Suggestions for High-Yield Annuity in KY

[Jazzz1959]

Good Day All:

I have an opportunity to sell an Annuity in a retirement situation. 75 yo male, heart attack with one stent, but doing well now. Not single premium, but starting in Feb. will have money available to place in annuity, app. $300K over the course of 2011, with another $300K over the next three years. Since CD rates are so bad, what fixed rate of return can I get for him from a quality company. What could I expect as a typical commision schedule?
Thanks!

 

[Norwayguy]

Good Day All:

I have an opportunity to sell an Annuity in a retirement situation. 75 yo male, heart attack with one stent, but doing well now. Not single premium, but starting in Feb. will have money available to place in annuity, app. $300K over the course of 2011, with another $300K over the next three years. Since CD rates are so bad, what fixed rate of return can I get for him from a quality company. What could I expect as a typical commision schedule?
Thanks!

Is this money how plans on acessing for income or does he plan on just having this defer? You mention CD rates and annuities what length of time is he willing to lock the money up for because there is a big difference between 3 years and 10 years especially based on his age.

You also didn't mention if this is qualified which I would doubt based on the payout or non-qualified money.

Commissions will be all over the place dependent on what you do for this client but 600K will provide you with a nice payday no matter which products you use...Don't let commission rates lead you by the nose...Find out what the client wants to accomplish and find him the best product for his situation the commission will follow.

 

[Jazzz1959]

He wants to access the interest for living expenses and leave the principal amount for his children upon his death. He has not mentioned a time period to lock the money up for, but I don't want to lock him up for 10 years, afraid I might keep him from participating in any interest rate increases. Also, this is not qualified money.
Thanks!

 

[Norwayguy]

He wants to access the interest for living expenses and leave the principal amount for his children upon his death. He has not mentioned a time period to lock the money up for, but I don't want to lock him up for 10 years, afraid I might keep him from participating in any interest rate increases. Also, this is not qualified money.
Thanks!

A portfolio of different length annuities would allow for different surrender charge lengths different interest. This doesn't sound like a 1 annuity deal.

 

[lbritt]

^
I agree. Maybe even a short-term FIA (5-7 years with ING, American Equity, North American, et al) would work.

Depending on the date of his heart attack you may have the option of putting a portion into a simplified-issue Single Premium Whole Life plan where he can have a tax-free benefit to pass on to beneficiaries and have access to the death benefit (sometimes as much as 95%) for terminal illness, home healthcare, adult day care and other confinement benefits.

Loans are usually available on these plans as well as free withdrawals.

Commission on the short term FIAs is anywhere from 4-7.5%. Commission on the SPWL plans range from 8-15%.