Engaging Conversations: Accumulation Planning

Transcription

1 3 Source: investopedia.com/calculator/fvcal.aspx. Based on annual compound interest Engaging Conversations: Accumulation Planning ACCUMULATION: A DOWNSIDE MARKET PROTECTION STRATEGY Building your savings to and through retirement A guide to meeting your accumulation needs Seeking growth when the risks are greater Meet Ben. Ben, a marketer of 30 years, is contributing the maximum amount to his employer s savings plan. He s also invested in an IRA to save even more for his retirement. In his 20s, Ben knew he had more time to recover from any market losses and had an aggressive growth strategy. But now that he s 55, Ben still wants to grow his money but is more cautious: he s adjusted his employer s retirement plan account to a more moderate strategy to help reduce his market risk. However, he hasn t decided what to do about his IRA. Ben looked at some options to potentially keep growing his money in his IRA: Invest for potential growth but with market risk OR Invest his money in safe alternatives Accumulation Planning Guide Ben s IRA portfolio is mostly invested in indexbased mutual funds. While this strategy offers him growth potential, there s the possibility of market losses too which will take time to recover. Time he may not have, depending on when he plans to retire. FYI: Recovering from losses may take time you don t have In 2008, the stock market crashed and 401(k) plan participants with $200,000 or more in their accounts saw the value of their portfolios drop by an average of more than 25%. 2 He also thought about traditional deposit products like CDs that offer relative safety. 1 But with interest rates at historic lows, would these types of products give him the growth he needed to help combat the rising costs of retirement? FYI: Inflation eats money for breakfast If you put $1,000,000 in a (very big) shoebox today, in 20 years, assuming a 2% rate of inflation, your million bucks would only be worth $672,971 in purchasing power in today s dollars. Why? Because inflation erodes the purchasing power of money. 3 Ben wants to focus on growing his money to support his future lifestyle expenses to do things he s never been able to do. But he s concerned that market declines may hinder his retirement dreams from coming true. Are his goals of growth and minimizing risk within his IRA mutually exclusive? Is there another option Ben hasn t considered? ¹ Traditional deposit products may be FDIC insured and CDs are bank products that are FDIC insured. Fixed Index annuities are insurance contracts that are guaranteed by the issuing insurance company and are not FDIC insured. 2 Source: money.usnews.com/money/retirement/articles/2009/02/12/how-did-your-401k-really-stack-up-in-2008 ANN (07-17) Accumulation Planning Guide A Downside Market Protection Case Study An RMD Strategy Case Study (01-18) Global Atlantic

2 Building your savings to and through retirement A guide to meeting your accumulation needs Accumulation Planning Guide

3 Is how much do I need? the only question? When thinking about saving for retirement, people often focus on a specific number they need to reach. How much do I need? is their primary concern, and that s definitely an important consideration. But there s another key question: How do I keep growing my retirement assets as I near and enter retirement? This is especially important as your goals evolve and your ability to accept risk changes. That s the question this planning guide is designed to help you address. 1

4 Retirement is not a finish line it s a milestone along your way. From the moment people start saving for retirement, their focus is mostly on how large their accounts need to be before they can cross the finish line. This building period is all about when, as in when can I retire? But there are many reasons why you need to keep building even as you get closer to, and start, your retirement. This becomes especially clear when you consider some of the challenges that arise along the way, including taxes, personal and emotional shifts in your risk tolerance, the need to plan for a longer lifespan, and more. Thankfully, you have quite a few possibilities to help you meet those challenges. With sound planning, you can position yourself to increase your resources throughout your forties and fifties, into your sixties and possibly even during portions of your retirement. The key is to adapt your approach as you near this milestone and even after you begin living in retirement. It s important to think about building to and through retirement. First things first: during the to retirement time, you need to make sure you save enough for the essentials, such as food, transportation, shelter and expected medical care. Those are the building blocks of your retirement. But even after you ve saved enough to meet those basic needs, there are many reasons to stay focused on building. Because it s the lifestyle you lead that will define the quality of your retirement, not whether or not you re able to hire a plumber. Traveling, dining out, engaging in new activities, spending time with family (without becoming a financial burden) these are the hallmarks of one s golden years. By creating a plan to keep building your assets, you can not only secure an income that funds your essential needs but also prepare yourself to live out a retirement filled with the lifestyle you imagine. 52% of working-age households will be at risk of being unable to maintain their standard of living in retirement. 2017, Center for Retirement Research 2

