So I'm New to Annuities, but What Should I Do for This Client?

[NCAgent]

This is something that I'm going to pick up SLOWLY since I'm still getting some of the finer details of life insurance right now.

I have a client who is a male 22 year old where I have the home, auto, and a WL policy for right now. He is interested in saving up already for retirement, but he doesn't have a huge amount of funds at this time to access but expects it to obviously go up in the future...

I already talked to him about having 6 months of expenses stored in the bank and things, he says that he will have that done before he starts this, which should hopefully be sometime next month.

What is the best kind of annuity to get for him that will allow for the best payout when he retires, assuming he is rather averse to risk? I'm not sure the questions to be asking, so I apologize if I didn't ask everything. Now, he knows that this is for the long run, over 40 years from now. He is going on the assumption of retiring at 65 but maybe swinging to retiring early, like in his 50s or early 60s instead.

He says he can try to put away about 30-40 a month right now comfortably. Is there an annuity that he can start or should I tell him to store away some until he has a large lump sum to give, or what? He isn't in any rush but he would like to get something started now.

Smart kid, I wish a lot of people this age started thinking about this

Again, this is something totally new to me but it is to him as well. I just want to have something to talk to him about when I see him again next week.

Any product ideas, or strategies, or companies to look at for him?


Thanks!

 

[Norwayguy]

Re: So I'm New to Annuities, but What Should I Do for This Client

This is something that I'm going to pick up SLOWLY since I'm still getting some of the finer details of life insurance right now.

I have a client who is a male 22 year old where I have the home, auto, and a WL policy for right now. He is interested in saving up already for retirement, but he doesn't have a huge amount of funds at this time to access but expects it to obviously go up in the future...

I already talked to him about having 6 months of expenses stored in the bank and things, he says that he will have that done before he starts this, which should hopefully be sometime next month.

What is the best kind of annuity to get for him that will allow for the best payout when he retires, assuming he is rather averse to risk? I'm not sure the questions to be asking, so I apologize if I didn't ask everything. Now, he knows that this is for the long run, over 40 years from now. He is going on the assumption of retiring at 65 but maybe swinging to retiring early, like in his 50s or early 60s instead.

He says he can try to put away about 30-40 a month right now comfortably. Is there an annuity that he can start or should I tell him to store away some until he has a large lump sum to give, or what? He isn't in any rush but he would like to get something started now.

Smart kid, I wish a lot of people this age started thinking about this

Again, this is something totally new to me but it is to him as well. I just want to have something to talk to him about when I see him again next week.

Any product ideas, or strategies, or companies to look at for him?


Thanks!

I wouldn't worry about which annuity will give him the best payout at retirement because in all likelyhood you will be recommending a transfer sometime down the road once the account has built up some.

If all he can put away comfortably each month is 30-40 you'll find your options are very limited. If you can bump it up to $50 many of the 403(b) carriers will do an eft for $50 per month such as AILIC....I know ING Retirement Plus is a straight fixed an I believe it goes down to as low as $10 per month but would have a 1 time $20 or $25 or $30 fee if after 12 months the account has not reached $2000 (You can see I rarely sell that as an IRA) Presidential also has an annuity that goes down to $10 or $20 per month. I think those 2 would be your best bet for someone only putting an amount under $50 per month away.

Take a close look at INGs Retirement Plus in my state the guaranteed minimum is still 3% and the product has a 4% bonus on every deposit for 10 years (vesting int he bonus happens in years 11-15) other than that 1 time charge it wouldn't be a bad choice if your state is one of those still at 3% but you will have to check as most states have been refiled for a 1% minimum guarantee.

 

[NCAgent]

Re: So I'm New to Annuities, but What Should I Do for This Client

I wouldn't worry about which annuity will give him the best payout at retirement because in all likelyhood you will be recommending a transfer sometime down the road once the account has built up some.

If all he can put away comfortably each month is 30-40 you'll find your options are very limited. If you can bump it up to $50 many of the 403(b) carriers will do an eft for $50 per month such as AILIC....I know ING Retirement Plus is a straight fixed an I believe it goes down to as low as $10 per month but would have a 1 time $20 or $25 or $30 fee if after 12 months the account has not reached $2000 (You can see I rarely sell that as an IRA) Presidential also has an annuity that goes down to $10 or $20 per month. I think those 2 would be your best bet for someone only putting an amount under $50 per month away.

Take a close look at INGs Retirement Plus in my state the guaranteed minimum is still 3% and the product has a 4% bonus on every deposit for 10 years (vesting int he bonus happens in years 11-15) other than that 1 time charge it wouldn't be a bad choice if your state is one of those still at 3% but you will have to check as most states have been refiled for a 1% minimum guarantee.

Okay, so what would the plan be if the client waited a few more months and saved up so he could make the 50/month payments right now? I would probably suggest that to him as an option but I'm sure the difference won't matter. I think he cares more about performance at this time and if it takes a few extra dollars to get that done, then he will do that more than likely.

 

[iceco1d]

Re: So I'm New to Annuities, but What Should I Do for This Client

VALIC ProFlex. Did the client express his desire to have zero market risk?

 

[Norwayguy]

Re: So I'm New to Annuities, but What Should I Do for This Client

Okay, so what would the plan be if the client waited a few more months and saved up so he could make the 50/month payments right now? I would probably suggest that to him as an option but I'm sure the difference won't matter. I think he cares more about performance at this time and if it takes a few extra dollars to get that done, then he will do that more than likely.

Depends on what he wants...He can go FIA with AILIC Flexmax or Flexmax Plus. Or he can go straight Fixed with VALIC, AILIC and others...