Annuity Payouts

Discussion in 'Annuities Forum' started by rmnj1968, Mar 4, 2015.

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  1. rmnj1968
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    rmnj1968 New Member

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    What is the payout on your favorite annuity?
     
  2. scagnt83
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    scagnt83 Well-Known Member

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    What type of annuity and what type of payout?
     
  3. rmnj1968
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    rmnj1968 New Member

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    Single premium deferred age 65
     
  4. Charpress
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    Charpress Well-Known Member

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    OK, my usual snide remark is deleted.
     
  5. scagnt83
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    scagnt83 Well-Known Member

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    Still not enough info...

    You are age 65? Or do you want income to start at age 65?

    Im guessing you are a consumer? Tell us where you are and what you want to achieve and you will get much more relevant answers.
     
  6. BoomBoom68
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    BoomBoom68 Active Member

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    Sorry ... NJ ... Lump sum ... Start taking income at 70
     
  7. scagnt83
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    scagnt83 Well-Known Member

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    I would recommend putting it in a 5 year FA or IA. Then look at a SPIA when you hit 70.

    We have historically low interest rates right now. It is extremely likely that you will create a higher income by waiting to lock in the payout rate.

    Midland has a 2.75% 5 year Fixed Annuity.
    Athene has a 5 year Index Annuity that has a 2.55% Spread with uncapped gains.

    In 5 years payout rates will likely be much higher. Wait until then to lock them in.
     
  8. Tahoe Ray
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    Tahoe Ray Well-Known Member

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    7 years ago I was selling variable annuities with living benefits...5% for life at 65 was the norm. Now we have FIAs at that level and higher...in a much lower rate environment.

    SPIAs will certainly look better, but I can't see the FIA GMWB bands being significantly higher in the future.

    (I can still appreciate and utilize your strategy though...)
     
  9. scagnt83
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    scagnt83 Well-Known Member

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    I dont think you can compare a VA payout to an IA. Different reserve requirements, etc.

    Also, with an IA, 9 times out of 10 the GMWB Value will be higher than the Account Value. Thats not true for VAs. So I would think more VAs w/ Rider walk at the end of surrender vs. IAs w/ rider. I would be very surprised if the actuarial values are the same on the two. Look at today's rates, IAs are above VAs. So I dont think that is an apples to apples comparison... but I could certainly be wrong...


    But look at IA Payout & RollUp Rates just 3 or 4 years ago...
    Payouts were a good 1% higher or more. Rollups were higher/longer too. And the reductions happened while rates were dropping. So I cant imagine them not going back up as rates rise.... unless the market as a whole overextended themselves actuarialy...
     
  10. BoomBoom68
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    BoomBoom68 Active Member

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    Ok ... Let me re-phrase ... Sorry guys ... I'm new to the annuity market so bear with me ... I was talking about what you/we get paid ... I have s friend of a friend of a friend who says he gets paid 9% on a Midland annuity ... My IMO has me at a 4.5% payout ... I guess my question is ... Is getting paid 9% on an annuity really out there?
     
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