AIG Power Select Plus Income

[RRannuity]

Hey guys, any opinions on AIGs Power Select Plus Income annuity, before I commit money to it? The income rider guarantees a double in 10 years on the income account. Then a payout of 4.8% or so, depending on your age, for life. The payout seems to be good, as opposed to other offerings that say high percentage returns, that do not translate to high payouts.

 

[scagnt83]

It all really just depends on your personal needs and situation. If you are under age 70, you should strongly consider an Income Rider that has inflation protection built into it. In 20 years your initial payout will buy 50% less than it did in the 1st year. This is the #1 pitfall of most income riders. And is why I am very selective about what type of income rider I will sell and who I sell it to.

To know how the AG Rider compares to others we would need to know your age, year to start income, & joint or single payout.

But if you are going to be age 70 or under when starting income, I know that I would likely not recommend it if you were my client.

I do like the Merrill Lynch index that AG offers on their products. And I do sell their 7 year product, just without the Rider.

 

[RRannuity]

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To know how the AG Rider compares to others we would need to know your age, year to start income, & joint or single payout.

Age 54, start payout at 64, and single payout

 

[RRannuity]

It all really just depends on your personal needs and situation. If you are under age 70, you should strongly consider an Income Rider that has inflation protection built into it. In 20 years your initial payout will buy 50% less than it did in the 1st year. This is the #1 pitfall of most income riders. And is why I am very selective about what type of income rider I will sell and who I sell it to.
..

Did some research on this and the
the problem with buying an income rider with an adjustment for cost of living is that they don't pay out as much for many years, to make up what you can get without it. You would have to live well beyond your live expectancy to reap the benefit. Therefore COLAs are not worth the price you pay to have it.

 

[RRannuity]

It all really just depends on your personal needs and situation. If you are under age 70, you should strongly consider an Income Rider that has inflation protection built into it. In 20 years your initial payout will buy 50% less than it did in the 1st year. This is the #1 pitfall of most income riders. And is why I am very selective about what type of income rider I will sell and who I sell it to.

The problem with purchasing an income rider with inflation protection is that you are unlikely to live long enough to let it pay for itself. You will end up sacrificing up front, and slowly getting it back as it kicks in. Research has shown that you would have to live well beyond your life expectancy in order for this to pay for itself. So my conclusion was to pass on the COLA.