5 Assessing risk tolerance There are challenges throughout all stages of building your savings, and as you approach retirement, your tolerance for risk may change. The ability to withstand losses financially and emotionally defines your risk tolerance. If you play it too safe, you could limit your gains and be disappointed with your choices. You might also regret pursuing an overly aggressive strategy. It s vital that you consider your goals and your retirement time-frame, because those factors, along with your ability to endure certain losses financially, will affect your tolerance for risk. Addressing challenges Managing taxes Taxes are a challenge to building your finances at all stages of life, but income taxes can prove to be the single largest expense in retirement.1 How you take payments, which accounts you withdraw from, and the order in which you withdraw can all increase or reduce your tax burden. 2 % Interest rates 12.06% 5-year CD yield in ,4 0.86% 5-year CD yield in ,4 In some instances, declining interest rates can reduce your predictable income payments. Be sure you know how much of your future lifestyle depends on growth tied to these rates. Inflation $24.09 The projected cost of a $5.99 burger meal 40 years from now. 5 Even a small rise in inflation can have a big impact on retirement. A solid strategy to keep building up to and into retirement should take this into account. Possible ways to keep on building Max out your 401(k) By making the maximum contribution allowable by law each year, you reduce your current tax expense and build for the future. Pre-retirement Make catch-up contributions If you re over 50 and still in the workforce, you are allowed to put even more of your money into retirement accounts. In 2017, individuals 50 and up can contribute up to $24,000 in a 401(k) and $6,500 in an IRA. Invest in stocks and mutual funds Purchasing stocks or mutual funds might provide growth through retirement, but proceeds may require you to pay taxes. 3

6 Market swings -$2.8 trillion Approximate amount Americans lost in their 401(k)s and IRAs after the market crash of % S&P 500 gain between early 2009 and late As you near and enter the through retirement period, market declines can have a more immediate impact on your income, and your ability to weather market swings might not be as strong. Increased life expectancy years old Estimated life expectancy for women in years old Estimated life expectancy for men in It s funny to think of living longer as a risk, but when you live longer it means your income needs to live longer as well. Pre- and post-retirement Post-retirement Invest in Roth IRAs Unlike traditional IRAs, deposits to Roth IRAs are made with after-tax dollars. That means that come retirement, you ll be able to withdraw your money federal income tax free. Annuities By providing potential growth that is tax deferred, an annuity s investment earnings can accumulate and compound untouched by federal, state, or local income taxes until you begin making withdrawals, which is usually after retirement. 9 Delay Social Security benefits If you start taking Social Security at 66, you ll receive 100% of your monthly benefit. If you delay benefits for one year, you ll receive 108%, and the percentage keeps growing for every year you delay payments. By age 70, you will receive 132%. 10 Work part-time Working in retirement not only increases income but also has been found to lift energy-levels and provide higher amounts of personal satisfaction. 1 Source: finra.org/investors/taxation-retirement-income 2 Source: kiplinger.com/article/taxes/t055-c000-s002-how-6-types-of-retirement-income-are-taxed.html 3 Traditional deposit products may be FDIC insured and CDs are bank products that are FDIC insured. Fixed Index annuities are insurance contracts that are guaranteed by the issuing insurance company and are not FDIC insured. 4 Source: bankrate.com/banking/cds/historical-cd-interest-rates / 5 Calculation based on 3.54% inflation, which was the average rate for the 40 years spanning Source: urban.org/sites/default/files/publication/32481/ how-is-the-financial-crisis-affecting-retirement-savings-.pdf 7 Source: theatlantic.com/business/archive/2015/10/the-recession-hurt-americans-retirement-accounts-more-than-everyone-thought/410791/ 8 Source: abcnews.go.com/health/activeaging/humans-live-longer-2050-scientists-predict/story?id= Taxable distributions (including certain deemed distributions) are subject to ordinary income taxes, and if made prior to age 59½, may also be subject to a 10% federal income tax penalty. Distributions received from a non-qualified contract before the Annuity Commencement Date are taxable to the extent of the income on the contract. Payments from IRAs are taxable in accordance with the normal rules surrounding taxation of payments from an IRA. Early surrender charges may also apply. Withdrawals will reduce the death benefit and any optional guaranteed amounts in an amount more than the actual withdrawal. 10 Source: ssa.gov/planners/retire/1943-delay.html 4

