Joint Single Premium Immediate Annuities

Lon · Post by **Lon** » Sun Jun 15, 2014 3:04 pm

Any seniors care to discuss SPIA?

TÃ½r · Post by **TÃ½r** » Mon Jun 16, 2014 10:03 am

I'm wary of any product which involves a management fee.

That may be both unwise and unfair but it's a long-standing aversion on my part amounting perhaps to an antipathy. I also distrust wealth managers to select products into my portfolio on the basis of my long-term financial well-being as opposed to their own short-term holiday plans.

Wealth management, in England, generates all the visceral reaction associated with second hand car dealers, private landlords and real-estate brokers.

Lon · Post by **Lon** » Mon Jun 16, 2014 10:30 am

This product must be marketed a bit differently in the UK. There are no fees or commissions taken from your principal amount on the majority of this kind annuity in the U.S.

Saint_ · Post by **Saint_** » Mon Jun 16, 2014 11:48 am

I'm a senior and I have no idea what you're talking about.

TÃ½r · Post by **TÃ½r** » Mon Jun 16, 2014 12:01 pm

Lon;1457741 wrote: This product must be marketed a bit differently in the UK. There are no fees or commissions taken from your principal amount on the majority of this kind annuity in the U.S.

The American public may well keep its more enterprising accountants in better check than we do, then. Here they get commissions from the fund operators for introducing new business which, I'm quite convinced, influences their choice when recommending where to invest pension lump sums or buying an annuity. The insurance market here is similarly incumbered.

Wandrin · Post by **Wandrin** » Mon Jun 16, 2014 2:20 pm

I have a long term care policy structured as an annuity. I paid in a hefty lump sum when I was in my 20s and locked in a guaranteed interest/appreciation rate that would seem outrageous these days. It has multiplied in value since then. I can use it for long term care or elect to draw annuity payments.

About the same time, I started my little one-person business and went through the hassle of organizing as a class-c corporation. I pay myself a relatively low salary and the corporation invests the rest. I can continue to draw a salary long after I stop taking in new contracts and the corporation pays for healthcare insurance.

Am I covered, or should I consider an additional annuity?

Lon · Post by **Lon** » Mon Jun 16, 2014 3:42 pm

Wandrin;1457795 wrote: I have a long term care policy structured as an annuity. I paid in a hefty lump sum when I was in my 20s and locked in a guaranteed interest/appreciation rate that would seem outrageous these days. It has multiplied in value since then. I can use it for long term care or elect to draw annuity payments.

About the same time, I started my little one-person business and went through the hassle of organizing as a class-c corporation. I pay myself a relatively low salary and the corporation invests the rest. I can continue to draw a salary long after I stop taking in new contracts and the corporation pays for healthcare insurance.

Am I covered, or should I consider an additional annuity?

That depends---- if you are set up to not out live your income and can remain independent I think you are OK.