- Tax-deferred growth potential. Retirement savings grow tax-free until withdrawal at retirement.
- Guaranteed income. In addition to annuitization, the optional GLWB rider allows an investor to secure an annual lifetime income stream equal to five percent of a protected payment base that locks in the highest contract anniversary value achieved since purchase of the rider.
- Pricing. The base fee is 60 basis points – less than half of the industry average of 134 basis points, according to Morningstar 1 – and each of the underlying portfolios has an investment expense ratio of 80 basis points. The GLWB rider can be added at any time until age 85 for 80 basis points, or for 100 basis points for a joint GLWB. There are no hidden charges or surrender fees.
- Investments and access. Schwab clients have three simple portfolios to choose from – balanced, balanced with growth and growth – each is broadly diversified and professionally managed by Charles Schwab Investment Management, Inc. If an investor’s needs change over time, he or she can transfer among these three investment choices, tax-free. With the GLWB option, investors can also access their annuity assets and withdraw them for emergencies or unexpected expenses 2, even while they are taking lifetime income (investors should be aware that the GWLB is not a contract value and is not available for withdrawal like a cash value and that their actual contract value and death benefit will deplete with each withdrawal).
- Professional guidance. By sitting down with any of Schwab’s 1200+ financial consultants to talk about their retirement planning options, investors get tailored advice and professional help in determining whether the SRIVA or other annuity options are right for their retirement income needs.
All About Annuities (Infographic Courtesy Of Charles Schwab & Co., Inc. 0912-5784)
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