Set Sail Towards Retirement
A time-tested tool may help you get a smoother ride
|Planning to invest in a variable annuity to save for retirement? If you are not sure about when to invest or how to negotiate today's financial markets, consider this time-tested tool: dollar cost averaging (DCA). Dollar cost averaging lets you stagger your investments over time instead of investing your money all at once.||
To learn more about dollar cost averaging and the
In addition to all of the other benefits that variable annuities provide, select New York Life Variable Annuities offer a 6-month DCA Advantage Account which allows you to:
- Lock in an interest rate for 6 months while your money is in the Account
- Put your money to work for you from day one, earning a guaranteed interest rate as you strategically enter the market over time.
- Help smooth market volatility and potentially purchase more units at a lower cost
A variable annuity is a long-term investment used for retirement savings in which all potential interest, dividends, and capital gains accumulate tax-deferred. There are contract limitations, fees, expenses and risks associated with variable annuity contracts. All guarantees, including the death benefit payments, are dependent on the claims-paying ability of New York Life Insurance and Annuity Corporation (NYLIAC) and do not apply to the underlying Investment Divisions in the variable annuity. As such, the investment return and principal value of a variable annuity will fluctuate; therefore an investor's units, when redeemed, may be worth more or less than his or her original cost. Withdrawals and surrenders may be subject to ordinary income taxes, and if made prior to age 59½, may be subject to a 10% IRS penalty tax (25% for SIMPLE IRA distributions in the first two years). Dollar cost averaging may help investors achieve a lower average purchase price, but it does not guarantee a profit nor protect against a loss. What makes dollar cost averaging effective is making continuous payments at regularly scheduled intervals; therefore, investors should consider their ability to continue making purchases through periods of low price levels. The DCA Advantage Account should not be used as the sole criteria to make a decision to purchase a variable annuity. Investors should only consider buying a variable annuity if it makes sense because of the annuity’s combination of features, including the death benefit protection. Only new premium payments may be allocated to the DCA Advantage Accounts. Transfers are not permitted from the DCA Advantage Account into the Fixed Account. Premium payments into the DCA Advantage Accounts will receive the interest rate in effect on the date the premium is deposited. Money in the DCA Advantage Accounts only earns the DCA Advantage Account interest rate while it is in the account waiting to be transferred into the Investment Divisions.
This material is authorized for use by the public only if preceded or accompanied by product and fund prospectuses. Please carefully consider the investment objectives, risks, charges and expenses of the variable annuity carefully before investing. This and other information can be found in the product and funds prospectuses. Please read the prospectuses carefully before investing or sending money.
Not all products are available in all jurisdictions. In most jurisdictions the New York Life Premier Variable Annuity policy form number is 208-191 and the New York Life Premier Plus Variable Annuity policy form number is 208-192.
Variable Annuities are issued by NYLIAC (A Delaware Corporation) and distributed by NYLIFE Distributors LLC, Member FINRA/SIPC. Both are wholly owned subsidiaries of New York Life Insurance Company. 51 Madison Avenue, New York, NY 10010
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|New York Life - Dollar Cost Averaging and the 6-Month DCA Advantage Account|