7 Start the conversation 3 A well-planned retirement can provide some of the most fulfilling experiences and greatest times of your life. It s important to consider your strategies for building assets to and through this time. To get a full understanding of your needs and options, start a conversation with your advisor. Questions you might want to ask include Do my current retirement resources have the potential to grow during retirement? What approaches can I take to counteract the effects of inflation? Should I be making catch-up contributions? Can you help me determine my risk tolerance? Your financial professional can work with you to help you achieve your objectives with a strategy that s personalized for your retirement. 45

8 Global Atlantic Financial Group Global Atlantic Financial Group, through its subsidiaries, offers a broad range of retirement, life and reinsurance products designed to help our customers address financial challenges with confidence. A variety of options help Americans customize a strategy to fulfill their protection, accumulation, income, wealth transfer and end-of-life needs. Global Atlantic was founded at Goldman Sachs in 2004 and separated as an independent company in Its success is driven by a unique heritage that combines deep product and distribution knowledge with leading investment and risk management, alongside a strong financial foundation. globalatlantic.com Variable annuities are sold by prospectus. The prospectus contains investment objectives, risks, fees, charges, expenses, and other information regarding the variable annuity contract and the underlying investments, which should be considered carefully before investing. You can obtain a prospectus from your financial advisor or by visiting There are a multitude of different products that may be accessed for retirement and long-term care needs. For example, stocks, bonds, mutual funds and variable annuities are securities and have different risk/reward characteristics, liquidity properties and tax consequences, particularly when compared to products such as CDs, savings accounts, money market accounts and fixed annuities. Certificate of Deposits (CDs) are bank products that are FDIC insured. Money Market funds are securities and are not FDIC insured and although these funds seek to preserve the value of an investment at $1.00 per share, there is no guarantee they will maintain this value. This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your tax or legal counsel for advice. This brochure is not offering or recommending any financial planning services on behalf of Global Atlantic. Annuities are issued by Forethought Life Insurance Company, 10 West Market Street, Suite 2300, Indianapolis, Indiana. Variable annuities are underwritten and distributed by Global Atlantic Distributors, LLC. Global Atlantic Financial Group (Global Atlantic) is the marketing name for Global Atlantic Financial Group Limited and its subsidiaries, including Forethought Life Insurance Company and Accordia Life and Annuity Company. Each subsidiary is responsible for its own financial and contractual obligations. Not a bank deposit Not FDIC/NCUA insured Not insured by any federal government agency No bank guarantee May lose value Not a condition of any banking activity ANN5200 (07-17) Global Atlantic

