Annuities that Are Most Liquid

[jmarkk1]

I have a client that's a farmer. (67 years old) His wife has FA that is now paying income. (Nothing really great)
Anyways...He never went with annuity because he fears money would be inaccessible if equipment breaks etc. All of his money is in bank. (Around $500k)
Have any of you ever been able to help someone that needs liquidity plus better growth than just sitting in bank?
What approach do I use to open discussion? What products?
He's in Ohio.

 

[Norwayguy]

I have a client that's a farmer. (67 years old) His wife has FA that is now paying income. (Nothing really great)
Anyways...He never went with annuity because he fears money would be inaccessible if equipment breaks etc. All of his money is in bank. (Around $500k)
Have any of you ever been able to help someone that needs liquidity plus better growth than just sitting in bank?
What approach do I use to open discussion? What products?
He's in Ohio.

Why does he think he has to do only one or the other. Second there are multiple fixed annuities that offer a ROP option meaning if he gives up the growth he can walk away with 100% of what he put in.

 

[jmarkk1]

His issue is that he sees an annuity more like a lock box. I'm mainly looking for ways/angles to consider them because of all the other risks they are open to like LTC, ETC
Plus, he doesn't plan on farming much longer.

 

[TheFactor]

What about a MYGA with a nice LTC rider on it? Also, how is his health? Does he have any life insurance using the old mortality rates that you could convert with a 1035 exchange? You could quite possibly lower his rate, include a LTC rider on the policy while increasing his DB.

I hope this helps

 

[Justin Bilyj]

Or find an annuity with an income benefit rider you can turn off and in whenever he wants.

 

[scagnt83]

His issue is that he sees an annuity more like a lock box. I'm mainly looking for ways/angles to consider them because of all the other risks they are open to like LTC, ETC
Plus, he doesn't plan on farming much longer.

I do not know of any 20% free withdrawal annuities in OH.

But many IAs allow for Loans to be taken out. NWL allows up to 60% of the Accumulation Value to be loaned out.

So if he had an emergency and needed funds for equipment he could access up to 60% of the funds at a 7% yearly interest rate.

 

[jmarkk1]

Has anyone on here ever worked with farmers like my client? I can understand the need to have access to funds for repairs, which makes the bank look great.
However, he needs to start thinking about the future and how those funds are to be utilized once he stops farming.
Ideas on how to get him to really start thinking?

 

[Stephen]

Just my take: Don't feel like you have to go for all $500k all at once. Stick to a simple fixed rate product, no fancy riders, no confusing indexes, and keep in mind who you are dealing with and his investing experience.

 

[scagnt83]

Has anyone on here ever worked with farmers like my client? I can understand the need to have access to funds for repairs, which makes the bank look great.
However, he needs to start thinking about the future and how those funds are to be utilized once he stops farming.
Ideas on how to get him to really start thinking?

Show him how much per year in earnings he has missed out on over past 5 years. Then show the next 5 and ask if he is ready to put his money to work. "You work hard each and every year... make your money do the same thing".

I also agree that you should not go for all of it. Go for half at most.

 

[DHK]

How about a SPWL?

Same taxation as an annuity... with a larger death benefit... and it's all liquid if needed.

Commission is about the same as an annuity too.