Select Fixed Annuity 

 

Are you looking for a safe alternative to the stock market? Do you want a product that offers you competitive fixed rates from a company that is an industry leader, recognized for its financial strength?

The Select Fixed Annuity offered through Northwestern Mutual provides you a safe, simple and secure investment in which your earnings grow tax-deferred. Whether you are looking to accumulate wealth or manage risk, a Northwestern Mutual Select Fixed Annuity can play an important role in your retirement portfolio.

A Northwestern Mutual fixed annuity can help at various stages when planning for your financial security:

Wealth Preservation and Distribution:

  • Safety of principal
  • Income supplement to Social Security and other retirement savings to assist you in maintaining your standard of living
  • Beneficiary options upon death of annuitant

Wealth Accumulation:

  • Deferred taxes on your earnings until you take them out of the contract
  • Guaranteed minimum interest rate*

Risk Management:

  • Guaranteed lifetime income option provides an income stream as long as you live*
  • Some management of portfolio risk through diversification
  • Guaranteed death benefit*

*All guarantees are based solely on the claims-paying ability of the issuer.

Guarantees with the Fixed Annuity

  • Safety of Principal — Your premium and earnings are never at risk. Unlike traditional equity investments, your annuity account value can never be less than your principal investment.*

  • Interest Rates — You have initial guaranteed interest period choices of 1, 3, or 5 years.

  • Consistent Growth — Your interest rate cannot fall below a guaranteed minimum.

  • Lifetime Income Option* — When you choose the lifetime income option, you can rest assured that you will never outlive your income. An annuity can be an ideal way to augment Social Security and other savings to maintain an optimum financial lifestyle during retirement.

  • Death Benefit* — At the annuitant's death, the full account balance may be withdrawn without penalty or an early withdrawal charge.

*All guarantees are based solely on the claims-paying ability of the issuer.

Flexible Interest Rate Options

You can choose from three fixed annuity product types to match your specific retirement lifestyle needs.

Optional First-Year Rate Enhancement

The first-year interest rate enhancement, optional if available at contract issue with the Select Gold and Select Platinum, allows you to jump-start your savings. This option is subject to current availability. Please check with your financial representative. The interest rate paid during the first contract year will be higher than the interest rate paid for contracts without the first-year rate enhancement. If the option is elected, renewal interest rates will be less than renewal rates on contracts without the first-year rate enhancement.

Tax-Deferred Earnings Growth

This means you don't pay taxes on your earnings until you take them out. Your assets grow faster in a deferred annuity than in a taxable account, because earnings aren't taxed until they are withdrawn.

Earnings taken from an annuity may be subject to ordinary income tax and may be subject to a 10% IRS early withdrawal penalty if taken before age 59 ½. Earnings taken from other types of investments may be subject to either ordinary income tax or capital gains tax. This is offered as information only and not intended as tax or legal advice. Accumulated values do not reflect investment costs.

Portfolio Diversification

A fixed annuity is a safe and secure retirement savings vehicle to help manage risk in your overall financial portfolio. Investment professionals generally recommend that more of your portfolio be allocated to low-risk holdings like fixed annuities as you approach retirement age.

Withdrawal Charge Waivers

Contract withdrawal charges are waived on interest earned over the last 365 days since the last contract anniversary. If you need access to your money for a terminal illness or nursing home care, contract withdrawal charges may also be waived. Available as described in your contract and in states where allowed.

*All guarantees are based solely on the claims-paying ability of the issuer.

NMFN-SFA-001 (1012)

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