9 ACCUMULATION: A DOWNSIDE MARKET PROTECTION STRATEGY Seeking growth when the risks are greater Meet Ben. Ben, a marketer of 30 years, is contributing the maximum amount to his employer s savings plan. He s also invested in an IRA to save even more for his retirement. In his 20s, Ben knew he had more time to recover from any market losses and had an aggressive growth strategy. But now that he s 55, Ben still wants to grow his money but is more cautious: he s adjusted his employer s retirement plan account to a more moderate strategy to help reduce his market risk. However, he hasn t decided what to do about his IRA. Ben looked at some options to potentially keep growing his money in his IRA: Invest for potential growth but with market risk OR Invest his money in safe alternatives Ben s IRA portfolio is mostly invested in indexbased mutual funds. While this strategy offers him growth potential, there s the possibility of market losses too which will take time to recover. Time he may not have, depending on when he plans to retire. He also thought about traditional deposit products like CDs that offer relative safety. 1 But with interest rates at historic lows, would these types of products give him the growth he needed to help combat the rising costs of retirement? FYI: Recovering from losses may take time you don t have In 2008, the stock market crashed and 401(k) plan participants with $200,000 or more in their accounts saw the value of their portfolios drop by an average of more than 25%. 2 FYI: Inflation eats money for breakfast If you put $1,000,000 in a (very big) shoebox today, in 20 years, assuming a 2% rate of inflation, your million bucks would only be worth $672,971 in purchasing power in today s dollars. Why? Because inflation erodes the purchasing power of money. 3 Ben wants to focus on growing his money to support his future lifestyle expenses to do things he s never been able to do. But he s concerned that market declines may hinder his retirement dreams from coming true. Are his goals of growth and minimizing risk within his IRA mutually exclusive? Is there another option Ben hasn t considered? ¹ Traditional deposit products may be FDIC insured and CDs are bank products that are FDIC insured. Fixed Index annuities are insurance contracts that are guaranteed by the issuing insurance company and are not FDIC insured. 2 Source: money.usnews.com/money/retirement/articles/2009/02/12/how-did-your-401k-really-stack-up-in Source: investopedia.com/calculator/fvcal.aspx. Based on annual compound interest ANN (07-17)

10 An alternative option: Use part of his retirement savings to purchase a ForeAccumulation fixed index annuity for: Moving forward: With ForeAccumulation, Ben will never experience any market-based losses. It locks in accrued values after every crediting period. So if Ben has elected an index-based interest crediting method that has negative performance, his contract value is not negatively impacted and there is no recovery necessary. Ben can continue to earn interest on his contract value without having to make up for a prior period s market loss, if any.4 Choice: With ForeAccumulation, the value of Ben s contract is tied to his chosen interest crediting strategies. There are a variety of choices and there are different methodologies, advantages and tradeoffs of each Ben can pick what best suits his needs. Tax-deferred growth: Ben s money will grow on a tax-deferred basis. That means faster growth since his money will earn interest on dollars that would otherwise be taxed. Accumulation benefit: One of the benefits of an FIA is the upside potential. ForeAccumulation includes a feature called Guaranteed Minimum Accumulation Value (GMAV). This can provide Ben with an increase to the contract value at the earlier of his death 5 or at the end of the withdrawal charge period. However, the GMAV equals zero and terminates at the time of any withdrawal from the contract during the withdrawal charge period (including the free withdrawal amount). 6 Accessibility: Things happen and when they do, Ben may withdraw 10% of the beginning of year contract value annually without incurring a withdrawal charge. However, any withdrawal will terminate the GMAV.7 Death benefit proceeds: Ben s beneficiaries will get back what s left of his contract value, minus any withdrawals, as a death benefit. How FIAs work $1900 Growth of $1,000 $1700 $1500 $1300 $1100 $900 FIA Return with Reset S&P 500 $700 $500 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 This chart assumes no fees, charges, or withdrawals are taken from the FIA during the illustrated period. Index past performance is not indicative of future results. The hypothetical performance of the fixed index annuity, as illustrated, assumes a $1,000 premium, a cap of 5% (using the Annual Point-to-Point with Cap crediting method) and assumes no withdrawals or surrender charges during period shown. This hypothetical example is for illustrative purposes only and not intended to be the performance of any specific product. ANN5197

