Best Cola Companies for Index Annuities

[zoretic1]

I have a couple both 57 yrs of age. They want to defer lifetime payout for 3 yrs and then start taking joint income. Want the income to be at 5K per month at the start and want cost of living adjustment on the annuity. I have looked at Am. Equity, ForeThought, and Annexus to this point. Are there any other companies with COLA'S that I should consider? I fiqured about 1,484,000.00 would be the amount with Am. Equity to get to 5K monthly payout in 3 years.They want fixed index, not any variable annuities.

 

[Newby]

I have a couple both 57 yrs of age. They want to defer lifetime payout for 3 yrs and then start taking joint income. Want the income to be at 5K per month at the start and want cost of living adjustment on the annuity. I have looked at Am. Equity, ForeThought, and Annexus to this point. Are there any other companies with COLA'S that I should consider? I fiqured about 1,484,000.00 would be the amount with Am. Equity to get to 5K monthly payout in 3 years.They want fixed index, not any variable annuities.

Play around with splitting the money into two annuities. Let one defer and roll up for 10-years minimum. If they need to start taking taking $60,000 a year out in 3-years you will need $600,000 in the 1st one and have them pull their 10% free withdrawal starting in year three. Do that for 10-years while the guaranteed roll up on the 2nd one builds up steam.

Make sure if the 2nd one is age banded that you maximize the payout % by waiting until the youngest spouse hits the next age band before locking in the lifetime income. See what your illustration will guarantee at that point.

Also make sure the one you choose as the first one allows 10% of the initial deposit to be withdrawn not 10% of the decreasing account. Or else you will need to put more in that one.

Finally they can turn on income stream on what's left in the 1st one to add to the income of the 2nd one.

You should be able to reach your $60,000 annual goal easily with what you are working with there.

 

[zoretic1]

Newby,

Appreciate the thoughts but that is not the issue. I need the best companies with an inflation rider on the lifetime payout. Client is adamant about this feature, wants the payout to increase each year. I will split up into 2 or even 3 companies for diversity, so I need to find the companies that offer the best inflation riders!!What other companies (if any) offer decent inflation riders on the lifetime payout?

Zoretic1

 

[Tahoe Ray]

Newby,

Appreciate the thoughts but that is not the issue. I need the best companies with an inflation rider on the lifetime payout. Client is adamant about this feature, wants the payout to increase each year. I will split up into 2 or even 3 companies for diversity, so I need to find the companies that offer the best inflation riders!!What other companies (if any) offer decent inflation riders on the lifetime payout?

Zoretic1

If you're going to split it up, look at Mass and NY Life's deferred income annuities. AE is a great option but these products will match AE's distribution and give you some diversification.

Let me know if you need more info.

 

[zoretic1]

Tahoe Ray,
I thought NY Life was captive. Anyway, what are the inflation% on the riders and I would appreciate any and all thoughts on the best course of action. I used 1,484,000.00 with AE to get to 5K monthly payout after 3yr deferral. This quote was with their increasing payout rider that increased each year by 3%.

 

[Tahoe Ray]

Tahoe Ray,
I thought NY Life was captive. Anyway, what are the inflation% on the riders and I would appreciate any and all thoughts on the best course of action. I used 1,484,000.00 with AE to get to 5K monthly payout after 3yr deferral. This quote was with their increasing payout rider that increased each year by 3%.

That's the same quote that I ran and it was roughly the same as AE. I have NY Life for annuities as an IMO. You can get paid as a broker on these products (but they pay like a SPIA so the comp isn't great...)

PM me if you want to use them as a partial on this case.

Nice one, BTW......