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I do not see how you can find a better product than a SPIA for this situation. That is probably why Mr. Cox did not post the info.
Annuity Case with Special Circumstances
- Thread starter gradyinsurance
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Well I assume he is touting an EIA with an attached income rider. A lot of agents are being seduced by these as substitutes for SPIA's. I do a lot of income planning using annuities and SPIA's play a vital role in that, true, not a lot of commish,but they are the right product for the customer in this conversation.
What are you talking about? If Carter wants us to use our secret decoder rings, then he needs to let us know. As far as an EIA/FIA being "the right product" yes we would need reasons.
first of all, let's say it's $45k to invest. The client wants $600 per month. If my math is correct (and it is), that would be $7200/year. Most EIAs require a 12-month hold on the funds before a 10% maximum annual withdrawal is allowed. So what am I missing?
first of all, let's say it's $45k to invest. The client wants $600 per month. If my math is correct (and it is), that would be $7200/year. Most EIAs require a 12-month hold on the funds before a 10% maximum annual withdrawal is allowed. So what am I missing?
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Some FIA's have the income rider which you can take a guaranteed percentage of income per year depending on their age when they start. It doesn't matter if you spend all the account value you still get that set percentage. Usually, you have to wait 1 year to take advantage of this rider. It is not a good fit for this situation though. The percentage is usually between 6-7%.
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