11 Let s compare two different ways to grow assets for lifestyle expenses Since CDs won t give him the growth he s looking for, Ben considered the following two funding options for his IRA. Option 1: Ben keeps his money where it is Ben leaves his $100,000 IRA invested in index-based mutual funds. Account Value $100,000 $90,000 $99,000 Start of Year 1 End of Year 1 End of Year 2 Despite the 10% positive performance of the assets within his IRA, in year two, Ben s IRA value is still $1,000 less than his original $100,000. His IRA portfolio value is down 10% Account value: $90,000 Ben s IRA portfolio goes up 10% but: The 10% increase is applied to his $90,000 account value, not his original $100,000 10% x $90,000 = $9,000 $9,000 + $90,000 = $99,000 Option 2: Ben purchases ForeAccumulation Ben uses $100,000 for ForeAccumulation and chooses an interest crediting strategy linked, in part, to the S&P Contract Value $100,000 $100,000 $106,000 Start of Year 1 End of Year 1 End of Year 2 The S&P 500 Index linked to Ben s selected interest crediting method has a -10% return for the annual time period. The 10% negative performance of the S&P 500 Index linked to Ben s selected interest crediting method didn t reduce his contract value at the end of Year one. Due to the 10% positive performance of the S&P 500 Index in Year two, Ben is actually up $6,000 from his original $100,000. The S&P 500 Index linked to Ben s selected interest crediting method has a 10% return for the annual time period. Based on Ben s interest crediting method selection, his interest crediting is capped at 6%9 The 6% interest is credited to his $100,000 contract value 6% x $100,000 = $6,000 $6,000 + $100,000 = $106,000 This hypothetical example is for illustrative purposes only and is designed to illustrate the relationship between initial premium payment and growth opportunities. Assumes ForeAccumulation fixed index annuity contract purchased. A fixed index annuity is not a registered security or stock market investment and does not directly participate in any stock or equity investments or index. The Withdrawal Base is not available as a death benefit, or for surrender. Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product s benefit rules, as applicable. 2

12 Simply Speak ng What is a fixed index annuity? A fixed index annuity or FIA is a savings vehicle that offers potential growth that s linked to an equity index (or multiple indices) like the S&P A typical feature of a FIA is a guaranteed minimum crediting rate which may make them suitable for people who are unwilling to risk market losses. Similar to fixed income vehicles, a FIA may help offset the volatility of the equities in a retirement strategy. With the ForeAccumulation fixed index annuity, you get two key things: 1. A contract value This is a sum of money that grows over time and can be accessed if necessary, subject to surrender charges. Every year, your contract value is credited based on the performance of whichever interest crediting method you choose. For example, your crediting method may be tied to an index like the S&P Note that negative performance will never cause your contract value to go down in value. At worst, poor market performance will result in 0% interest crediting for the time period involved An accumulation benefit In addition to the advantages of tax-deferred growth potential and protection against market declines, ForeAccumulation offers an accumulation benefit. Here s how it works: Let s say that the crediting method you selected would result in sustained 0% interest crediting to your account. If that were to happen, the contract value would increase to the Guaranteed Minimum Accumulation Value (if it is higher than the Contract Value) at the end of the withdrawal charge period, assuming no withdrawals occur during the withdrawal charge period. 9 Please see the reverse of this flap and back page for additional important information regarding how ForeAccumulation works. ANN5197 3

13 What option did he choose? ForeAccumulation provides Ben with growth potential to help him live out his retirement dreams. After talking it through with his financial advisor, Ben chose to purchase a ForeAccumulation annuity to: Give him upside potential Protect him from market declines Help him fund his lifestyle expenses in retirement To learn more about ForeAccumulation, ask your advisor for a personalized illustration and additional product details. Ben s Case Study Assumptions: The Option 1 hypothetical example assumes a hypothetical gross -10% market decline in Year 1 and a hypothetical gross 10% growth rate in Year 2 and assumes no fees, product charges or withdrawals are taken. Option 2: Ben selects a 100% allocation to the Annual Point to Point Strategy (based on S&P 500 Index) with a cap of 6%. The 6% cap used in this example is hypothetical and not an indication of the caps currently available. An annual cap is the highest rate of interest that will be credited to a fixed index annuity annual cap strategy. Caps for each policy are guaranteed one contract year at a time, and are re-determined annually by the company for each contract. Additional Important Product Information 4 A Market Value Adjustment may be applied on withdrawals made during the withdrawal charge period. 5 State variations apply. 6 The GMAV is a separate value tracked independently from your contract value. It may grow at each contract anniversary by a stated percentage rate during the withdrawal charge period. If you wait until after your chosen withdrawal charge period to take a withdrawal, your actual account value will be compared to the GMAV at the end of the withdrawal charge period. Your Contract Value will be set to the greater of the two values. 7 Early withdrawal charges and market value adjustments may also apply. Withdrawals may reduce any optional guaranteed amounts in an amount more than the actual withdrawal. 8 The S&P 500 is an unmanaged index and is not available for direct investment. 9 Interest crediting methods vary and may involve different methodologies such as fixed rates, index caps and spreads and are declared in advance and guaranteed for the entire strategy term. An annual cap is the highest rate of interest that will be credited to a fixed index annuity annual cap strategy. Index based crediting methods credit 0% if the index performance is less than or equal to the spread.

