36K Cash Value - SPWL?

[GreenSky]

Annuities for 80+ years olds pay low commissions for a reason. It's not encouraged and better put him in a way better position if he starts new surrender charges at that age.

Better off finding some younger seniors to sell annuities to.

What about an index annuity with an ROP from day one? If the money's in the bank he'd be giving up less than 1pt of interest for potential gains in the market.

I'm not certain that at his age it will be important to gain 1, 2, or even 10%. But if he's healthy a single premium index UL with ROP might work. At least the money gets paid to beneficiaries outside of escrow and tax free.

Rick

 

[scagnt83]

Annuities for 80+ years olds pay low commissions for a reason. It's not encouraged and better put him in a way better position if he starts new surrender charges at that age.

Better off finding some younger seniors to sell annuities to.

What about an index annuity with an ROP from day one? If the money's in the bank he'd be giving up less than 1pt of interest for potential gains in the market.

I'm not certain that at his age it will be important to gain 1, 2, or even 10%. But if he's healthy a single premium index UL with ROP might work. At least the money gets paid to beneficiaries outside of escrow and tax free.

Rick

I agree that ROP is a good option for older ages. But at the end of the day if it was not a suitable option the state and the carrier would not approve the product for sale at those ages.

Annuities pay lower for older ages because they have a shorter life expectancy, not because it is frowned upon. The carrier takes on a greater risk that the funds will not stay in force for the entire contract, so they offer a lower comp to help offset that.

You can get 2.75% right now with Midlands 5 Year MYGA. I think it issues up to age 90. Pays around 2.5% I think.

To me the most important thing at older ages is just keeping up with inflation. 2.75% is less than inflation, but it helps to preserve buying power better than half a percent like CDs are paying. But like with all things it all just depends on the situation and their needs. But when funds are getting 1% or less, it often makes sense to guarantee a higher yield if the 10% free withdrawals offer the liquidity they need. jmo


IMO, the WL should stay where it is at and the real opportunity is the 403B. Especially if it is getting under 2%.

 

[Glen Shelton]

I agree that ROP is a good option for older ages. But at the end of the day if it was not a suitable option the state and the carrier would not approve the product for sale at those ages. Annuities pay lower for older ages because they have a shorter life expectancy, not because it is frowned upon. The carrier takes on a greater risk that the funds will not stay in force for the entire contract, so they offer a lower comp to help offset that. You can get 2.75% right now with Midlands 5 Year MYGA. I think it issues up to age 90. Pays around 2.5% I think. To me the most important thing at older ages is just keeping up with inflation. 2.75% is less than inflation, but it helps to preserve buying power better than half a percent like CDs are paying. But like with all things it all just depends on the situation and their needs. But when funds are getting 1% or less, it often makes sense to guarantee a higher yield if the 10% free withdrawals offer the liquidity they need. jmo IMO, the WL should stay where it is at and the real opportunity is the 403B. Especially if it is getting under 2%.

The 403b is 100% invested in Bonds through fidelity. I believe it did just over 3% last year according to the statement I looked at.

 

[WinoBlues]

Next.

...................

 

[Thad.Sipple]

Ok put all of it into and annuity, sell him a whole life for whatever amount and withdraw the premium each month from the annuity.

 

[Glen Shelton]

Ok put all of it into and annuity, sell him a whole life for whatever amount and withdraw the premium each month from the annuity.

So like a 90K SPIA and set him up with a SIWL policy to match?

 

[scagnt83]

The 403b is 100% invested in Bonds through fidelity. I believe it did just over 3% last year according to the statement I looked at.

I wouldnt touch it then. Thats more than you will get from a MYGA right now.

 

[Thad.Sipple]

So like a 90K SPIA and set him up with a SIWL policy to match?

Heck I dunno I'm just throwing ideas out there.

Does he have 90k to put into and annuity?

 

[Glen Shelton]

Heck I dunno I'm just throwing ideas out there. Does he have 90k to put into and annuity?

Assuming I could roll the CV from the 10 pay WL and the 403b both into a SPIA, yeah he would have like 91K

 

[trevleffingwell]

I wouldn't touch this one; I think you're looking at the kids/beneficiaries suing you for abusing seniors when any part of this goes wrong. Surely you can find another prospect somewhere. Sorry.