WEST CHESTER, Pa., June 14 /PRNewswire-FirstCall/ — With the goal of expanding its available suite of solutions to help consumers better prepare for retirement, ING introduced two new registered fixed-index annuities to the marketplace today. ING Select Multi-Index 5 and ING Select Multi-Index 7, both modified single-premium deferred annuities issued by ING Life Insurance and Annuity Company, offer an alternative to traditional fixed annuities through an index strategy that can link a client’s potential for annual growth to the performance of up to four well-known market indexes.
Investors who purchase ING Select Multi-Index 5 or ING Select Multi-Index 7 are given the choice to link their annual interest crediting, in part, to any combination of the S&P 500 Index®, S&P MidCap 400 Index®, Russell 2000 Index® and EURO STOXX 50 Index® as well as a fixed-rate strategy. Investors are not invested directly in these indexes.
“Now more than ever, baby boomers are being cautious with their retirement savings, but many want more upside potential than what they can earn from many traditional fixed investments without risking their principal,” according to Lynne Ford, CEO of ING Financial Solutions, “ING Select Multi-Index 5 and ING Select Multi-Index 7 give both downside protection and some upside potential to benefit from market gains. With multiple indexes and the ability to choose the mix of how the money is allocated, these products can fit well with a variety of retirement portfolios,” she added.
In late 2009, ING’s U.S. operations merged its annuity and rollover businesses into a new business unit called ING Financial Solutions. ING Select Multi-Index 5 and ING Select Multi-Index 7 were developed as part of a suite of simpler retirement solutions began rolling out earlier this year. Since then, several new solutions-oriented products, including a multi-manager mutual fund custodial IRA account, a registered fixed annuity, and a lower-cost variable annuity, have been introduced.
ING will still continue to offer non-registered fixed index annuities issued by ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York. According to Ford, the new products complement the company’s current fixed-index offering. “The expertise we have gained in the non-registered fixed-index market has allowed us to identify new opportunities for our registered products where our non-registered products are not being sold. Offering registered fixed-index annuities gives us products that we can make available to many banks and full-service brokerage firms, which are looking for more conservative solutions for their clients in this challenging environment.”
For more information, please contact an ING Financial Solutions wholesaler, the ING Financial Solutions Sales Team at (800) 344-6860, or ING Financial Advisers at (866) 201-3693.
ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services to over 85 million private, corporate and institutional clients in more than 40 countries. With a diverse workforce of about 107,000 people, ING is dedicated to setting the standard in helping our clients manage their financial future.
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I am just learning about fixed annuities. I was wondering if it is right for me and what fees and limitations exist. For example, I heard that a percentage is charged for fee as well as setting a cap on interest rates of investments. Not sure that makes sense, but I am sure whoever reads this understands my question. Also, I am interested in both pre tax and tax deferred options. Thanks.
Hi Steve,
I am not able to say if a fixed annuity is ‘right’ for you without knowing more information about your financial situation and / or risk tolerance as those are important factors with the purchase of any type of financial product(s). There are index annuities which provide what is commonly referred to as upside potential with downside protection. What this means is that an index annuity owner has the possibility of receiving a better return than owning a traditional fixed interest rate annuity and also removes any risk of a reduction in value if the index the annuity is tied to goes down in value. Most fixed annuities (either indexed or fixed interest rate) seldom have any type of fees associated with them that deduct from the value of the annuity. Index annuities do have limits or ‘caps’ on their growth possibility due to the design of the product but these caps still allow for growth within the policy. Regarding the tax question, I will first say that neither I nor WholesaleInsurance.net or its employees provide tax advice. For your own specific tax situation, please consult your own tax advisor or CPA. For pre-tax annuities, there are options available to have qualified (pre-tax) funds used as the premium for annuities as well as tax-deferred options.
I would be happy to discuss these with you in more detail and also discuss your specific situation to see if you would be interested in purchasing an annuity.
Thank you for your inquiry,
Matt Tryon
Annuity Brokerage Director
Twitter: http://twitter.com/WholesaleINS
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