Why is the insurance company putting a limit on my annuity purchase.

Jul 18, 2018

  1. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    However, I will admit that MOST people who are "life only agents" probably don't know how to do a non-securities recommendation like this.
     
    DHK, Sep 11, 2018
    #21
  2. Allen Trent
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    Allen Trent Guru

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    I agree it can be done. However, I have also seen agents mistakenly use generalizations about 401k they have heard, but don't understand or don't apply to a persons actual plan. Stating their are "load fees of 5.75%" because it is a mutual fund, plus there are annual 12b-1 fees, plus because a Variable Annuity is involved with the 401k that there are surrender charges, M&E, living benefit rider costs. Also have seen discussing their actual current fund choices in their plans of say Growth, International or Bond & saying it is better to own the entire S&P 500 index in a FIA---which isn't holding the S&P 500 really all & definitely not participating in the S&P500 dividends.

    So, what they overhead about those items is explained as if factual to that client sometimes out of ignorance, not malice. My point merely was that a person educating someone about their current 401k plan options & expenses might not have the full understanding to actually be doing so, but giving the false impression they are a "financial advisor". if they don't know these items, I doubt they are aware of creditor protections, WD penalty free at 55 not 59 1/2, loan ability in next employer plan, etc.
     
  3. Allen Trent
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    Allen Trent Guru

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    Agree completely & didn't see this before my other response
     
  4. IsaacA
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    IsaacA Expert

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    I keep seeing 55 thrown in here. Are you wanting to start income for a 55yr old right away?
     
    IsaacA, Sep 11, 2018
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  5. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    What you probably don't know is that if you separate from service after age 55, and you need money, then you can access money directly from the 401(k) without a 10% IRS penalty.

    But if you roll the money over to a traditional IRA and take money from there, the 10% penalty applies until age 59 1/2.

    It's not about income, but about needing money - in the event of a layoff, or whatever.
     
    DHK, Sep 11, 2018
    #25
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