Pick the State Farm Interest Advantage Program
Here's a relatively simple idea. Take the fixed-rate earnings from your Future Income Flex variable annuity1 from State Farm Life Insurance Company or State Farm Life and Accident Assurance Company (Residents of NY and WI only) and shift them into professionally managed investment accounts that offer the potential for a higher return.
How? With a controlled, systematic approach that gradually shifts these assets into the subaccount of your choice - giving you simple, convenient access to the investment potential of the stock and bond markets.
It's called the Interest Advantage Program, and it makes the complex process of reallocating your assets and managing your investments far easier and more convenient ...because it's automatic.
We call it the "Interest Advantage" program for good reason
While you may not want to take big risks with your assets, choosing only low-return investments carries the risk that the value of your assets may not keep up with inflation. Without enough savings growth, you could fall short of realizing your future dreams.
The Interest Advantage Program enables you to explore opportunities in the stock and bond markets, without committing a large portion of your retirement savings all at once:
- The principal in your Fixed Account remains protected from market fluctuations (based on the claims-paying ability of the issuing State Farm life insurance company
- An amount equal to your Fixed Account earnings is shifted gradually into underlying stock and bond investments each quarter. These periodic investments have the effect of "dollar-cost averaging" — a strategy that helps reduce the risk of making investments only when unit prices are high.
- You can choose from a variety of underlying subaccounts for your new investments.
- Professional investment management of subaccounts saves you time and effort.
How does it work?
The Interest Advantage Program is based on a simple idea. The interest earnings from your State Farm Future Income Flex variable annuity's Fixed Account are transferred quarterly into the professionally managed investment accounts (known as subaccounts) of your choice. The amount of each quarterly transfer is equal to the interest earned on your Fixed Account balance during the previous quarter. No fixed Account Principal is put at market risk, as only the amount of earned interest is moved into your subaccounts.
Is it right for you?
The Interest Advantage Program could be suitable for a wide range of individuals:
- Conservative investors who are cautious about broadening their investment mix
- Individuals who recognize there is no "perfect" time to make new investments
- Investors who seek greater diversification for their retirement savings
- Those who simply wish to explore new avenues for long-term growth potential
How to get started
To begin the Interest Advantage Program, you must have the minimum required balance of $2,500 in your Fixed Account. If this balance should fall below $500 by the end of any policy quarter, the transfer will not occur. Please see the prospectus for further details.
Find out if the Interest Advantage Program could work to your advantage.
Resources
Detailed information
Disclosure
1Please note, effective September 27, 2008, State Farm discontinued offering Variable Products. The State Farm Variable Operation Center continues to service all existing Variable Deferred Annuity policies. This includes additional contributions* and transfer/rollovers up to $30,000 annually.
*Tax Qualified plans—Under age 50 – $7,000, Age 50 and over – $8,000. Non Tax Qualified plans – $30,000 per policy year. No contributions are allowed on Tax Sheltered Annuity/403b plans; current SEP plan contributions are lesser than 25% or limited to $69,000.
Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact State Farm VP Management Corp (888-702-2307) for a prospectus or summary prospectus containing this and other information. Read it carefully.
Variable annuities have fees and charges that include mortality and expense, administrative fees, fund expenses and may include surrender charge, transfer processing fee and additional deposit rider charge.
Variable annuities are long-term investments designed for retirement purposes.
The Interest Advantage Program, dollar cost averaging, and diversification do not assure a profit or protect against loss.
Neither State Farm® nor its agents provide tax or legal advice.
State Farm VP Management Corp. is a separate entity from those State Farm® and/or unaffiliated entities which provide banking and insurance products.
Variable Deferred Life Annuity Policy series 97040, 97090, A97040, and A97090.
Securities, insurance and annuity products are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal.
Securities distributed by State Farm® VP Management Corp.
Each State Farm insurer has sole financial responsibility for its own products.
State Farm Life Insurance Company (Not licensed in MA, NY or WI)
State Farm Life and Accident Assurance Company (Licensed in NY and WI)
Bloomington, IL
IL-210.2
AP2023/09/0977