Case Design for Client

[achuwsb]

Hi guys,

I need some suggestions for a client of mine shes 54 yo has a 18k IRA thats underperforming and she very concerned. Currently max funding her 401(k) she had about 50K in her 401(k) but she loaned about half of it earlier this year. She has a large VUL through AXA. and a 800k UL through nationwide.

my concern is her IRA should I replace it with an annuity?? fixed or indexed? which product would recommend. She does not have a ROTH wouldit be wise to roll the IRA into annuity and have contrbiute into a ROTH??

and Her two ULs: would it be better to concolidate the two policies into one?? she uses the VUL for cash accumulation. and the nationwide for LTC benefit.

she is currently still contributing to all of her plans/policies.

THanks in advance guys I didnt really which section to put this in so sorry if its in the wrong place.

 

[Norwayguy]

Hi guys,

I need some suggestions for a client of mine shes 54 yo has a 18k IRA thats underperforming and she very concerned. Currently max funding her 401(k) she had about 50K in her 401(k) but she loaned about half of it earlier this year. She has a large VUL through AXA. and a 800k UL through nationwide.

my concern is her IRA should I replace it with an annuity?? fixed or indexed? which product would recommend. She does not have a ROTH wouldit be wise to roll the IRA into annuity and have contrbiute into a ROTH??

and Her two ULs: would it be better to concolidate the two policies into one?? she uses the VUL for cash accumulation. and the nationwide for LTC benefit.

she is currently still contributing to all of her plans/policies.

THanks in advance guys I didnt really which section to put this in so sorry if its in the wrong place.

How about some more specifics...WE know she has 18k in the IRA but now what it is currently invested in and if there are and CDSC to move out of it....

You mention she max funds her 401K and that would make me think it has a large value to it until you say she loaned half of it out this past year , max loan is 50% ut to 50K so max 401k balance was $100K is she current on paying back the 401K loan?

She has a large VUL, large how in death benefit or in CSV? And an 800K UL from Nationwide specifically for a LTC benefit?

What makes you think taking out 1 new policy now would be beneficial is she even insurable? What are you trying to accomplish?

 

[achuwsb]

How about some more specifics...WE know she has 18k in the IRA but now what it is currently invested in and if there are and CDSC to move out of it....

You mention she max funds her 401K and that would make me think it has a large value to it until you say she loaned half of it out this past year , max loan is 50% ut to 50K so max 401k balance was $100K is she current on paying back the 401K loan?

She has a large VUL, large how in death benefit or in CSV? And an 800K UL from Nationwide specifically for a LTC benefit?

What makes you think taking out 1 new policy now would be beneficial is she even insurable? What are you trying to accomplish?

thanks for the response currently thats all the info I have.

The IRA is currently invested in Mutual funds I am not sure which funds they are in right now.

She is paying back the loan on the 401(k)

I dont have the specific for that VUL. and the Nationwide is the 800K DB ULtimate paying NLP with 500k LTC benefit.

SHe is healthy and probably insurable( you wouldnt really know until you go through underwriting). I was considering consolidated the two policies we could streamline her premium to Benefit. I know she had taken Withdrawals from her VUL and the UL is only 2years old.

She is still contributing money into these vehicles and I am trying to help her get more out of her dollars (benefit / tax advatage / safety) considering she has 10 years before she plans to retire.

 

[VolAgent]

Until she stops raiding these accounts for cash, there isn't much you are going to be able to do.

Stop focusing on return and start focusing on saving more and leaving it alone. As is, she will undo everything you accomplish the next time she raids it for money. She is living in the now and not thinking about the future.

 

[achuwsb]

she is a small business owner so due to the economy she needed to access some of her money important part is she is still funding(and paying back the money that shes used) and in her pre-retirement stage. she needs to make sure her plan is as efficient as possible.

 

[Norwayguy]

she is a small business owner so due to the economy she needed to access some of her money important part is she is still funding(and paying back the money that shes used) and in her pre-retirement stage. she needs to make sure her plan is as efficient as possible.

Efficient as possible.....I think you said she is 54....Stop screwing with words like efficient....Ask her if she is still comfortable with losing money, because what you are talking about are vehicles with Guarantees, Principal is GUARANTEED, Never goes backwards, depending on if you are talking about an index product of just straight fixed you can say is Guaranteed to grow....Her Mutual funds and her VUL don't do that, she knows it.

 

[achuwsb]

Efficient as possible.....I think you said she is 54....Stop screwing with words like efficient....Ask her if she is still comfortable with losing money, because what you are talking about are vehicles with Guarantees, Principal is GUARANTEED, Never goes backwards, depending on if you are talking about an index product of just straight fixed you can say is Guaranteed to grow....Her Mutual funds and her VUL don't do that, she knows it.

ok so what would you recommend. I was considering proposing that she rolled the existing IRA into an defferred Indexed annuity(stop contributions), starting another one as a ROTH(max fund), consolidate the VUL and UL into a IUL with LTC rider.

last thought Would it be wise to recommend her rollout her 401(k) @ this point also??

 

[Norwayguy]

ok so what would you recommend. I was considering proposing that she rolled the existing IRA into an defferred Indexed annuity(stop contributions), starting another one as a ROTH(max fund), consolidate the VUL and UL into a IUL with LTC rider.

last thought Would it be wise to recommend her rollout her 401(k) @ this point also??

You never mentioned her income, is she even eligible for a Roth IRA? On the 401K you mentioned she is self employed is this a solo 401K or are there other employees and does the plan document allow for inservice rollovers?

 

[achuwsb]

You never mentioned her income, is she even eligible for a Roth IRA? On the 401K you mentioned she is self employed is this a solo 401K or are there other employees and does the plan document allow for inservice rollovers?

yes she does qualify, there are other employees in the 401(k) plan. I'm not sure if it does I would have to check to see if it does