Invest with Certainty in an Uncertain world…

GMWBIt all started in the summer of 2008 when bankers and government officials were secretly meeting behind closed doors to see how the world could handle the worst financial crisis since the great depression. It would come to be known as the Financial Meltdown of 2008, and in many cases nearly 4 years later, we still haven’t recovered from the meltdown. Accompany that with all the troubles in the EuroZone, combined with the rising price of oil and you have a lot of uncertainty in the Markets.

So this creates a sentiment from investors that they do not feel comfortable contributing to their future savings program, even though the Markets have always outperformed every other way to invest for your future. But if you are in your Retirement Risk zone, watching your portfolio of assets go up and down is not very comforting.

Your retirement risk zone is 10 years before and after your anticipated retirement date. So if you are between the ages of 50 and 70, this could be the solution you have been looking for.

It is called a GMWB, or a Guaranteed Minimum Withdrawal Benefit investment solution, and these are the benefits. A GMWB allows you to invest in the markets, but have the confidence that even if the market’s decline, you will get a Guaranteed Income Base bonus of 5% per year, or the Market value, whichever is higher. And since GIC rates hover between 1-3%, this is a great alternative which provides both a guaranteed return, and the safety of your principle.

GMWB’s were introduced by Manulife back in 2007 under the name of IncomePlus, and since then, Canadians have invested Tens of Billions of dollars into GMWB products. As investors flood this market for safety and security, many other Canadian Insurers have also introduced their own GMWB, so now the choices and selection available will satisfy any investor’s needs.

The second benefit to GMWB’s is the ability to turn your Savings account into an Income account, with the benefit of receiving Guaranteed Income for Life. This means that no matter how long you live, you will receive your Income; Guaranteed. In essence it is similar to a Life Annuity, but the balance of your account that you do not use within your lifetime goes to your beneficiary, and not the Insurance Company.

By using this strategy, you guarantee your financial future, whether you live to 80, 90 or even 100 you are always guaranteed your minimum payment every month. This is why we call it your personal pension.

There are many different options available for you as an investor, and there are good and bad products out there just like everything else, but by having a simple review you can uncover how a GMWB can give you the peace and security you need to have a sound financial future into retirement.

Call our office today to see how you can implement a GMWB into your retirement plan, or to receive the Free Report “Income Stability in an Unstable World”.

Steffen deGraaf