65 Year Old Lady is Getting $540,000 Lump Sum Instead of Pension

[BNTRS]

Might do better spending down a fixed annuity.

I just ran a 10 year certain SPIA to get 12,000 per year it took 115k.

By spending down a fixed annuity after 10 years I got 8k and change left over so I beat the SPIA by 3k and my client is still in charge of her money where in the SPIA there is no flexibility at all.

Something to consider if there are other buckets of money. It works for the case I'm working on now. Your millage may vary.

Thank you!

I've been saying this for years. Everyone has a strange fascination with SPIA's for the guaranteed part, but they pretend like plain vanilla fixed annuities can't the same or better through withdrawals because there's no magical annuitization. Annuitization does not create money out of thin air, it's not even that special. And yes, SPIA rates suck right now.

And I could completely crush both products with something else, that's also guaranteed, and no it's not life insurance.

 

[damarcuswilson]

Thank you!

I've been saying this for years. Everyone has a strange fascination with SPIA's for the guaranteed part, but they pretend like plain vanilla fixed annuities can't the same or better through withdrawals because there's no magical annuitization. Annuitization does not create money out of thin air, it's not even that special. And yes, SPIA rates suck right now.

And I could completely crush both products with something else, that's also guaranteed, and no it's not life insurance.

What would you suggest?

 

[njh_lfg]

take that bait...................

 

[tins]

take that bait...................

HAHahaha....right into the trap!

 

[annuityseller]

Ok BTNRS i'LL BITE WHAT'S THE PRODUCT YOU'D USE??

 

[Crabcake Johnny]

Posts like this scare the cr*p out of me. I can't imagine hiring a stock broker, giving him $500,000 then stumbling across his post on a message board:

"So I got his guy - gives me $500,000 to invest. Does anyone have the faintest clue as to where I should put his money? Thanx."

 

[0b1kanobee]

Ok BTNRS i'LL BITE WHAT'S THE PRODUCT YOU'D USE??

Structured Settlements..........800-CASH-NOW

I looked into them but after seeing how awkward they can be to work with, I've never found a place for them. Trying to find one that works or is an exact fit when you are designing a case would be like going to Ross or TJ Max looking for an exact pair of tennis shoes or outfit that you saw in a major department store with the exact size ect. ect. You might find something like it but exactly what you want is next to impossible.

Then if you did find it, you would have to petition the store manager to let you buy it, put a deposit down and hope that the general manager approves it. Once he approves it the regional manager would have to approve it. Once the regional manager approves it then the national manager would have to approve it. Once that happens the President of the company would have to approve it. Then it would go to the board of directors and they would have to sign off on it. Now if any of these people drop the ball along the way, you just might get pissed and go buy the damm dress or shoes (whatever) from the department store where you know they have it in stock and ready to buy.
That was my experience anyway and the best analogy I could come up with.

With that said, I might have a client who this might work for. However if it is with that same group I talked to last time I wouldn't be interested. They wanted you to put the majority of your regular contracts with them and you had to listen to the "we reserve these for our top producers" sales pitch yada yada yada yada.