Who Has the Most Leinant Suitabillity?

[taz]

I have a 71 year old that has 30K liquid and a 25K annuity she currently is receiving income on and 80K that she would like to transfer into something with an income rider. So she has 135K in total assets and the 80K is after a 4.5% surrender.

Companies are requesting 50% of income liquid or at least 50K. I didn't realize they have got so strict on low net worth individuals.

Who would anyone suggest trying?

Thanks for the help in advance.

 

[scagnt83]

I have a 71 year old that has 30K liquid and a 25K annuity she currently is receiving income on and 80K that she would like to transfer into something with an income rider. So she has 135K in total assets and the 80K is after a 4.5% surrender.

Companies are requesting 50% of income liquid or at least 50K. I didn't realize they have got so strict on low net worth individuals.

Who would anyone suggest trying?

Thanks for the help in advance.

There might be one that will take it but I hope there isnt. Nothing about what you described sounds suitable in the least bit. Especially convincing her to take a 4.5% haircut from Surrender Charges when she has so little in the first place.

 

[VolAgent]

I hope she is a little old lady with no relatives or close friends.

 

[taz]

So she should just keep taking the RMD out of it until it runs dry or would you put her in a mutual fund until she looses it all? 4.5% is nothing compared to having her annuitize it and than die even with a period certain.

 

[scagnt83]

I hope she is a little old lady with no relatives or close friends.

LOL. I hope she has a very involved relative who kicks this guy out to the curb where he belongs. Way too many fish in the sea to take advantage of someone.

----------

So she should just keep taking the RMD out of it until it runs dry or would you put her in a mutual fund until she looses it all? 4.5% is nothing compared to having her annuitize it and than die even with a period certain.

Transferring to a new annuity will not solve the RMD issue unless she does a ROTH conversion in the process.
She will have to take RMDs regardless of the product. Are you aware of how RMDs work?

No one said anything about mutual funds. We just are saying that taking a 4.5% reduction just to go into another annuity is 99.9% likely not to be in her best interest.

 

[VolAgent]

So she should just keep taking the RMD out of it until it runs dry or would you put her in a mutual fund until she looses it all? 4.5% is nothing compared to having her annuitize it and than die even with a period certain.

You don't seem to grasp the point of RMDs. They are designed to make her withdraw all the money so it can be taxed. Nothing is going to fix that. Even if you put the money into an annuity with a living benefit rider, the RMD will continue to grow unless the account balance decreases.

Even if you did a Roth conversion, the money becomes taxable at that time.

Finally, who says that putting it in mutual funds means that she is going to lose it all??? Not all mutual funds are dogs. Many are going to do roughly what the index does, minus management fees.

 

[taz]

She is looking to turning it into an income stream. The current annuity does not have a income rider and the only way to get income out of it is to Annuitize. What would you suggest doing to avoid the charge.

----------

You don't seem to grasp the point of RMDs. They are designed to make her withdraw all the money so it can be taxed. Nothing is going to fix that. Even if you put the money into an annuity with a living benefit rider, the RMD will continue to grow unless the account balance decreases.

Even if you did a Roth conversion, the money becomes taxable at that time.

Finally, who says that putting it in mutual funds means that she is going to lose it all??? Not all mutual funds are dogs. Many are going to do roughly what the index does, minus management fees.

I grasp RMD's and I said Mutual funds to weed out the comments from different experts.

That is why she is looking for an income rider. Have you ever heard of INCOME RIDERS?

 

[SanDiego619]

I have a 71 year old that has 30K liquid and a 25K annuity she currently is receiving income on and 80K that she would like to transfer into something with an income rider. So she has 135K in total assets and the 80K is after a 4.5% surrender. Companies are requesting 50% of income liquid or at least 50K. I didn't realize they have got so strict on low net worth individuals. Who would anyone suggest trying? Thanks for the help in advance.

Don't know if you'd wanna write it but Phoenix is pretty damn lenient

 

[taz]

Yeah that is where 26K of it is getting the income from. I was thinking that as last resort, because I do not like having all eggs in one basket. I am not sure about the SGA when it comes to riders. Do they look at it the same way if a company is in receivership? I have never got a clear answer. I am sure some one on hear should know, but you do not get as much help as S***.

Thank You for putting in an effort San Diego!

 

[scagnt83]

I am not sure about the SGA when it comes to riders. Do they look at it the same way if a company is in receivership? I have never got a clear answer. I am sure some one on hear should know, but you do not get as much help as S***.

From what I have been told most states SGA will cover the income rider.