243,000 Annuity term expiring. Need advice

[25MercuryHP]

I have a 61 year old client that put 200,000 into an annuity. The company quit selling annuities aft it was purchased. Soon the 5 year term will mature and hes considering options.

243, 000 (200k principle)

Options

1. Annuity payout
1219.00 monthly on Life +10
750.00 free from taxation

2. 3% interest taken each month 600.00 taxable payment but keep principle in tact.

3. Roll over to a SPIA not attractive bc payments are less than 1219.00 (1,175.00)

4. Roll over into another MYGA but he needs monthly income and needs liquidity.

Any suggestions? Unless the SPIA payments increase it seems like annuitizing @ 1219 for life is best option.

Thanks!

 

[Tahoe Ray]

I have a 61 year old client that put 200,000 into an annuity. The company quit selling annuities aft it was purchased. Soon the 5 year term will mature and hes considering options.

243, 000 (200k principle)

Options

1. Annuity payout
1219.00 monthly on Life +10
750.00 free from taxation

2. 3% interest taken each month 600.00 taxable payment but keep principle in tact.

3. Roll over to a SPIA not attractive bc payments are less than 1219.00 (1,175.00)

4. Roll over into another MYGA but he needs monthly income and needs liquidity.

Any suggestions? Unless the SPIA payments increase it seems like annuitizing @ 1219 for life is best option.

Thanks!

Out of curiosity, why would you do life +10? No beneficiaries? Life only. Beneficiaries? Life w/ installment refund or cash refund. Spouse? Joint income.

If he's in a low tax bracket, you could get similar income from AIG's Assured Edge w/o annuitizing at all but still getting lifetime income (although taxable to basis).

Lots of options...