Real World Annuity Examples

As we age, there are two issues we fear. One is maintaining good health. The other is running out of money in retirement or outliving our income. We cannot do much about good health other than the usual things we already know with proper diet and exercise. However, we can be of great assistance in overcoming the fear of running out of money. An Annuity promises to provide a guaranteed lifetime payment that cannot be outlived. Meet Bill.  Bill is age 62 and is looking… Read More »Bill – Annuity Solves Fear of Running Out of Money in Retirement

Russell is 60 years old,  retired, unmarried, and wants to travel the world to surf.  He has approximately $1.1 Million in retirement funds that were once in stocks.  However, Russell managed to liquidate his stocks before the 2008 crash and placed virtually all of his money in CDs.  Unfortunately, Russell has seen very little growth with his bank CDs and needs to be able to guarantee a lifetime income of at least $60,000/year. Solution for Russell Russell’s CDs are coming due at different intervals over… Read More »Russell – Solution for Guaranteed Lifetime Monthly Retirement Income

65-year-old Carl is retired.  55-year-old Suzy is still working but plans to retire in 10 years.  Currently, Carl has approximately $300,000 in a 401k from his previous employer.  Suzy has approximately $200k in her 401k and earns $65k annual income.  Carl receives $28,800 for social security + an additional $1,100/year for a pension.  Total current household annual income is $94,900.  They want their income to continue after Suzy retires in 10 years.  They also have great concerns about the money in Carl’s 401k as it… Read More »Carl and Suzy

61-year-old Calvin is retiring in 7 years.  He has $800,000 in mutual funds and has no pension.  Other income will be approximately $2600 from Social Security.  Calvin has concerns about the ups and downs of the stock market and wants to get out while the market is up. Calvin realizes that his gains in the market are only realized if he liquidates his positions into cash.  Since Calvin lives alone, he is also concerned who will care for him if he is sick or injured. … Read More »Calvin

One of the more interesting cases I had was with 82-year-old Sid. Ten years ago, using $200,000, Sid purchased an annuity for his caregiver, Rebecca age 50. To ensure Sid would have total control of the money, we arranged to have a Living Trust established making it the owner of the Annuity. Sid was the Trustee (owner) of the Living Trust Rebecca was the Successor Trustee of the Living Trust The Trust was the owner of the Annuity Rebecca was the Annuitant of the Annuity… Read More »Sid