Case study / recommendations?

rc26

Expert
33
74 m and 66 f in Genworth IRA Va.. cv/csv $144,800... high watermark income rider ~$206,000 .. pay out if activated 6%, ~12,300 single Life option .. currently only taking rmds, dont plan on drawing more while husband is alive

Clients concerns: market volatility, 3.75% in fees, only a single life income rider

Is there a fia with an income rider we could set up joint life that would accept this kind of divergence?

Or any other Thoughts\ comments appreciated
 
Not sure of any health situations. The immediate thing that came to my mind (if they don't need the income while he is alive) was - take the income and fund a life insurance policy.

At his demise, the spouse could use the proceeds to convert the IRA to a Roth IRA. It sounds like they've already earmarked that asset as a legacy asset.

Is drawing the income going to affect their tax situation?

Someone not needing the income tells me it's more of a topic of life insurance than investment/annuity products.
 
I thought of that as well, he does have some medical conditions I’m aware of so I did not go down that road too far but will revisit with more information
 
74 m and 66 f in Genworth IRA Va.. cv/csv $144,800... high watermark income rider ~$206,000 .. pay out if activated 6%, ~12,300 single Life option .. currently only taking rmds, dont plan on drawing more while husband is alive

Clients concerns: market volatility, 3.75% in fees, only a single life income rider

Is there a fia with an income rider we could set up joint life that would accept this kind of divergence?

Or any other Thoughts\ comments appreciated
I think you're way too far underwater for a company to accept a transfer to a new product with a lifetime income living benefit.

He might consider turning on income now and trying to get into Genworth's pocket before he dies. He could just save the after-tax proceeds in a bank account for the benefit of his wife if he doesn't need it.
 

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