Best Income Annuity with 13 Years of Defferal

[TRSecurity]

Does anyone have suggestions for additional products I should consider for this particular case:

Age 57, Florida
Expects to live past age 90 based on family history
Has 1.3 million in both qualified and non qualified sources (still debating which he will use and reviewing roth conv.)
Wants to put 1.3 mill into a product(s) that he can take as an income stream at age 70.
He is looking for guaranteed income for life.

I have got him to agree to split the money into 3-5 different annuities and have focused on these:
Allianz MasterDex X
RBC Enhanced Choice 10 or 12
Life of Southwest SecurePlus Premier 8
National Western Life Ultra Future and Ultra Benefit

Anyone have any other suggestions as to products that will provide the most income at age 70? I want to make sure I am aware of what else is out there.

Thanks!

 

[Freddie]

Also take a look at Aviva/Annexus with it's income rider.

 

[HarryRenard]

Lsw has the SecurePlus Premier10 coming out 1/1/10, witha nice bonus andtheyhaveagood income rider.
- - - - - - - - - - - - - - - - - -
Is the 1.3 all of his liquid assests, besides checking.
Not sure if i agree on putting all of a 57 yr olds money in annuities, but then again I dont have all the facts.

BTW- Why 3 different companies? Just curious what you are thinking there.

 

[dgoldenz]

I got an e-mail recently about Great American having a bonus plus 10% income rider....no mention if that was simple or compound interest, payout percentage, or the other terms...haven't been able to find any info either. Anyone else heard of it?

 

[TRSecurity]

Lsw has the SecurePlus Premier10 coming out 1/1/10, witha nice bonus andtheyhaveagood income rider.
- - - - - - - - - - - - - - - - - -
Is the 1.3 all of his liquid assests, besides checking.
Not sure if i agree on putting all of a 57 yr olds money in annuities, but then again I dont have all the facts.

BTW- Why 3 different companies? Just curious what you are thinking there.

I will definitely check out the premier 10. As for this case - this is definitely not all of his liquid assets. Less than 40%. As for 3 different companies- protecting against any one company from getting into trouble down this long road.
Thanks

 

[free2008]

The BPA has an 8% roll-up guaranteed for up to 18 years. They will also pay out the remaining income value over five years at death of the own/annuitant as long as there is still at least $1 in the underlying account value and it is in the income phase. If it's still in the deferral phase they also pay the income value as a death benefit over five years. I don't personally know of any other income riders that can be paid out as a death benefit. I'm thinking that Allianz might, but I can't remember for sure.

 

[mipalj]

Forethought Income 125 is a really good income product.

 

[TRSecurity]

Forethought Income 125 is a really good income product.

I agree the Income 125 product is good - but not in this situation. He is turning on the income rider much later so the Income 125 comes out worse than other products over that time line. He is trying to maximize his income and not focused on leaving behind to beneficiary.

I am now leaning toward the LSW Premier 10 which comes out next week (thanks Harry) and the RBC Enhanced Choice. Although, still checking out Aviva.

Any other suggestions?

 

[Charpress]

Not considering the Allianz products any more?

One thing to factor in, especially if your client agrees that inflation may be a key factor, is that some of the Allianz income riders allow the income itself to go up every year once income is turned on. Since the same indexing or fixed rate methods are used in the income rider adjustments, it can make a huge difference if inflation kicks in and declared interest rates in the product go up.

The Great American 10% product mentioned earlier is indeed simple interest, not compounded.

 

[TRSecurity]

Charpress -

I have looked into option 2 on the Allianz simple income II rider. My initial reaction was that the income value was significantly lower than that of comparable products after 13 years accumulation. My client is very focused on the income amount and with Allianz paying 5.5% at age 70 vs. a company paying 6%, there is a big difference.

However, you make a good point about inflation which I have discussed with the client. I have not run the numbers to see what sort of rates would be needed to "catch-up" or even surpass the other products during the income phase. It would be subjective, and I like guarantees, but I will crunch some #'s.

I'll try to remember to post those results. Thanks.