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Old 03-04-2015, 01:13 PM   #1
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Annuity Payouts Annuity Payouts
What is the payout on your favorite annuity?
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Old 03-04-2015, 02:05 PM   #2
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What type of annuity and what type of payout?
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Old 03-04-2015, 02:09 PM   #3
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Single premium deferred age 65
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Old 03-04-2015, 02:14 PM   #4
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OK, my usual snide remark is deleted.

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Old 03-04-2015, 03:41 PM   #5
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Originally Posted by rmnj1968 View Post
Single premium deferred age 65
Still not enough info...

You are age 65? Or do you want income to start at age 65?

Im guessing you are a consumer? Tell us where you are and what you want to achieve and you will get much more relevant answers.
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Old 03-04-2015, 08:00 PM   #6
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Annuity Payouts
Sorry ... NJ ... Lump sum ... Start taking income at 70
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Old 03-04-2015, 09:09 PM   #7
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Originally Posted by BoomBoom68 View Post
Sorry ... NJ ... Lump sum ... Start taking income at 70
I would recommend putting it in a 5 year FA or IA. Then look at a SPIA when you hit 70.

We have historically low interest rates right now. It is extremely likely that you will create a higher income by waiting to lock in the payout rate.

Midland has a 2.75% 5 year Fixed Annuity.
Athene has a 5 year Index Annuity that has a 2.55% Spread with uncapped gains.

In 5 years payout rates will likely be much higher. Wait until then to lock them in.
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Old 03-04-2015, 09:50 PM   #8
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Originally Posted by scagnt83 View Post

I would recommend putting it in a 5 year FA or IA. Then look at a SPIA when you hit 70.

We have historically low interest rates right now. It is extremely likely that you will create a higher income by waiting to lock in the payout rate.

Midland has a 2.75% 5 year Fixed Annuity.
Athene has a 5 year Index Annuity that has a 2.55% Spread with uncapped gains.

In 5 years payout rates will likely be much higher. Wait until then to lock them in.
7 years ago I was selling variable annuities with living benefits...5% for life at 65 was the norm. Now we have FIAs at that level and higher...in a much lower rate environment.

SPIAs will certainly look better, but I can't see the FIA GMWB bands being significantly higher in the future.

(I can still appreciate and utilize your strategy though...)
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Old 03-05-2015, 07:37 AM   #9
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Originally Posted by Tahoe Ray View Post
7 years ago I was selling variable annuities with living benefits...5% for life at 65 was the norm. Now we have FIAs at that level and higher...in a much lower rate environment.

SPIAs will certainly look better, but I can't see the FIA GMWB bands being significantly higher in the future.

(I can still appreciate and utilize your strategy though...)

I dont think you can compare a VA payout to an IA. Different reserve requirements, etc.

Also, with an IA, 9 times out of 10 the GMWB Value will be higher than the Account Value. Thats not true for VAs. So I would think more VAs w/ Rider walk at the end of surrender vs. IAs w/ rider. I would be very surprised if the actuarial values are the same on the two. Look at today's rates, IAs are above VAs. So I dont think that is an apples to apples comparison... but I could certainly be wrong...


But look at IA Payout & RollUp Rates just 3 or 4 years ago...
Payouts were a good 1% higher or more. Rollups were higher/longer too. And the reductions happened while rates were dropping. So I cant imagine them not going back up as rates rise.... unless the market as a whole overextended themselves actuarialy...
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Old 03-05-2015, 10:42 AM   #10
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Ok ... Let me re-phrase ... Sorry guys ... I'm new to the annuity market so bear with me ... I was talking about what you/we get paid ... I have s friend of a friend of a friend who says he gets paid 9% on a Midland annuity ... My IMO has me at a 4.5% payout ... I guess my question is ... Is getting paid 9% on an annuity really out there?
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