As SC said, IMO
too, much too young to lock in rates with an annuity. If you really break down most Annuities you'll find that the IRR is likely to be no more that 3%. Remember there is a significant portion of an Annuity that is merely the return of premium. 45, IMO
is much too young for that.
Inflation risk is too high given the time horizon of the insured. He's likely to live much longer than he expects. Be smart and buy some low cost ETF's or something like that. And spread the assets around 1) Large Cap, 2) Small Cap, 3) Value ETF, 4) Dividend Growth 4) International Ex-US, 5) Total World.
And keep buying more on dips of 20% or more. Then when he's 70 he can roll that into Annuities, Apartment Buildings, Self-Storage or Manufactured Home Communities or something that will maintain his income for life
And fees will kill your returns over the long term when you turn you money over to someone else. Be cost conscious.
Speaking of Real Estate I'm a huge believer in it for my younger clients and for my personal portfolio too. Many many people have become very wealthy buying RE. Make sure it Cash Flows then you don't care if market goes up or down. When it Cash Flows you're not worried about timing the RE market. If you don't panic, over time Inflation will always drive the price of the Asset back up
And with all the Fractional Ownership (Sites, Companies, Start-ups) it's very easy for the little guy to get in the big game with a small ante and get 7-12% returns on short duration notes or deals. Then you get the Cap Gains kicker when they blow out of the deal too. Think about it.
If he's Accredited he can get more like 12-18% returns with short duration, less than 12-18 months. If that's the case and you want to know more you can PM me.
Originally Posted by entrep1776
Monthly payout for 45 yr/old male that wants to make one time payment of $10,000 annuity that pays for rest of my life & starts at age 70?
I'm working on my license. So, I'd like to sell to myself.
Any risk insurance company goes out of business?
Or Inflation risk?
Any other advice appreciated.