OP said they lost 60k in their 401k so I just assumed it was much larger.
Appropriate to roll over entire 401k to FIA?
- Thread starter ValeRosso
- Start date
- 4,933
Yes, OP did say that.....but maybe clients lost it in their 401k from taking too much out, not market losses, lol.
OP modified the facts afte your question to make the annuity sale be less than 50% of total assets. Maybe OP is mixing total & liquid.
But, yeah, it got by compliance & is placed..... plus, it gives them a "quite a bit" more income than something not limited with caps & participation rates.......
I'm sure there is a lifetime income rider in there which makes caps/participation less important (assuming the primary need was safe, guaranteed income.).
- 4,933
Agree
- 7,009
That comment came from me in my response to OP. I was just trying to make a perspective distinction, while I had been thinking about exactly the same issue within broadly the same situation, my 401K is smaller than the $200K-$400K 401K I figured OP was talking about.
TR's comments are the way I read OP's posts. I was quite startled to see the comment about 401K being less than 50% of assets after the $60K comment in the initial post.
One thing in OP's initial post that led me to respond was the prospect's trouble with "stock market loss". The essence of my comment there was, from when? If the perceived "loss" is from a high in 2022 (after crowing about previous gains), I don't really see that as a "loss". I see it more as a return to a norm. My 401K RMD's show something of a camel's hump in 2021 and 2022 over preceeding and following years (with minimal tinkering with the underlying asset allocations). I can't imagine I am the only person in the United States for whom that holds true.
What I see as "lost" is an opportunity to have captured some of the market gains by moving money from stock allocations to cash allocations sometime during that period of rising stock prices.
From the perspective of making an annuity sale, that may be overthinking things, just say the prospect is concerned with Market Volatility, present a solution and carry on.
