Here's a Scenario I'm Curious How You Would Handle

todder · 08-27-2009, 09:56 AM

Just looking to generate some discussion on this scenario. I always like to see how "seasoned" agents look at things and find that your recommendations help me learn quite a bit. Ok here are some basics, hopefully its enough info to at least generate some conversation/ideas. Single female, age 62 has a mutual fund worth $86,000 (previously was $120,000). Wants to get this money out of the market. Is planning on working until age 66 (enjoys what the are doing and has no plans to stop, health permitting might actually work to 70). At which time they will start taking SS. They don't necessarily need the income from this money (no debt, no mortgage, very low expenses) and have talked about leaving it there indefinitely. But would like the option to have access to it if they need to. Just want to here what other agents would do and how they would approach this. I'm curious what other questions you would ask? What product and carrier would you recommend and why? Look forward to hearing what you guys think.

HarryRenard · 08-27-2009, 10:13 AM

Are the mf Q or NQ?
Any other liquid assets? Kind of hard to answer with limited financial information.

insuranceexec · 08-27-2009, 10:19 AM

Originally Posted by todder

Just looking to generate some discussion on this scenario. I always like to see how "seasoned" agents look at things and find that your recommendations help me learn quite a bit. Ok here are some basics, hopefully its enough info to at least generate some conversation/ideas. Single female, age 62 has a mutual fund worth $86,000 (previously was $120,000). Wants to get this money out of the market. Is planning on working until age 66 (enjoys what the are doing and has no plans to stop, health permitting might actually work to 70). At which time they will start taking SS. They don't necessarily need the income from this money (no debt, no mortgage, very low expenses) and have talked about leaving it there indefinitely. But would like the option to have access to it if they need to. Just want to here what other agents would do and how they would approach this. I'm curious what other questions you would ask? What product and carrier would you recommend and why? Look forward to hearing what you guys think.

Hopefully you are at least series 6 licensed, as it is required to discuss the liquidation and performance with your client.

Some additional questions to ask would be:

Why do you have this money?

How much other liquid money is available?

Are you concerned about market volatility?

If they do not know why they have this money help them understand why. Do they have grandchildren that they would like to leave the money to etc, etc.........

Once they have a reason for the money; they will become more concerned about the safety of that money.

InsureGuy5 · 08-27-2009, 10:59 AM

You might consider an indexed annuity account. Both Forethought and I believe Great American offer return of premium with no surrender penalties. Otherwise a 3-5 year fixed annuity would be find. They provide some decent liquidity.

annuityseller · 08-27-2009, 11:01 AM

DO a fact finder and ask the right feeling questions and call me in the morning!!!!!!!!

briko3 · 08-27-2009, 12:05 PM

Has she thought about what kind of nursing home she would want to go in to if she were to need it? Medicaid vs. private is a HUGE difference. If that's a worry of hers and she doesn't need the money (other than as a liquid source for, I'm assuming, peace of mind) why not put her in Lincoln's MoneyGuard. She would have access to the money at any time, it would have a nice death benefit to whatever bene she chooses and would provide a considerable amount of LTC funds to be used to pay for a "nice" nursing home.

todder · 08-28-2009, 01:43 PM

Harry - Yeah I know its tough to answer my question because there are always so many variables. We are talking NQ in this instance.

Exec - I am not securities licensed and did not suggest she sell. She is selling no matter what. She came to me wanting advice as to what to do with the proceeds. I'm pretty sure I haven't violated any rules. Let me know if you guys think I am incorrect in my interpretation of what giving securities advice would be. I'd be curious to here peoples thoughts on what some would consider grey area. By the way, good fact finding/probing questions you suggested.

I will have to review the Forethought, Great American, and Lincoln suggestions. All very good thoughts. Thanks again everyone for the great input. That's what I love about this forum. A lot of quality people willing to help out and share their expertise.

DavidD1 · 08-28-2009, 02:06 PM

Originally Posted by todder

Just looking to generate some discussion on this scenario. I always like to see how "seasoned" agents look at things and find that your recommendations help me learn quite a bit. Ok here are some basics, hopefully its enough info to at least generate some conversation/ideas. Single female, age 62 has a mutual fund worth $86,000 (previously was $120,000). Wants to get this money out of the market. Is planning on working until age 66 (enjoys what the are doing and has no plans to stop, health permitting might actually work to 70). At which time they will start taking SS. They don't necessarily need the income from this money (no debt, no mortgage, very low expenses) and have talked about leaving it there indefinitely. But would like the option to have access to it if they need to. Just want to here what other agents would do and how they would approach this. I'm curious what other questions you would ask? What product and carrier would you recommend and why? Look forward to hearing what you guys think.

interesting call dennis owens at 513-289-3897

padthaiforlunch · 08-31-2009, 05:42 PM

Who is Dennis Owens and why should anyone call him?

OP, Does her life change if she never saw this money again?

If client doesn't need it for income at this time, then my inclination would be:

A. 4 or 5-year MYGA
B. Longer MYGA with ROP

I am hesitant to put someone at the age, with only that much money into an FIA, unless there are other sources of income, or if they want an income benefit rider.

Can she live on SS at age 66?

Does she have any other money to handle emergencies, like replacing a furnace?

insuranceexec · 08-31-2009, 05:47 PM

Originally Posted by padthaiforlunch

Who is Dennis Owens and why should anyone call him?

OP, Does her life change if she never saw this money again?

If client doesn't need it for income at this time, then my inclination would be:

A. 4 or 5-year MYGA
B. Longer MYGA with ROP

I am hesitant to put someone at the age, with only that much money into an FIA, unless there are other sources of income, or if they want an income benefit rider.

Can she live on SS at age 66?

Does she have any other money to handle emergencies, like replacing a furnace?

Did you not get the memo?

Dennis Owens lives vicariously through other posters to pimp his services..........LOL

He may very well be the most interesting man in the world...........LOL

padthaiforlunch · 08-31-2009, 05:53 PM

From what I tell he spends his money on race horses:

www.lebanonraceway.com/condition_sheet/deer.pdf

Horse