Annuity options for 65 yr old

[scagnt83]

Caveat, not an agent.

That approaches a question I had recently. Can one use a combination of 401k and after tax savings to purchase one annuity? ie neither 401k or after tax savings alone would meet a minimum annuity purchase requirement so one would either have to find another annuity source or be able to combine fund sources.

Not to my knowledge. There are lots of annuities with pretty dang low minimums. What amounts are we talking about here? What are you looking to achieve? PM me if you want.

 

[scagnt83]

... quote NWL but they have to know what they're getting themself into.

A massive clusterf*ck if they ever want their money back. Thats what they are getting themselves into!!!!!

 

[Tahoe Ray]

Caveat, not an agent.

That approaches a question I had recently. Can one use a combination of 401k and after tax savings to purchase one annuity? ie neither 401k or after tax savings alone would meet a minimum annuity purchase requirement so one would either have to find another annuity source or be able to combine fund sources.

No. You can't combine qualified and non-qual money. You may be able to get an exception at the carrier level if you're writing both w/ the same company but frankly, it's not productive from an agent perspective.

Annuities have a ton of liability to the agent so things like minimum contract premium cases and annual pay "savings" cases are rarely worth dealing with.

 

[LostDollar]

Not to my knowledge. There are lots of annuities with pretty dang low minimums. What amounts are we talking about here? What are you looking to achieve? PM me if you want.

No. You can't combine qualified and non-qual money. You may be able to get an exception at the carrier level if you're writing both w/ the same company but frankly, it's not productive from an agent perspective.

Annuities have a ton of liability to the agent so things like minimum contract premium cases and annual pay "savings" cases are rarely worth dealing with.

Thank you to both of you.

Here's sorta how that came about. I am working with an agent to buy an Oxford life policy. Tahoe Ray commented in another thread about Oxford Life annuity rates. So that started me thinking, maybe I should look at an Oxford annuity too.

But, I know almost nothing about annuities. So first question, what's he talking about about rates? So I found an Oxford rate page that listed several different annuities with an (to me) overwhelming and incomprehensible amount of financial details about the annuities.

So I looked some more. I then found a Charles Schwab page. That interested me for two reasons. One is that a couple of years ago, at the recommendation of a forum member I opened small traditional and roth ira accounts at schwab. I have been into that account three times and each time I have found it extremely difficult for me to understand, navigate and use. I was thinking that this tax season when I got into the accounts, I might just close them and put the money at TIAA to simplify my life.

So enter the schwab page I found. It was an annuity calculator. That was for the output end of the annuity. I played with that a little bit and saw what kind of annuity option interested me. So then the question is, should I reconsider on closing Schwab accounts because I might like an annuity there? And the calculator said you had to have $100K minimum to do annuities with Schwab. Even if the stock market goes up some more, there is only one way that $100K is remotely possible for me. So, you answered my question, and I now know that maybe wanting an annuity at some point in the future is an irrelevant consideration to whether or not to keep Schwab IRA's open.

As far as smaller annuities are concerned, I am in talking with my life agent about an Oxford annuity. My candidate at the moment is the royal select at $10-12K. I don't know how current these are on dates, but I have found and downloaded Oxford brochures on the Royal Select plan and on general guidelines on buying an annuity. I hope to read through those this week. I guess my general objectives for this purchase would be to *) round up some loose cash **) get a little more return on it than bank and S&L rates ***) automate the cash management and distribution process for the money. (and to be able to say I own an annuity.)

 

[scagnt83]

Thank you to both of you.

Here's sorta how that came about. I am working with an agent to buy an Oxford life policy. Tahoe Ray commented in another thread about Oxford Life annuity rates. So that started me thinking, maybe I should look at an Oxford annuity too.

But, I know almost nothing about annuities. So first question, what's he talking about about rates? So I found an Oxford rate page that listed several different annuities with an (to me) overwhelming and incomprehensible amount of financial details about the annuities.

So I looked some more. I then found a Charles Schwab page. That interested me for two reasons. One is that a couple of years ago, at the recommendation of a forum member I opened small traditional and roth ira accounts at schwab. I have been into that account three times and each time I have found it extremely difficult for me to understand, navigate and use. I was thinking that this tax season when I got into the accounts, I might just close them and put the money at TIAA to simplify my life.

So enter the schwab page I found. It was an annuity calculator. That was for the output end of the annuity. I played with that a little bit and saw what kind of annuity option interested me. So then the question is, should I reconsider on closing Schwab accounts because I might like an annuity there? And the calculator said you had to have $100K minimum to do annuities with Schwab. Even if the stock market goes up some more, there is only one way that $100K is remotely possible for me. So, you answered my question, and I now know that maybe wanting an annuity at some point in the future is an irrelevant consideration to whether or not to keep Schwab IRA's open.

As far as smaller annuities are concerned, I am in talking with my life agent about an Oxford annuity. My candidate at the moment is the royal select at $10-12K. I don't know how current these are on dates, but I have found and downloaded Oxford brochures on the Royal Select plan and on general guidelines on buying an annuity. I hope to read through those this week. I guess my general objectives for this purchase would be to *) round up some loose cash **) get a little more return on it than bank and S&L rates ***) automate the cash management and distribution process for the money. (and to be able to say I own an annuity.)

I would not recommend a schwab annuity. Its being underwritten by an insurer, and schwab is just putting their brand on it and taking an extra cut from the pot. Plus the $100k minimum is ridiculous and not the norm at all.

Most competitive annuities from A rated carriers allow minimum deposits in the $10k - $20k range.

Oxford is not a bad carrier. A- rated. But their payouts for income are not the highest.

Find an actual annuity agent who will shop the market for you if you are serious. At $10k that might be hard though, your only talking $500 in comp max. Personally, I dont do annuities under $20k because its just not worth my time or the liability. Even at $20k I am selective about it.

Are you looking for immediate income? Or income at a later date? If later, how many years out? How old are you? Ray and I can direct you to the most competitive products with that info.

Oxford does not have a spia for immediate income. So you are either looking at a fixed annuity or an indexed annuity.

I would not recommend a fixed annuity if income is your goal.

Indexed annuities have guaranteed income riders that can create substantial income in comparison to a fixed annuity or other investment options.

It sounds like you have a life agent who is contracted with oxford and "can" sell this annuity to you. That is not a recipe for success. Annuities lock you in for years. Make sure you have the most competitive.

 

[bps]

Thanks all for the input!