- 3,863
What 6% yield "investment" is secured by the FDIC?
Can I Purchase a Joint Annuity with Pre-Tax Dollars?
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- #12
- 15,041
There are income riders on variable and indexed annuities where your payment will not change.
I'm not in PA, so I have no interest in your business. But, before you shut the door on something, you should at least understand it first.
- 10,363
I would agree with this in full. Dont discount something until you know all the facts about it. Variable annuities and Indexed annuities have come a long way recently & have some excellent income options available.
Also, you could very easily receive a 6% return these days with a diversified bond portfolio.
Look at well managed bond funds instead of just individual companies, many of these have consistently returned well over 6% for the past 10 years. And with a bond fund, you are not affected as much by one company going under.
If you go the SPIA route, I would not suggest locking up all of your money with it. You still most likely need some liquidity, especially at your age.
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I think bonds are heading for trouble over the next several years.
On SPIAs, the return is typically 2% and most notices I'm getting these days is making it look more like 1.5%.
That return, once the contract is signed, will never improve.
The only good thing about a SPIA is you know exactly what is going to happen. Lifetime income guaranteed is nice, sure 'nuff.
However, if you happen to believe inflation is going up, then a SPIA of xx dollars per month now could be nothing but lunch money down the road.
There are products available that will guarantee lifetime income, but will also allow that income to go up each year (but never down) if the market produces positive results in that year. That is definitely what I would be considering in your place.
On SPIAs, the return is typically 2% and most notices I'm getting these days is making it look more like 1.5%.
That return, once the contract is signed, will never improve.
The only good thing about a SPIA is you know exactly what is going to happen. Lifetime income guaranteed is nice, sure 'nuff.
However, if you happen to believe inflation is going up, then a SPIA of xx dollars per month now could be nothing but lunch money down the road.
There are products available that will guarantee lifetime income, but will also allow that income to go up each year (but never down) if the market produces positive results in that year. That is definitely what I would be considering in your place.
If you are looking for something that can hit 6% for one year and then plan on using SS to supplement income beginning the next year, there's a fixed annuity at Jackson National Life that might work here. It'll pay 6.2% in the first year, but that's part of a one year bonus rate; it drops to 2.45% (current rate) after that with a minimum guaranteed at 2% until year 11 when it bumps up 100 bps. This might work given the intention to use SS after this year, if I understand this correctly. You can free withdraw up to 10% so your 6% or less draw for income should be ok.
The one problem with the SPIA route is you are locking up that 100k for the entire length of the payment period, and based on current rates, you're likely buying into a long term locked up interest product near the bottom of available rates (read, 5 years from now, you may really regret that move).
Alternatively, you could choose a SPIA with a shorter period certain, say 5 or 10 years, but that means the entire 100k is going to become income over that period and you'll owe taxes on it.
As for your original question, the answer is some will allow it and some won't.
The one problem with the SPIA route is you are locking up that 100k for the entire length of the payment period, and based on current rates, you're likely buying into a long term locked up interest product near the bottom of available rates (read, 5 years from now, you may really regret that move).
Alternatively, you could choose a SPIA with a shorter period certain, say 5 or 10 years, but that means the entire 100k is going to become income over that period and you'll owe taxes on it.
As for your original question, the answer is some will allow it and some won't.
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- #17
- 15,041
Strange fellow.
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- #19
Hello Volagent,
Thank you for your final assessment of my posts.
I came here for advice.
Many said "don't do it" so I listened and invested elsewhere.
Your name suggests you are an insurance agent.
Your recent post suggests you are a hard-sell salesman.
I met a used car salesman like you once; he sold cheap cars.
You need to concentrate more on real-world sales.
Your writing demeanor does not serve you well in forums.
Maybe you should stop using that cheap LFG bait?
Do you also represent New York Life?
Keep your chin up!
Thank you for your final assessment of my posts.
I came here for advice.
Many said "don't do it" so I listened and invested elsewhere.
Your name suggests you are an insurance agent.
Your recent post suggests you are a hard-sell salesman.
I met a used car salesman like you once; he sold cheap cars.
You need to concentrate more on real-world sales.
Your writing demeanor does not serve you well in forums.
Maybe you should stop using that cheap LFG bait?
Do you also represent New York Life?
Keep your chin up!
- 15,041
Amazing how completely off base you are, but good luck with whatever you choose. You wanted options, and we gave you several. It appears you had already made up your mind and were opposed to any alternatives. But anyway, good luck with what you choose.
