In this episode, The Annuity Man and Steve Parrish discuss:
What are QLACs?
Transferring longevity risks
Creating a secure income floor in retirement
How annuities are priced
Key Takeaways:
QLACs (Qualified Longevity Annuity Contracts) are a pro-consumer annuity product that allows transferring longevity risk by using IRA assets for lifetime income guarantees via insurance companies.
Longevity risks require pooling mortality credits via longevity annuities from highly-rated carriers to ensure lifelong income.
QLACs provide a secure income floor in "chapter two" (retirement), avoiding RMDs (Required Minimum Distributions) and offering no fees. Annuities are better for longevity risk pooling and income than the flawed 4% withdrawal rule.
Annuities are primarily priced based on life expectancy, interest rates play a secondary role in that computation.
"Older you is not going to be the same as the younger you. Take my word for it. You want to have peace of mind. You're not going to want to have to call your broker every month when the economy is going crazy. You want to play with your grandkids, go golfing, whatever, and to know that you've locked in some income." — Steve Parrish
Connect with Steve Parrish:
Blog posts: https://www.forbes.com/sites/steveparrish/?sh=61590d633079
Connect with The Annuity Man:
Website: http://theannuityman.com/
Email: Stan@TheAnnuityMan.com
Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work
YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g
Get a Quote Today: https://www.stantheannuityman.com/annuity-calculator!