Annuity Question

[magagent]

I recieved a voicemail from a client of mine this week here is the sitatuion. He is a 32 year old male computer programmer that makes about 90K a year no benefits are offered at his workplace not life, health, retirement nothing.. His wife is a part time speech language pathologist so she is not elgible for benefits either. He has absolutely nothing in retirement, he asked me what do I think about putting all of their retirement dollars in an annuity?

I am not an annuity expert so I thought I would get some help..

 

[Norwayguy]

I recieved a voicemail from a client of mine this week here is the sitatuion. He is a 32 year old male computer programmer that makes about 90K a year no benefits are offered at his workplace not life, health, retirement nothing.. His wife is a part time speech language pathologist so she is not elgible for benefits either. He has absolutely nothing in retirement, he asked me what do I think about putting all of their retirement dollars in an annuity?

I am not an annuity expert so I thought I would get some help..

First what retirement dollars your posts says they have nothing saved at this point...Are we talking qualified funds or just an account they want to set aside at the bank that is Non-Qual...

Even if they get nothing offered at work they can each open up and IRA or Roth IRA, those can be funded by an annuity. There shouldn't be much of a problem either way. Second question would be what their risk tolerance was personally unless they are really risk adverse I would be talking to them about a diversified portfolio...

 

[VolAgent]

If he is ok with some market risk, you might want to max out their IRAs or Roth IRAs and put that money in mutual funds. Then use an non-qualified annuity to accumulate even more retirement dollars.

Depending on their health and how much life insurance they already have, a whole life, IUL, or VUL might be appropriate to hold some of those retirement dollars as well.

 

[HarryRenard]

Is he an employee or does he work for himself as a sub.
How is he paid?

 

[BNTRS]

My question to him (and not to be political and answer questions with questions, but this teases a question in response): what makes him ask that question?

All of his money? Probably not. A lot of very fascinating things can be done with annuities, and even though fixed annuities are often looked at as low risk, that low risk return can be something to depend on when other investment choices require time (or recovery time).

Was there a particular annuity product that he asked about?

 

[nembra]

My 2 cents are that I really don't think putting all investments into one basket is such a great idea. What he should ideally do is to spread it around which will decrease his element of risk.

 

[magagent]

My thoughts exactly but that is not a concern of theirs.

My 2 cents are that I really don't think putting all investments into one basket is such a great idea. What he should ideally do is to spread it around which will decrease his element of risk.

 

[ChristianFSFP]

I beleive a short term fixed product would be a great place to start, giving the market a bit of time to correct itself.

But then again, people are still making money in the market.

 

[pmgannuities]

Don’t forget about suitability!

 

[batistasmith]

On the advice of my financial planner, I moved my fixed annuity to a variable annuity and now my value is down