32yr Old $300K SPIA --Carriers?

[scagnt83]

Really? Pru has such crappy sub accounts though. The VA is essentially the HD Rider and that's it. JNL has been regarded for years by Morningstar for having great sub accounts, and IMO they truly do. Not to mention the fact that you can use their rider with any asset allocation you want.

I had a stat once about VA sub accounts' hitting their benchmark averages, Pru was one of the worst.

I do like the Lincoln suggestion since this is non-q money. I admittedly am not as well versed on that product as I should, but I rarely do non-q annuity business, especially on the variable side.

Yeah, but that HD rider is strong.

I like JNL on the distribution side because their riders are stronger. Also, they do not reallocate automatically when you switch on distribution like Pru does.

Dont get me wrong, imo JNL has a strong product no matter what the situation might be.

But with the highest daily, the sub accounts dont necessarily have to be stellar, they just have to have similar rises to the overall market to lock in that highest day.... jmo

But your right, JNL has better sub accounts.

 

[BNTRS]

I guess I'm just too old fashion. My take is that the riders are plan B. We put money in the VA because we want to be--in part--in the something with some degree of increased risk.

There are a lot of people out there pimping VA based solely on the riders (I know some in particular at Pru). They do have a good thing going with the marketing of their products. They have two wholesaling forces, one for career agents and one for brokerage (they love to spend ridiculous amount of money on these sorts of things). I knew the guy who was for the career agents in the North Eastern region, makes a lot of money.

I had a Guardian wholesaler talk to me once who was in agreement with my take about plan B. Then when I asked him why I only had three investment choices if I chose their GMWB rider, he didn't have much of an answer.

I used to like Pac Life because they had the V.I. Fund for Blackrock's Global All and I could use it with the GMWB, but now they've gone completely to crap by pricing that rider insanely high.

 

[Larry Tew]

I like the income riders for all the obvious reasons, and yet... I don't feel like a pimp!

 

[ScottLFB]

SCAGNT83.. I thank you for the advice.. I'm a wholesaler on the Annuities side and the agent came to me about the SPIAs.. I have since told him your thoughts and that he needs to team up with a Financial Advisor. Let the income portion of her investments come from the market that they can be conservative with it and make it last (worst case scenario) until age 60. Told him to take a smaller portion and put in an FIA to give her the income from age 60 until death. That way he's still involved with her decision, but he's not eliminating future use of over half of her money by putting it all in SPIAs.. Just for the record, I didn't like the idea either with someone only 32, but that's what the agent was looking at.

**Another thought was to have her invest in Mexican drug mules to run across the border, but we didn't know how to classify the investment. Would it be considered moderate risk alternative investing? lol

 

[VolAgent]

**Another thought was to have her invest in Mexican drug mules to run across the border, but we didn't know how to classify the investment. Would it be considered moderate risk alternative investing? lol

Depends on how well she diversifies her investment. Definitely high reward, and certainly high risk on each mule. But if she invests with several cartels spread along the border, the risk should spread out nicely. Just have to make sure the cartel pays up, that might be the hardest part.

 

[TheKoenigGroup]

I definitely do not like a SPIA for this person. I believe a variable annuity with an income / withdrawal rider is the best option. Another thing... with safe money rates these days, a 5% return isn't realistic today.

I agree, what about an equity indexed annuity? ING has some good ones out right now, with some good features...

 

[budfox7]

She is too young for a SPIA. And with rates as they are right now, its certainly is not an optimal time to enter one if it even was appropriate.... and if it is, then she has plenty of time to wait to see if rates go up...

She needs lots of diversification and options for an income stream.

I would look at a VA to help save for retirement. (try Pru with the HD rider, or LFG with the I for life rider)

Consider some dividend yielding stocks to help with the current income along with some muni bond funds (tax free ones preferably), and some traditional bond funds with good track records (such as pimco or blackrock). I would look at putting a good bit into this bucket.

Then she probably needs a diversified basket of stocks to go along with it all.

With that amount of money you could possibly even look at funding a WL or UL policy to help with retirement as well.

Then probably put a smaller amount in a money market account and one or two checking accounts for her to live off of; dividends and taken gains can flow into the mm and checking accounts.

At her age, considering inflation and unknown future life events; her need for income is more complicated than just a SPIA most likely.

Great portfolio diversifcation, my man

 

[ChristianFSFP]

Why don't you just put it in a 14-15 year product that offers a high bonus and take advantage of 10% freeouts? Seems a whole lot less complicated as well.......

 

[HarryRenard]

Why don't you just put it in a 14-15 year product that offers a high bonus and take advantage of 10% freeouts? Seems a whole lot less complicated as well.......

Don't think that might be a problem for a 32 yr old, hence the title "32 yr old$300k spia" ?