Case study / recommendations?

[rc26]

74 m and 66 f in Genworth IRA Va.. cv/csv $144,800... high watermark income rider ~$206,000 .. pay out if activated 6%, ~12,300 single Life option .. currently only taking rmds, dont plan on drawing more while husband is alive

Clients concerns: market volatility, 3.75% in fees, only a single life income rider

Is there a fia with an income rider we could set up joint life that would accept this kind of divergence?

Or any other Thoughts\ comments appreciated

 

[brookfieldpartners]

Is it his IRA or her IRA?

 

[rc26]

Is it his IRA or her IRA?

His

 

[brookfieldpartners]

Not sure of any health situations. The immediate thing that came to my mind (if they don't need the income while he is alive) was - take the income and fund a life insurance policy.

At his demise, the spouse could use the proceeds to convert the IRA to a Roth IRA. It sounds like they've already earmarked that asset as a legacy asset.

Is drawing the income going to affect their tax situation?

Someone not needing the income tells me it's more of a topic of life insurance than investment/annuity products.

 

[rc26]

I thought of that as well, he does have some medical conditions I’m aware of so I did not go down that road too far but will revisit with more information

 

[Tahoe Ray]

74 m and 66 f in Genworth IRA Va.. cv/csv $144,800... high watermark income rider ~$206,000 .. pay out if activated 6%, ~12,300 single Life option .. currently only taking rmds, dont plan on drawing more while husband is alive

Clients concerns: market volatility, 3.75% in fees, only a single life income rider

Is there a fia with an income rider we could set up joint life that would accept this kind of divergence?

Or any other Thoughts\ comments appreciated

I think you're way too far underwater for a company to accept a transfer to a new product with a lifetime income living benefit.

He might consider turning on income now and trying to get into Genworth's pocket before he dies. He could just save the after-tax proceeds in a bank account for the benefit of his wife if he doesn't need it.