Rookie Question About Annuity for a Relative

[EasternShore]

Hey guys, I'm a newbie with FE and you've all been incredibly helpful with that, so I thought I'd come to you with this one. Annuities are something I was planning on getting into after I had more FE experience under my belt, but a relative of mine wants to buy an annuity and she wants to make sure I get the commission. She's 62, retired (except for a part-time job to keep her busy), and is looking to put about 100K into it. Any thoughts on which way to point her? I'm doing a ton of research on annuities, but I've found this forum to be one of the best sources of information on the Internet so I'd love to get your thoughts about it. Thanks a ton!!

 

[ShawnSIM]

What would you say her main concern is for her money? Other than not losing it. Why is she wanting an annuity? Is she looking for more growth potential or looking to put her money into something safe and let it grow slowly? Does she need a guaranteed income stream immediately or is she ok to tie the money up for a few years?

 

[EasternShore]

She just doesn't trust the market so she wants to spread it around. The 100K represents a part of her savings but not all of it. She wants to diversify so that her retirements funds are not at the mercy of all the outside factors that can affect the market.

 

[ShawnSIM]

It sounds like a MYGA, multi-year guaranteed annuity, would be a good fit for her. It's not the sexy hot product that indexed annuities are right now, but it will guarantee her stable growth and protect her from outside factors effecting the markets.

 

[EasternShore]

It sounds like a MYGA, multi-year guaranteed annuity, would be a good fit for her. It's not the sexy hot product that indexed annuities are right now, but it will guarantee her stable growth and protect her from outside factors effecting the markets.

Thanks Shawn! I appreciate your help!

 

[JoeAnnuity]

Thanks Shawn! I appreciate your help!

I would also take a look at the Sagicor Indexed Annuity.

- Minimum 2.00% rate on 100% of premium
- 5.00% premium bonus
- 10% free withdrawal with up to 50% cumulative
- Annual Cap - 4.00%
- 9 yr CDSC

The reason I especially like this contract is the 5% premium bonus and the 2% minimum guarantee. After 2 years it's the same as a guaranteed return of premium, so if your client isn't happy with the product they can walk away after 2 years with the entire premium,

 

[scagnt83]

I would look at the AG Power Protector 7. It has one of the best historical lookbacks on the market right now with its Dynamic Balanced Merrill Lynch Index. It has a 0.9% yearly spread on the 2 year point to point and 100% participation. There is not a capped product that will compete with it.

AE's new product called the Choice series has very strong lookbacks with the S&P Dividend Aristocrats Index. 1.5% spread with 100% participation. It also has a 4.5% Cap on the regular S&P 500.

 

[EAJoe]

I would also take a look at the Sagicor Indexed Annuity.

- Minimum 2.00% rate on 100% of premium
- 5.00% premium bonus
- 10% free withdrawal with up to 50% cumulative
- Annual Cap - 4.00%
- 9 yr CDSC

The reason I especially like this contract is the 5% premium bonus and the 2% minimum guarantee. After 2 years it's the same as a guaranteed return of premium, so if your client isn't happy with the product they can walk away after 2 years with the entire premium,

This is one of the most consumer friendly annuities out there. With the 5% bonus, 2% minimum guaranteed growth, and cumulative free liquidity, you can fully surrender the annuity after two years and still get about a 2% net return.

 

[SanDiego619]

I would look at the AG Power Protector 7. It has one of the best historical lookbacks on the market right now with its Dynamic Balanced Merrill Lynch Index. It has a 0.9% yearly spread on the 2 year point to point and 100% participation. There is not a capped product that will compete with it.

AE's new product called the Choice series has very strong lookbacks with the S&P Dividend Aristocrats Index. 1.5% spread with 100% participation. It also has a 4.5% Cap on the regular S&P 500.

You don't just use 45% par on the choice?

 

[scagnt83]

You don't just use 45% par on the choice?

Im selling the 6, so no (since its 35%).
I dont think this is the right rate environment to sell anything above 7 years. I also like the Dividend Aristocrats Index, it performs better than other 5% RC indexes.