Client Makeover: Structured Settlement Meets Guaranteed Income

Client Makeover: Structured Settlement Meets Guaranteed Income

Jeff and Mary are 76 and 73 respectively. Like most retirees, when they retired in 1998, they parked $600,000 in bank CDs at 5% and used the $30,000 of annual interest for income to supplement their social security.  As their CDs mature, they cannot replace this yield safely.

Here Is What We Did:


Our primary goal is safe income.  Banks, which are federally regulated, offer FDIC while insurance companies, which are state regulated, offer State Guarantee protection.  Both offer protection of $250,000.  Utilizing the Split Annuity Concept, we purchased a $225,000 Structured Settlement paid by John Hancock with an interest rate of 6% and paying $30,000 per year, guaranteed for 10 years.  We also positioned $223,000 in a deferred Fixed / Indexed Annuity with the intention of turning on the income rider after 10 years.  This particular Fixed Annuity offers an 8% premium bonus and a 7% annual compound to the Income Accumulation Value.  In 10 years, when we trigger the income rider, Jeff and Mary will receive $30,000 per year, guaranteed for life.  (This annuity also has the added benefit of a Home Healthcare Doubler which means that should Jeff or Mary need Chronic Illness care, the annual income will be doubled to $60,000 for a maximum of 5 years.)



We recreated their income of $30,000 per year using only $448,000!!

The remaining $152,000 was positioned for inflation protection.

Call us today for a personalized illustration with detailed explanation.

Toll Free (800)325-8907


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