I'm glad you enjoyed the educational video on guaranteed income annuities. Not a huge fan of whole life insurance, but it has it's place along with all of the other tools in the financial world. I'll be sure to put together another educational video on the topic for you in the future.
There seem to be a lot of important factors that aren’t being taken into account in this assessment? 1. The growth assumptions (in the first 2 examples) assumes no additional money is being invested during that 10 year period. 2. Social security isn’t be considered, which would likely reduce the needed $90k/year once they start collecting it. 3. Is the annuity being sold to this couple inflation adjusted because $90k at age 65 will have less buying power at 85 and even less at 95 if they live that long. 4. Do they have heirs that they’d like to inherent any remaining assets upon their death and does the annuity include an inheritance component? If you include these 4 factors in your analysis, would an annuity still be the best option for this couple?
All factors considered it was the best option for them, although this is not a video designed to walk you through how to develop a comprehensive financial plan, but to illustrate a concept. Also, keep in mind that the best option for any given personal financial planning situation is just that, personal. 1. Assuming additional investments wouldn't be an apples to apples comparison. 2. Social Security is irrelevant to the concept being illustrated. 3. It is not inflation adjusted, but will produce significantly more income than the 4% rule and the average retiree will not be impacted by inflation like your average worker i.e. The Retirement Spending Smile 4. Remaining unspent annuity cash value would still pass onto heirs with gains less withdrawals, but if their priority was legacy they probably wouldn't have purchased a guaranteed income annuity.
This was a cleverly masked annuity marketing video. Surprised he didnt recommend a whole life insurance policy to top it off.
I'm glad you enjoyed the educational video on guaranteed income annuities. Not a huge fan of whole life insurance, but it has it's place along with all of the other tools in the financial world. I'll be sure to put together another educational video on the topic for you in the future.
There seem to be a lot of important factors that aren’t being taken into account in this assessment?
1. The growth assumptions (in the first 2 examples) assumes no additional money is being invested during that 10 year period.
2. Social security isn’t be considered, which would likely reduce the needed $90k/year once they start collecting it.
3. Is the annuity being sold to this couple inflation adjusted because $90k at age 65 will have less buying power at 85 and even less at 95 if they live that long.
4. Do they have heirs that they’d like to inherent any remaining assets upon their death and does the annuity include an inheritance component?
If you include these 4 factors in your analysis, would an annuity still be the best option for this couple?
All factors considered it was the best option for them, although this is not a video designed to walk you through how to develop a comprehensive financial plan, but to illustrate a concept. Also, keep in mind that the best option for any given personal financial planning situation is just that, personal. 1. Assuming additional investments wouldn't be an apples to apples comparison. 2. Social Security is irrelevant to the concept being illustrated. 3. It is not inflation adjusted, but will produce significantly more income than the 4% rule and the average retiree will not be impacted by inflation like your average worker i.e. The Retirement Spending Smile 4. Remaining unspent annuity cash value would still pass onto heirs with gains less withdrawals, but if their priority was legacy they probably wouldn't have purchased a guaranteed income annuity.
😂😂😂