Any Ideas For Annuities ?

[supersupps]

I;ve got a 68 yr old female turning 69 in Feb. in perfect health.. She has some cd's that are maturing and she's considering another vehicle.. She'd like to have an income in 5 yrs of $1,000per month and beneficiary would be her kids. Any ideas where she can get this without giving up 125k upfront? She is in such good health, that a ltc would not interest her. any ideas and prices?

 

[Norwayguy]

Re: Any Ideas?

I;ve got a 68 yr old female turning 69 in Feb. in perfect health.. She has some cd's that are maturing and she's considering another vehicle.. She'd like to have an income in 5 yrs of $1,000per month and beneficiary would be her kids. Any ideas where she can get this without giving up 125k upfront? She is in such good health, that a ltc would not interest her. any ideas and prices?

Simple answer No...An Income rider on an annuity would accomplish what she wants based on 125K invested 5 years of accumulation and distributions starting at age 74....Might be able to toss this in a high current yield annuity and then annuitize in 5 years. But there really is no way that she can create 12K per year in income without devoing that base capital to it now....

The big question is what is her hang up, is it about tieing up the money or and don't take this wrong is her concern you? If she is asking you to create 12K per year of income in 5 years I would show her exactly how you would create that income guaranteed by the carrier and exactly how much would be created with 125K and how you might be able to cut down the initial capital to arrive at exactly 1K per month in 60 months, I don't have the figure in front of me.

 

[Charpress]

I'm with Norwayguy on this.

First off, how can anyone create income with nothing paid up front? Even with the money paid up front and deferred for five years, the best I can find on a guaranteed basis is about $9k with a rider that would allow the income to go up each year for life. For someone in excellent health, I would be more concerned about putting someone in any fixed income product for life considering the probable inflation scenario staring at us. I suspect that $9k or even $12k is going to be an unimpressive amount in 5 years.

If there is a way to get a 10% lifetime return without paying anything up front, I would like to know how to do that.

 

[supersupps]

The 125 k was a figure given me from an annuity fmo guy. I havent seen her cd amounts yet.. I only know that she said she;d like 1,000 after 5 yrs, per month , per her life.. Arent; there products that will increase the 1,000 based on inflation thru her lifetime?

 

[Norwayguy]

The 125 k was a figure given me from an annuity fmo guy. I havent seen her cd amounts yet.. I only know that she said she;d like 1,000 after 5 yrs, per month , per her life.. Arent; there products that will increase the 1,000 based on inflation thru her lifetime?

Find out what she has first....One of your most powerful phrases when you find out that she has $60K or some other number would be "No" you can not create that income for life based on the amount or you may find it would be very easy to create. Without the proper info we are all shooting in the dark. If she won't give you that info then move on.

 

[supersupps]

We have a an appt for wed where she will be showing me her cd's etc. She also has annuities she wants reviewed. though I know those would probably stay as is unless they are real real poor. And she has an insurance policy I am reviewing..