My 1st Annuity Thread

[Fisher]

Aloha all--

Have a 69 year old client who just informed me that she is sick and tired of losing money in her Smith Barney account. Apparently has degenerated from about 165K to about 112k since 9/11. She's not sure if it's individual stocks and bonds or mutual funds. We will have a sitdown next week to look over the portfolio.

She is fine with tying up the funds for about 6 years and then possibly using them to augment retirement funds. I use 'possibly' because the outlook I suggested is 'Better safe than sorry.'

Not sure if I'm excited about the bonus products in this scenario. We briefly discussed EIAs and she was receptive to that scenario.

Better/other ideas are always welcome.

 

[0b1kanobee]

Well don't wait too long. The market is up and so might be her account. Might be a good time to see about locking in those gains (if she has any) by her putting the money in say a money market account where the funds are currently held.

Of course it may not be either LOL I transferred monies last Friday and as of today my client has lost a few grand or so because the damm market is up now. Oh well.

Anyway, just know that if you use a product with an income rider, chances are you will never do anything with the money again. There are some good 6 year products out there. After 6 years and depending on her financial situation, you could look for something else or maybe even do a SPIA.

I haven't been keen on income riders lately. When you finally gather all her info about what her expectations are, what her liabilities are along with assets ect. ect. you can PM me and I'll give you some ideas if you like.

 

[Fisher]

I appreciate that, Obi.

 

[Norwayguy]

Is this qualified money? If so realize you have about 1 1/2 years before RMDs would kick in. Just make sure any annuity you select allows for penalty free RMD withdrawals even if they exceed the 10 percent free withdrawal amount. Many do but its something to keep in mind.

Also find out what this money is for...If at 69 and she is fine with waiting 6 years to age 75 and then supplementing retirement with this then we may be taling legacy money and you might be better thinking about moving some to a life policy....I'm just saying keep an open mind and get facts.