INFORMATION:
· This material is for informational, educational & entertainment purposes.
· It is not a recommendation to buy, sell, hold or rollover any asset.
· It does not take into account the specific financial situation, investment objectives, or insurance need of an individual person.
· Withdrawals may be subject to ordinary income taxes and, if made prior to age 59½, may be subject to a 10% IRS penalty.
· Surrender charges may also apply for early or excess withdrawals.
· All guarantees are backed by the claims-paying ability of the issuer.
· Products are available only in all states where approved.
· Please note: Illustrated rates and payments are subject to change.
· For the latest ratings, access web.ambest. com/home
