35 Yr Old Looking at an Annuity

[SecureHealth1]

Hey Guys, I have a 35yr old client with around $25,000 to $30,000 looking for a retirement vehicle. Its been a while since I did anything with annuities, i mainly do life and health. I just need to steer this guy in the right direction..

I remember several years ago companies would give the client a 5%-10% bonus for the amount they put in, I realize this was before the financial meltdown so not sure if their are companies this guy could look at that would give him a bonus? Since he is younger, he doesn't mind doing a long term annuity, he is currently just thinking of a CD with his local bank and if my memory serves me right, that's not the best route to take..


Any suggestions?

Thanks!

 

[scagnt83]

Midland has Annual Caps at 7% (Euro50) & 6.75% (S&P) right now on their Select Series 14 year 5% free withdrawal product.

NWL has a 95% uncapped PR with a 0.35% spread (monthly average S&P 500) (Ultra Value Product)
They also have 75% PR with a 0.25% spread (S&P monthly avg) & 50% PR w/ 0.25% spread (Global Lookback Strategy - 4 Indexes, 40%/30%/20%/10% allocated from best to worst performer)

ANICO has an uncapped monthly average on S&P 500, with 100% PR. Its the value lock; but it is on a rolling 10 year term. No annual lockins. You can choose to lockin the gain once during the contract term.

Id probably point him to NWL or Midland.

Bonus products have lower caps. Since he has a long term time frame, the higher caps will be a better deal for him imo.

 

[Larry Tew]

It sounds like this is a lump sum of non-qualified money. I could make a case for a near-MEC permanent life contract instead of the annuity.

 

[SanDiego619]

IUL policy with that amount of time on their horizon

 

[moonlightandmargaritas]

Hey Guys, I have a 35yr old client with around $25,000 to $30,000 looking for a retirement vehicle.

If there's no need for insurance, a good index mutual fund from someone like Vanguard is the best bet.

 

[John Galt]

If there's no need for insurance, a good index mutual fund from someone like Vanguard is the best bet.

Im not sure about that moon, I mean you really dont know what you are talking about.

 

[moonlightandmargaritas]

Im not sure about that moon, I mean you really dont know what you are talking about.

Let's see...the Vanguard S&P 500 Index Fund is up an average (annually) of 11.02% since 1976. What are you recommending to your trailer park clientele?

 

[jmhalvo]

If there's no need for insurance, a good index mutual fund from someone like Vanguard is the best bet.

uh sure of course anyone can do that at anytime. You do realize this is on an annuity thread? How is that helpful?

 

[tins]

Im not sure about that moon, I mean you really dont know what you are talking about.

Gotta agree. I'd go with real estate...more risk, more reward!

 

[DWPCL]

Midland has Annual Caps at 7% (Euro50) & 6.75% (S&P) right now on their Select Series 14 year 5% free withdrawal product.

NWL has a 95% uncapped PR with a 0.35% spread (monthly average S&P 500) (Ultra Value Product)
They also have 75% PR with a 0.25% spread (S&P monthly avg) & 50% PR w/ 0.25% spread (Global Lookback Strategy - 4 Indexes, 40%/30%/20%/10% allocated from best to worst performer)

ANICO has an uncapped monthly average on S&P 500, with 100% PR. Its the value lock; but it is on a rolling 10 year term. No annual lockins. You can choose to lockin the gain once during the contract term.

Id probably point him to NWL or Midland.

Bonus products have lower caps. Since he has a long term time frame, the higher caps will be a better deal for him imo.

I really like the midland product. How do you feel about using the capstone product for people that want to continue to fund the annuity? Do the lower caps even out with the bonus?