Deferred Annuity Question

Discussion in 'Annuities Forum' started by maximas, Oct 10, 2009.

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  1. maximas
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    maximas Active Member

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    I have a married couple who I sold a DI policy to that wants to start a deferred annuity. They only want to put about $70 to $100 a month into it. The wife is 51 and the husband is 47. I am very inexperienced with annuities and could use a little advice…
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    I have been looking at ING, American Equity, and a few others and I cannot find anything even close to this. Does anyone offer a CD-type annuity that is worth having?
     
    Last edited: Oct 10, 2009
  2. xrac
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    xrac Well-Known Member

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    I would start with a good fixed annuity that will allow you to start with a small monthly contribution. In cases like that I just call the wholesaler that we use and see what they have available. What company/companies do you sell for and do they offer annuities?
     
  3. padthaiforlunch
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    padthaiforlunch Well-Known Member

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    Great American has an FIA that will let them make monthly payments as low as $50/month. They will need an initial premium of $1000.
     
  4. maximas
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    maximas Active Member

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    xrac - I am appointed with ING, Aviva, West Coast Life, and others. The companies, I think, are not the problem... It's my general lack of knowledge of the available products that is the problem.

    padthaiforlunch - I will look into your suggestion. That is better than the $10k premium I've seen.

    I appreciate the help!
     
  5. HarryRenard
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    HarryRenard Well-Known Member

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    I think that is a problem, i dont think Aviva or Ing have anything you can start with $100 a month, not sure about the others you listed.
    I think that LSW you can start with $50 a month NO initial deposit needed, and I believe American General offers a simalar product, just check some products must be Qualified with those low monthly's, which is no big deal as long as they dont all ready have.
    Personaly I would consider a ROth if they meet the requirements.
     
  6. maximas
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    maximas Active Member

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    I am appointed with American General, so I will see what they offer.

    As far as a Roth goes, I know they do not surpass the income threshold. That said, are there any other disqualifying factors?


     
  7. Norwayguy
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    Norwayguy Well-Known Member

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    American General recently raised their minimum monthly flex premium to $300 per month...Great American(Annuity Investors) flexmax product allows you to start with $50 per month no initial deposit, Lafayette Life allows $84 per month minimum until $1000 in the policy then no more limits on contributions, LSW I believe is $100 per month.
     
  8. HarryRenard
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    HarryRenard Well-Known Member

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    I am pretty sure that LSW still offers a few options for $50 a month PAC plan. And if they dont have IRA's I would talk with them about a Roth Ira, the tax free benefits could be nice and who knows they might like it enough to contribute a little extra so you can squeeze a check out of it. By the way LSW does not require an initial deposit and its pretty safe to say someone looking to save 70-100 doesnt have a bigger deposit to spend, and thats just my experince.
     
  9. Franz Kafka
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    Franz Kafka Well-Known Member

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    Are they contributing to their qualified plans through work? If yes and they qualify, definitely ROTH. If not, ask them how in the world they expect to retire on 100 bucks a month.
     
  10. maximas
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    maximas Active Member

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    Yes, they are contributing to qualified plans. They wanted to start out at a hundred and once their mortgage is paid off ramp up from there. They have most of their investments in relatively aggressive funds, so they wanted to counter that with relative safety an annuity provides. They just don't have the extra cash to "properly" fund anything until they pay off their mortgage.

     
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