Advice for a Case

[smokin goose]

I went on a cancer appointment last night and the conversation turned to retirement.

The guy is 55. He plans on retiring in 5 years and wants a steady flow of income. We started talking about annuities.

He has between 15k and 50k that he is interested in putting in an annuity. He is very conservative. No risky investments.

He's got 15k in a bank account drawing 0.25% interest. I don't know where the rest of his savings are.

He also said he'll have over 200k in his 401k by age 59 1/2.

He is single and doesn't have any kids if that makes a difference.

I explained to him that I'm just getting started in learning the ins and outs of annuities and would help him when I get more comfortable that I'm doing the right thing.

Any advice or suggestions?

 

[Josh Landis]

It sounds like the client is looking for the highest income payout available to him for retirement. If that is the case, and you are in KY, based on the above scenario...Forethought has a good product with a 25% bonus on income and 5% compounding for 10 years.

 

[nathan.lee]

I went on a cancer appointment last night and the conversation turned to retirement.

The guy is 55. He plans on retiring in 5 years and wants a steady flow of income. We started talking about annuities.

He has between 15k and 50k that he is interested in putting in an annuity. He is very conservative. No risky investments.

He's got 15k in a bank account drawing 0.25% interest. I don't know where the rest of his savings are.

He also said he'll have over 200k in his 401k by age 59 1/2.

He is single and doesn't have any kids if that makes a difference.

I explained to him that I'm just getting started in learning the ins and outs of annuities and would help him when I get more comfortable that I'm doing the right thing.

Any advice or suggestions?

How much income does he need in 5 yrs?

Assuming you use the entire $50K and the Forethought product that Josh mentioned then at age 60 your client would receive approximately $3,590/yr.

Now the approx. $200K becomes available so let's use that to generate the most income possible for him. If we use a SPIA at today's rates (I assume they will be different in 5 yrs.) to provide income then your client would receive approximately $12K more a yr.

So at age 60, he would have approx. $15,590 in guaranteed annual lifetime income.

Again, these are APPROXIMATED numbers.

Would that be enough to cover his costs? You mentioned a "cancer appointment." Does he have other insurance or liquid assets to cover the costs associated with cancer treatment?

Lot's of variables to work with here.

 

[smokin goose]

He said he needs at least 10k a year. Everything he has is paid off. However, that's not factoring in health insurance. That is his major concern until he is eligible for Medicare.

His interest level on the cancer product I presented was minimal.

 

[jacobtn]

This is the type of prospect that annuities are perfect for. If he put it in the bank he will not earn enough to draw any kind of decent return. If he invests it he could lose a chunk to the volatile market. Annuities are great for this individual, because you can generate an illustration that shows a good income of 4-5% for life, to the penny of what they will draw, with the word GUARANTEED on it.

most folks his age with qualified accts are more concerned with safety and guaranteed income, and less about full liquidity. Since pensions are fast becoming a dinosaur (the days of working your whole life for one company are basically over), most folks like the one you described are very interested in guaranteeing a good return that they can supplement their SS with. Nothing better than an annuity for that. I love Equitrust and their market 12 bonus right now for those scenarios. Great bonus, and high payout.

 

[smokin goose]

This is the type of prospect that annuities are perfect for. If he put it in the bank he will not earn enough to draw any kind of decent return. If he invests it he could lose a chunk to the volatile market. Annuities are great for this individual, because you can generate an illustration that shows a good income of 4-5% for life, to the penny of what they will draw, with the word GUARANTEED on it.

most folks his age with qualified accts are more concerned with safety and guaranteed income, and less about full liquidity. Since pensions are fast becoming a dinosaur (the days of working your whole life for one company are basically over), most folks like the one you described are very interested in guaranteeing a good return that they can supplement their SS with. Nothing better than an annuity for that. I love Equitrust and their market 12 bonus right now for those scenarios. Great bonus, and high payout.

I wish you were closer, Jacob. I partnered with someone local and we're gonna split my cases and she is gonna show me the ropes until I get comfortable in selling them on my own.

 

[Tahoe Ray]

I wish you were closer, Jacob. I partnered with someone local and we're gonna split my cases and she is gonna show me the ropes until I get comfortable in selling them on my own.

I really don't think that you need to have someone local. I'm sure that Jacob can provide you phone training and case design.

I work with agents all over the country as do many of the wholesalers in the annuity forum.

It won't hurt to have some direct training but positioning (knowing the best product for the right client) is normally more important.

If you can sell, everything else will fall into place.