Does anyone know if this is the best Fixed Indexed Annuity for a 69 year old?
Problem I see is only after 10 years can you get the proceeds of the increased value derived from the indexing. Not sure I'll live that long by family mortality.
Look up scagnt83 here on the forums. He is in SC and writes a lot of FIAs...you should be able to email him if you pull up his profile.
- 16,880
Does anyone know if this is the best Fixed Indexed Annuity for a 69 year old?
Problem I see is only after 10 years can you get the proceeds of the increased value derived from the indexing. Not sure I'll live that long by family mortality.
Allianz has some interesting new indexed annuities for people deferring 10-years. I'm going from memory but I think the 360 is the one I like for that. Illustrate it with the Barclays index.
If you want immediate income that's a whole different focus. ForeThought bonus annuities are usually in the ballpark there.
- Thread starter
- #4
- 16,880
You appear to only have a very basic understanding. You need a good broker. I would call Brokers Alliance or another good national FMO and have them refer you to a good annuity focused agent in your town.
Tarkenton Financial in Atlanta is another good one to call for a referal.
Insurance Forum - View Profile: scagnt83
Click the tab that says contact info and then send an email.
Your objectives and finances are really going to dictate what product is right for you...that's why it will be difficult for for you get any real direction without sitting down (physically or virtually) with someone.
Maybe you've already discussed this with another agent but it seems that you're having doubts. Hopefully, you've reviewed a couple of options so that you can find a solution that fits your needs.
If not or you're just uncomfortable, get a second opinion. There aren't many "do overs" when it comes to retirement income planning so make sure that whatever you go with, you can sleep at night and feel good about your decision.
Good luck.
- 10,328
I sent you a PM. [email protected] is my email.
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Does anyone know if this is the best Fixed Indexed Annuity for a 69 year old?
Problem I see is only after 10 years can you get the proceeds of the increased value derived from the indexing. Not sure I'll live that long by family mortality.
If you dont think you will be around in 10 years then a 10 year product is not right for you. And neither is an Lifetime Income Rider. There are some really good 6 & 7 year options that would be much more appropriate for your situation. They also offer full 100% liquidity after the end of the 6 or 7 year term. Higher indexed caps than the 222. And if you want an income rider, they have a 10% income rider.
Honestly, the 222 seems like a terrible product for your situation... but obviously I dont have all of the details. I would guess that this was recommended by an advisor...?
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Ok. I did some research on the 222 for you. I would most definitely recommend you at least compare some other options.
1. This product takes a total of 15 years to get 100% of your Account Value back.
Since you dont expect to be around in even 11 years, it makes no sense to purchase a 15 year product.
After 10 years, you must take a payout option of a minimum of 5 years. Or you can access the accumulated interest.
Most Indexed Annuity products allow 100% access after the Surrender Period. Most do not require a 5 year payout.
2. 222 has an Indexed Account Cap of 4.25%.
There are shorter term products (better for your situation) with Index Caps up to 7%. (greater potential for gain)
3. 222 has an Income Rider that guarantees an income for life based on your age. The 222's Rider takes the yearly gain and multiplies it by 150%, then uses that amount as your Income Rider Account Value.
So at best the Rider Account will grow at 6.38%, based on the 4.25% cap.
This Income Rider Account Value is only accessible by choosing to receive Lifetime Income Payments.
You mentioned 10% in your other thread. Allianz does have a different Rider and I think it is around 10% right now. But from all the current info on this product, the 10% Income Rider is not available on the 222.
But as I stated earlier, a Lifetime Income Rider is to protect against living too long and running out of money. You dont seem to think you have this problem.
However, there are Death Benefit Riders that will guarantee a Death Benefit that grows at 9%. This might be a better Rider option for your situation.
Again, the 222 just doesnt seem to be a good fit considering the info you have so far provided.
There are products from A+ & AA rated companies that offer a greater chance of return, greater chance of income, with less than half the time commitment.
There is even a 4 year indexed annuity that would match the 222.... much better fit for someone with limited time left.
Feel free to contact me if you would like to discuss more suitable options in detail.
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To be fair, there are more than a couple of incorrect things in your statement.
1. You said that after the surrender period of 10 years, you have to take a 5 year payout or take just the accumulated interest. You’re confusing the 5 year payout. There are two account values to pay attention to here. The “Accumulation Value” is the account that has your original premium plus any index gains. You are able to take this account and run with the money after the 10 year surrender period. You are not just limited to the accumulated interest. Where the 5 year payout comes into play is upon death of the annuity owner. If that person should pass away the beneficiary has the option to either take the “Accumulation Value” account or the “PIV” Account. The PIV is initial premium (or any added in the first 3 years) plus 15% bonus and 150% of index gains. The PIV is the account is used to calculate how much income you will get when you trigger (any time after year 10). It grows very quickly and as long as the beneficiary has a little bit of patience it’s a great feature of the product. If they can’t wait they can always take the “Accumulation Value” Account in one lump sum.
2. You talk about the index cap of 4.25% but you don’t point out the fact that is annual pt to pt. I always do a 50/50 mixed with that and a monthly cap. This allows for double digit (in a good year for the market) gains with 150% quite easily. So 6.38% is not the highest you can go by any stretch of the imagination. Also you must be unaware of the new indexing strategy that is uncapped (it just has a 1.5% spread). Now, take note that I said spread and not fee. If you have no gain, the 1.5% is not charged. You must have a gain.
3. Lastly, I believe the 10% he was talking about is pertaining to the 10% free withdraws that can be made after the first year.
That being said, I don’t think it is the best fit here. However, I hope people at least have the right information when they argue that fact. Allianz preferred products are pretty amazing people. The 360 makes more sense here. Maybe even 365i
LauderdaleBAUS
Expert
- 30
For deferral, even at 69 just for a year, you should take a look at the Allianz 360 FIA. On the preferred platform only like the 222 but its payout % is higher. 69 year old would start at 5.9% lifetime income and go up by .49% every year deferred. Caps are not bad also, had a few clients do between 12-14% last year.
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You recommend lifetime income riders for people with a life expectancy of 10 years or less?
