Advice from Annuity Experts

[insuranceexec]

lol at trying to tell a parent about their finances and getting them to listen. I wouldn't even try.

Best thing you can do is screen the agent, and be there to run interference if necessary.

on a side note: if you want advice, feel free to pm. It would be good for you to know which products are competitive, and whether the agent is shaving a point of interest for an extra 1/2% commission.

Pad, are you trying to point out my grammatical mistake of not placing a semi-colon?

Great advice just the same.............LOL

 

[Franz Kafka]

What kind of expertise do you need to be able to write a MYGA or CYA for you dad so he can live off the interest (?) Why would you want to line some stranger's pocket with fat commission off your dad's business (?) I must be crooked to think the money should be kept in the family (?)

 

[0b1kanobee]

If you put $50,000 into a 5 year cd and take it out in 6 months how much money do you have. That is a silly comparison someone made above.

An annuity is contract for a period of time. If you take the amount out before then you are going to be penalized. Some have more moving parts than others and different crediting methods so with some even if you took the money out you won't be upside down.

I know AIG has an annuity that pays the client 5% the first year and 3% I think the second and it becomes completely liquid year two but I wouldn't put anybody's money in that company. They have changed their name so many times and good luck getting your money out when your ready.

 

[InsureGuy5]

You really just must understand how annuities are insured and regulated - especially the reserve requirements. The only people badmouthing annuity accounts are the ones trying to sell something else.

Usually when seniors have a better understanding of how annuities work, then they are more willing to listen. Heck, most of the principal is backed by govt treasuries. The govt would have to fail for annuity companies to go bankrupt - which is precisely why annuity accounts survived the Great Depression.

 

[Crabcake Johnny]

Well, I think he's basically screwed - looking for capital preservation, safety and around a 5% return. Good luck. Pension and social security pays all the bills - interest off his savings gives him him lifestyle he enjoys. However, at 78 he's worried about liquidity in case of a severe health issue.

I told him that for a worst case scenario he could do a reverse mortgage. My father-in-law just completed his reverse mortgage around 6 months ago and is in hog heaven.

 

[R. Paul Aguirre]

Well, I think he's basically screwed - looking for capital preservation, safety and around a 5% return. Good luck. Pension and social security pays all the bills - interest off his savings gives him him lifestyle he enjoys. However, at 78 he's worried about liquidity in case of a severe health issue.

I told him that for a worst case scenario he could do a reverse mortgage. My father-in-law just completed his reverse mortgage around 6 months ago and is in hog heaven.

So he's skeptical about annuities but not reverse mortgages? Haha

You should contact a company that you believe in, one that is financially strong and speak with one of their professionals that has been doing this for many years(you know the types that put on the seminars for their carriers), in most cases if they are in your area they will come out and talk with your father and can help put a plan together, and guess what? All the commission goes to you.



ps I am definitely not an annuities expert.

 

[Crabcake Johnny]

No, I told him in a worst case scenario he could do a reverse mortgage - he personally thinks they're scams....as he thinks basically everything is a scam.

 

[insuranceexec]

Well, I think he's basically screwed - looking for capital preservation, safety and around a 5% return. Good luck. Pension and social security pays all the bills - interest off his savings gives him him lifestyle he enjoys. However, at 78 he's worried about liquidity in case of a severe health issue.

I told him that for a worst case scenario he could do a reverse mortgage. My father-in-law just completed his reverse mortgage around 6 months ago and is in hog heaven.

Many of the new annuities have accelerated riders on them giving the client access to the money in case of an emergency; such as:

Nursing home rider- Some companies will give you more access to your money, and some will let you have complete access without penalty; once you have been confined to a skilled nursing facility for a set period of time.

Confinement waiver- I have seen contracts with as little as 30 days to as high as 180 days of confinement, that would give the client access to more if not all of their money. Providing that they are either confined to their home or in the hospital.

Terminal Illness rider- If the client is going to die with in a set period of time, then the clients has access to some if not all their account value; should the client be deemed terminally ill.

Please remember that for most of these riders the annuity must be in place for a period of no less than 1 year before the riders become active.

I hope this helps.......

 

[padthaiforlunch]

Some MYGA also have ROP built in, so worst case he gets his principal back.

A split annuity might work well. Shop for a good SPIA and use an MYGA with ROP for the other side.

 

[Tomfromtheshade]

People at 78 are either

A) happy to be alive, living life to the fullest, and understanding that they can't take it with them

or

B) living life in a shell worried that everyone and their brother is out to get them and their last penny.

I think that your client is the latter. Its hard to work with those kind of people.