14 This strategy may involve the purchase of a fixed index annuity (FIA) with a benefit provided for a charge. FIAs are typically meant for long-term savings purposes. Withdrawals during the early years may incur a withdrawal charge, assessed as a percentage of the withdrawal. Withdrawal charges vary by product. FIAs are insurance contracts, not securities, and do not directly participate in any stock, bond, or equity investments. Contract owners are not buying shares of any stock or index, even though index performance may indirectly affect contract values. Index-based crediting methods may experience years with 0% crediting. Though crediting is determined, in part, by the performance of an equity index, the credited rate is typically subject to a cap or a spread. Additional benefits vary by product and may be subject to charges. Indices are not available for direct investment. globalatlantic.com This material is intended to provide educational information regarding the features and mechanics of the product and is intended for use with the general public. It should not be considered, and does not constitute, personalized investment advice. The issuing insurance company is not an investment adviser nor registered as such with the SEC or any state securities regulatory authority. It s not acting in any fiduciary capacity with respect to any contract and/or investment. Guarantees are based on the claims-paying ability of Forethought Life Insurance Company and assume compliance with the product s benefit rules, as applicable. There are a multitude of different products that may be accessed for retirement and long-term care needs. For example, stocks, bonds, mutual funds and variable annuities are securities and have different risk/reward characteristics, liquidity properties and tax consequences, particularly when compared to products such as CDs, savings accounts, money market accounts and fixed annuities. Certificate of Deposits (CDs) are bank products that are FDIC insured. Money Market funds are securities and are not FDIC insured and although these funds seek to preserve the value of an investment at $1.00 per share, there is no guarantee they will maintain this value. If you are investing in a fixed index annuity through a tax-advantaged retirement plan such as an IRA, you will receive no additional tax advantage from a fixed index annuity. Under these circumstances, you should only consider buying a fixed index annuity if it makes sense because of the annuity s other features, such as lifetime income payments and death benefit protection. Taxable distributions (including certain deemed distributions) are subject to ordinary income taxes, and if made prior to age 59½, may also be subject to a 10% federal income tax penalty. Distributions received from a non-qualified contract before the Annuity Commencement Date are taxable to the extent of the income on the contract. Payments from IRAs are taxable in accordance with the normal rules surrounding taxation of payments from an IRA. Early surrender charges may also apply. Withdrawals will reduce the death benefit and any optional guaranteed amounts in an amount more than the actual withdrawal. This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your tax or legal counsel for advice. The issuing insurance company is not an investment adviser nor registered as such with the SEC or any state securities regulatory authority. It is not acting in any fiduciary capacity with respect to your investment. This information does not constitute personalized investment advice or financial planning advice. ForeAccumulation fixed index annuity is issued by Forethought Life Insurance Company, 10 West Market Street, Suite 2300, Indianapolis, Indiana. Available in most states with contract FL-FIA-13 and ICC14-FL-FIA. Global Atlantic Financial Group (Global Atlantic) is the marketing name for Global Atlantic Financial Group Limited and its subsidiaries, including Forethought Life Insurance Company and Accordia Life and Annuity Company. Each subsidiary is responsible for its own financial and contractual obligations. The S&P 500 Index is a product of S&P Dow Jones Indices LLC or its affiliates ( SPDJI ) and has been licensed for use by Forethought Life Insurance Company. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and these trademarks have been licensed for use by SPDJI and sublicenses for certain purposes by Forethought Life Insurance Company. Forethought Life Insurance Company s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index. Indices are not available for direct investment. Not a bank deposit Not FDIC/NCUA insured Not insured by any federal government agency No bank guarantee May lose value Not a condition of any banking activity ANN (07-17) Global Atlantic