Lady is Thinking About Putting $20K into a CD

[AtlantaLife&Health]

I'm not experienced with annuities at all. I know she could get a better rate with an annuity than with a CD these days. What would you guys recommend for this 78 year old lady?

 

[golfnut]

I would be careful placing any annuity with a 78 year old, unless it is totally suitable for her situation. If it is suitable, a five year MYGA would be my recommendation.

 

[Crabcake Johnny]

20K at 78? Tell her to leave it in her savings account.

 

[Newby]

20K at 78? Tell her to leave it in her savings account.

You can say that without having any idea the purpose of her money or how much money she already has sitting in savings accounts and CDs or anything about her general health or potential lifespan?

That's pretty amazing.

 

[Crabcake Johnny]

You're right. I'll sit this one out while everyone tries to calculate their commission on her. Here's my advice - tell her to sit down with a financial planner - not an insurance agent.

 

[Newby]

She's 78 for god's sake. Tell her to quit paying her health insurance premiums because healthagent figures she is about dead anyway.

Bad call healthagent and you furthered it by assuming she needs a "financial planner" to "invest" her $20,000.

 

[Crabcake Johnny]

Actually, if it's health insurance related she should speak to a health insurance agent. If it's investment related she should speak to...a life insurance agent? Ummmm, no. I'm trained to handle all of her health insurance concerns. Can you please tell me how a life insurance agent is trained to give financial advice?

 

[briko3]

Maybe the better question would be, "what does she need the money for?" or "What would you like to see happen with the money?" or "how long of a time frame are we looking at before we forsee you needing the money".

Healthagent, you're no better than the other "answers" here. You look at it one way and one way only and assume just like others. Quit acting like you're better than everyone or understand this business better than anyone. You might be a good healthagent, but why not stick to that instead of offering your backhanded advice to the rest of the board on NON-HEALTH matters.

 

[scagnt83]

I think what Newby is trying to get at is what is the purpose of this money.

Is it to draw income from?

Or is she just looking for guaranteed growth so she can use it at a later date? If so, how far away is that later date?

What percentage of her assets does this $20K account for?

What is her tax status??

All of this matters... a 5-6 year FA or EIA could be perfectly suitable for this lady as long as the $20k didnt make up a significant amount of her assets....

basically, as always in this business, yes no or maybe... it depends...

But as an agent, you need to make sure this is an appropriate move for the client. If she is looking at a 6 month CD and will need that money in 6 months then an annuity probably wouldnt be an appropriate move...

 

[Crabcake Johnny]

All great questions to ask. And the answers should come from a properly licensed financial professional - not an insurance agent. I'm out. Later.