Guaranteed Income - A License to Spend
David Blanchett and Michael Finke's research affirms that people will spend significantly more in retirement if they have annuitized income. The reason? Retirees don't have to worry about their biggest fear: running out of money. You can read their full whitepaper HERE
Many advisors we work with have been taking advantage of the strong guarantees insurance companies are offering. Clients are ecstatic they'll be able to live their dream retirement and stay retired without having to worry about market returns.
Case Study
A 60 year old can deposit $100k and start receiving over $11,000 of annual income at age 65 from several A rated insurance companies. To put that into perspective, the same client would have to earn an average net return of 6.94% in an investment to generate $11,000 of income and have that money last until their age 90. If they live to age 95, that number jumps to 7.36%.
In addition to longevity protection, incorporating guaranteed income into a portfolio helps mitigate sequence of returns risk. This allows advisors to be more aggressive with the rest of a client's portfolio.
Spotlight Client Solution*
7.45% Immediate Payout at Age 65
North American's Benefit Solutions tops the charts for guaranteed income. A 65 year old can deposit $100k and start receiving a $7,450 paycheck each year.
6.30% IRR at age 90
$193,700 total income at age 90
A+ rated Company
Notable Client Solutions**
40% Death Benefit Bonus
Allianz's 222 is an excellent option for older clients who can't qualify for life insurance and want to pass an enhanced sum of money to beneficiaries.
40% initial death benefit bonus
150% interest multiplier on the DB account
5 year DB payout to help spread out taxes
A+ rated carrier
5.70% Fixed Rate
5.70% Simple Interest for 7 years.
Ibexis is the go-to for clients who are RMD age or want to withdraw interest annually.
0.45% higher than the next A rated carrier.
$3,150 extra interest withdrawn while maintaining principal on a $100k deposit.
* Rates may be subject to premium banding. Products may not be available in all states.
** Replacement must be suitable and provide the client with more guaranteed income.