Annuities that Are Most Liquid

[Stephen]

I appreciate the discussions back and forth but some are off topic. I'm not interested in whether or not someone has been duped into an annuity. (We all know this can happen)
I'm just looking for ways to present possible solutions to this clients' risk: risk of long term care event and the risk of earning next to nothing at bank.
The trade off is liquidity for ignoring these risks.

Have you had the LTC discussion with farmer John? If so, how did it go?

 

[jmhalvo]

I appreciate the discussions back and forth but some are off topic. I'm not interested in whether or not someone has been duped into an annuity. (We all know this can happen) I'm just looking for ways to present possible solutions to this clients' risk: risk of long term care event and the risk of earning next to nothing at bank. The trade off is liquidity for ignoring these risks.

right. What IS stupid is the argument of ETFs vs annuities. They are BOTH great options, but are apples and oranges for two very diff clients. I have many of both. If Drifting thinks ETFs are the best thing for everyone great. No need to argue against annuities, which are a perfect solution for some. It's an old and very boring argument and stupid

 

[Stephen]

What I didn't pick up until half way through the thread is that Drift isn't an agent or advisor, so he is coming from a different vantage point than the rest of us. More of an opinionated neighbor, if you will.

 

[jmarkk1]

Have you had the LTC discussion with farmer John? If so, how did it go?

I do medicare for this client and his wife. They both have med supps.
Our appointments have been devoted to these issues, and it's been difficult to bring up because we've already exhausted our main reason for meeting.
We've talked about LTC and he personally knows someone that has gone through their entire nest egg due to nursing home costs. He wants to talk about it next time we meet.

 

[Stephen]

Lincoln's ltc fixed annuity could turn $50k into $150k of ltc benefits, get a better return than what he is getting at the bank, and leave $450 liquid for a new tractor.

Show him that and a traditional ltc policy and see which one he likes.

 

[gordon112]

^^Precisely. I would mention to him on income now that would triple or double if he or his wife went into the nursing home. Several products would fit the bill and consider writing the wife a separate nursing home policy if she is healthy enough to qualify for. The wife is the one that has a higher chance of being in a nursing home for a longer period of time.

You can also write two separate annuities so that you are covering both with the possibility of a LTC policy on the wife. Don't leave the wife out of it if nursing home is a concern.

 

[Drifting]

First your using your risk tolerance in place of this farmers. Neither one of us have met him but I would bet a 67 year old farmer has heard of the market, probably has some experience in the commodity market. I have dealt real world with these people one of the first words out of most of their mouths was I don't want to lose money or does this involve the market? Historical returns are all well and good but there is a reality that many investors personal returns never come close to getting the returns touted because not everyone can stomach buy and hold when its their money losing value and would be more likely to sell instead of buying at market lows.

Reality is neither one of us is ever going to actually speak with this farmer.

Again, it's called diversification into bonds. Most people are ignorant of diversification into bonds. That's why you show this 67 year old a chart of diversified returns and let HIM decide.

What I didn't pick up until half way through the thread is that Drift isn't an agent or advisor, so he is coming from a different vantage point than the rest of us. More of an opinionated neighbor, if you will.

And I'm beginning to think that everyone in here is an insurance agent (biased in favor of annuities). I'm not selling anything. I've always read that ETF's pay no commissions which would explain the hostile reaction from some.

 

[Josh Landis]

I have a client that's a farmer. (67 years old) His wife has FA that is now paying income. (Nothing really great)
Anyways...He never went with annuity because he fears money would be inaccessible if equipment breaks etc. All of his money is in bank. (Around $500k)
Have any of you ever been able to help someone that needs liquidity plus better growth than just sitting in bank?
What approach do I use to open discussion? What products?
He's in Ohio.

Jmarkk1,

Is the money Qualified or non-qualified? If it is non-qualified, I would look at an IUL like WMB and throw the money in there. The returns are great, you get a tax-free DB and LTC, and you have return of premium feature. Great product for someone who wants growth.

If the money is qualified, I would look at something like the National Western IUL or some sort of annuity with a return of premium like Great American. Just remember on annuities with return of premium you're giving up a lot on the caps to get that feature, but you should still outperform any bank CD.

Josh

 

[Stephen]

. And I'm beginning to think that everyone in here is an insurance agent (biased in favor of annuities). I'm not selling anything. I've always read that ETF's pay no commissions which would explain the hostile reaction from some.

I am an insurance agent and financial advisor, and I would much rather have assets under management than a one off commission, so I have disagree with that statement.

You are a do it yourself type and that is fine. We here at the forum are here to give advice anytime, free of charge, should you have 72t issues or need someone to explain to you how your VA works.

 

[scagnt83]

Again, it's called diversification into bonds. Most people are ignorant of diversification into bonds. That's why you show this 67 year old a chart of diversified returns and let HIM decide.

And I'm beginning to think that everyone in here is an insurance agent (biased in favor of annuities). I'm not selling anything. I've always read that ETF's pay no commissions which would explain the hostile reaction from some.

Many people who have responded to your posts are CFPs which means they are fee based financial planners... one of the highest, toughest, & comprehensive financial designations an advisor can have.

One or two are CFPs as well as Series 7 licensed which means they are licensed advisors who are educated about and sell the very Bonds you claim they are ignorant about. Anyone who has taken the Series 7 is well educated on the many risks that Bonds carry (including Bond Funds). (im excluding Gov bonds in that statement since they are the benchmark for risk free)


ETFs pay comp like stocks do, but not like mutual funds do. Basically they pay based on the trade fee. All securities pay comp to some entity, even no-load funds.

But many advisors who sell ETFs do so in a wrap account and charge a 1% fee against the entire account as a whole. They often will waive trade fees (or their share of them) if they do this.


You seem to like ETFs because they are low fee. And I understand your thinking. But ETFs have risks that normal Index Fund investing (or MFs) do not carry. Advising someone to have just ETFs as their market investments is a risky recommendation.

As I have said before, you do not know what you do not know. And the website you seem to be getting all your info from (or at least you have referenced info from it multiple times now on the forum) is riddled with factual inaccuracies...