Best annuity payout 5 years

[bill3173]

Have a client that has a plan to retire in 5 years, and wants the best monthly annuity payout, either from an income rider, or annuitization. I have reviewed a few, but just wanted to see if anyone had a suggestion.

One nice thing about this one, he won't have any trouble passing suitablitiy, this is money he used to play the market for the last 13 years, and hasn't done very well, so he wants something stable. He doesn't care about surrender periods, he wants the most he can get for the $200K.

 

[LostDollar]

Caveat, I am NOT an agent.

I can't speak to annuitization.

As far as income riders are concerned, I have been struggling with that question from a perspective of over 10 years older than your client with 1/4 the funds amount.

For income riders, (in my opinion) before you can take that any further, I think you need to have the answer to 2 questions.

---Is he going to take payouts on a single or joint life basis?

(In my situation and scenarios as an example, Nationwide always comes up top for single life, but disappears when I go to joint life.

---Is there a minimum AM Best rating you will recommend he adhere to?
(will he and you accept B++? Will he and you accept A-?)
(Again, in my personal situation, a B++ carrier offers the best return, but I am not ok with purchasing that contract. On the other hand I feel I have to take the risk of an A- company. I am not sure I would do that with a $100K contract.)

After reading here for the last 2-3 months, I would suggest that you and he consider splitting the purchase, at least into 2 $100K contracts.

My research for contracts at a lower purchase price suggests you will probably find Nationwide, Athene, MNL, and NAC in the group of top income rider payout carriers. Whether one of them will be the absolute top payout carrier for your particular situation I can't say.

 

[MTC]

Need the age of the client.

 

[bill3173]

Need the age of the client.

Yes, that is a crucial bit of info, 65, thought I put it in there

 

[Tahoe Ray]

Yes, that is a crucial bit of info, 65, thought I put it in there

What state?

 

[Allen Trent]

missing some info---are you saying he wants income right away & bridging until he retires in 5 years or that he wants to put money in a deferred annuity for 5 years & then activate an income rider/payout annuity in 5 years when he retires.

Also, suitability & best interest is still an issue. Carrier & agent are not held to a standard of where the money used to be invested, it will be based on overall percentage of total assets he has, how much other liquid assets, etc

 

[Newby]

Caveat, I am NOT an agent.

I can't speak to annuitization.

As far as income riders are concerned, I have been struggling with that question from a perspective of over 10 years older than your client with 1/4 the funds amount.

For income riders, (in my opinion) before you can take that any further, I think you need to have the answer to 2 questions.

---Is he going to take payouts on a single or joint life basis?

(In my situation and scenarios as an example, Nationwide always comes up top for single life, but disappears when I go to joint life.

---Is there a minimum AM Best rating you will recommend he adhere to?
(will he and you accept B++? Will he and you accept A-?)
(Again, in my personal situation, a B++ carrier offers the best return, but I am not ok with purchasing that contract. On the other hand I feel I have to take the risk of an A- company. I am not sure I would do that with a $100K contract.)

After reading here for the last 2-3 months, I would suggest that you and he consider splitting the purchase, at least into 2 $100K contracts.

My research for contracts at a lower purchase price suggests you will probably find Nationwide, Athene, MNL, and NAC in the group of top income rider payout carriers. Whether one of them will be the absolute top payout carrier for your particular situation I can't say.

Unless something has changed married couples should not consider nationwide if they are going to take an income stream at some point. They have to choose at the time of purchasing the annuity, whether it will be a joint or single on the income stream. So if your wife died two years in, and you had not turned on the income stream yet when you did it later, it would still be based on the joint payout.
Most of their competitors do not do it that way, and you choose it at the time of turning on the income stream. that’s the only way I would ever consider doing it.

 

[LostDollar]

Unless something has changed married couples should not consider nationwide if they are going to take an income stream at some point. They have to choose at the time of purchasing the annuity, whether it will be a joint or single on the income stream. So if your wife died two years in, and you had not turned on the income stream yet when you did it later, it would still be based on the joint payout.
Most of their competitors do not do it that way, and you choose it at the time of turning on the income stream. that’s the only way I would ever consider doing it.

Thank you very much for that information. I do have that specific question about some other carriers but OP has not received answers to his question yet so I should not respond further here at this time lest I get accused of hi-jacking the thread.

 

[bill3173]

missing some info---are you saying he wants income right away & bridging until he retires in 5 years or that he wants to put money in a deferred annuity for 5 years & then activate an income rider/payout annuity in 5 years when he retires.

Also, suitability & best interest is still an issue. Carrier & agent are not held to a standard of where the money used to be invested, it will be based on overall percentage of total assets he has, how much other liquid assets, etc

 

[bill3173]

Guess I wasn't clear, he wants the money to complement his retirement in 5 years, hence, the lack of concern about a surrender period and possibly using an income rider.

He will pass suitability, otherwise, I wouldn't have brought this up.

Anyway, I believe we've settled on something, so yall can go back to whatever you were doing, thank you for the responses.