Would You Recomment FIA To..

[aztec]

Would you recommend a FIA to a 64 yrs old female (turning 65 in 3 months) with some minor health issues? She is retired and receiving 700/month from social sec. She has 20k in IRA and plans to leave it for her children. She has no life insurance and doubt she can get one. Husband is still working and plans to retire in a couple of years. They have no emergency fund. They owe 20k on house. Household income is ~30k.

If yes, what company and product would you recommend?
If no, why not?

Oh yeah, I'm fairly new to annuities..

 

[Newby]

If she KNOWS she is leaving it to her kids a single premium life policy would be better.
As a 2nd choice an annuity would be good. She might want to consider one with a death benefit increase guarantee.

 

[justing]

can you place an IRA in a life policy? I didn't think so, but could be wrong.

 

[Newby]

can you place an IRA in a life policy? I didn't think so, but could be wrong.

Missed that part. She would have to pull it out and pay taxes now. That would make it a tax-free inheritance though so it might be worth running the numbers.

 

[justing]

With only making 30K in income, that is a possibility. Could also look at an immediate annuity and pay the WL premium. That would keep the taxes low and achieve the goal.

 

[HarryRenard]

You guys think that taking a 20k ira cashing it in, paying the taxes on it and funding life insurance is a good option for someone that has a mtg, no savings and has a paycut coming?

*I dont really think there is anything wrong with an annuity for her depending on how she wants to use the money. She could aviod market risk, while maybe picking up a little extra interest on her money and take her distributions as needed.

 

[Norwayguy]

Would you recommend a FIA to a 64 yrs old female (turning 65 in 3 months) with some minor health issues? She is retired and receiving 700/month from social sec. She has 20k in IRA and plans to leave it for her children. She has no life insurance and doubt she can get one. Husband is still working and plans to retire in a couple of years. They have no emergency fund. They owe 20k on house. Household income is ~30k.

If yes, what company and product would you recommend?
If no, why not?

Oh yeah, I'm fairly new to annuities..

Am I correct in reading that the only savings they have is this 20K in an IRA. It is not a concern right now because income with the husband working is sufficient? What will happen when he retires in a couple years? You could use a FIA on the IRA but be careful of surrender charge length not only does she need to do RMD in about 5 years but if I'm reading this right I am concerned about what happens in acouple years when the husband retires.

 

[FIG]

There is an annuity contract which will allow for an 8% compounded rollup rate for 18 years. This income account value can be passed to the primary beneficiary over a 5 year payout. So if she deposited 20K and lived for 18 years we could guarantee a little over 80k to the kids!!

 

[Norwayguy]

There is an annuity contract which will allow for an 8% compounded rollup rate for 18 years. This income account value can be passed to the primary beneficiary over a 5 year payout. So if she deposited 20K and lived for 18 years we could guarantee a little over 80k to the kids!!

yeah except that she would be required to begin RMDs in about 5-6 years. Does this rider allow the roll up after distribution has begun? My guess without you telling me the product or rider is no.

 

[TxsRang3r]

This product is the BAA/BPA (I think) and the roll-up continues even while taking RMDs. You can even run illustrations showing what the death benefit would be while taking the RMDs.