Best FIA Product for 55 Yo Retiring in 10 Yrs

[jrninmn]

Thanks to all for the great discussion! I did investigate the DIA option, and a DIA purchased at age 55 with distribution beginning at age 65 with a 10 year guarantee is currently paying around 9.5%/yr with MetLife. I would assume NYL is probably in that ballpark, but probably a little less given the quality of the insurer. So yes, that is definitely something to consider.

 

[Tahoe Ray]

Thanks to all for the great discussion! I did investigate the DIA option, and a DIA purchased at age 55 with distribution beginning at age 65 with a 10 year guarantee is currently paying around 9.5%/yr with MetLife. I would assume NYL is probably in that ballpark, but probably a little less given the quality of the insurer. So yes, that is definitely something to consider.

NY Life can beat Met on DIAs. Lincoln is where you'd want to go for pure max income with no other considerations, though. 11% on initial deposit deferring 10 years (no death benefits whatsoever).

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How much income does a DIA spit out for a 55 year old putting in 50k and deferring 10 years?

About 5500.

 

[jrninmn]

Great info, Tahoe Ray! That is looking like probably the best way to go, and with Lincoln, I could still sleep at night

 

[Freddie]

NY Life can beat Met on DIAs. Lincoln is where you'd want to go for pure max income with no other considerations, though. 11% on initial deposit deferring 10 years (no death benefits whatsoever).

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About 5500.

Lincoln Financial (LFG)? Any idea how their SPIAs are? This sounds like a SPIA. thanks.

 

[Tahoe Ray]

Lincoln Financial (LFG)? Any idea how their SPIAs are? This sounds like a SPIA. thanks.

It is a DIA. Essentially a SPIA set to pay at some point in the future.

 

[jrninmn]

Due to my risk averse nature, I think I will probably go with the DIA as suggested by Tahoe, but I did receive an intriguing quote that did catch my eye...

The quote was for the TVA annuity from Security Benefit. The income rider credits 4%/yr + the earned interest credited for 10 years. Crediting method illustrated was the BNP 2yr with a 0.95 spread. Under the median index change scenario in the illustrations, the income distribution at age 65 was a fairly impressive $6217 on a $50K initial investment at age 55.

Of course, there is never a free lunch. The agent explained that Security Benefit has a less than stellar "50" COMDEX rating, but felt the company was in an "improving" financial position.

Since I am seeking lifetime income, the mediocre rating of Security Benefit has me very concerned, even though I know there is a state guarantee fund to supposedly back the contract in case of default. Any thoughts on this?