Somewhere, up in heaven perhaps, her dead husband is laughing at his good fortune.

At 71 she will have to reverse mortgage her house and become a walmart greeter.  Some people can't be helped.  Just curious, but what is her magical solution to her problem?  5% CD's?

[quote=blarmston]

I picture her being 32... With dazzling long blond hair and a runners physique... She drives a Lexus Hybrid and exhibits crazy sexy cool...

Am I close Bunny?

[/quote]

Well, you are /were correct (except auburn hair) at that age.... which was a while ago.   No Lexus, but the the rest is right according to my husband.    I'm the same age as the lady in the example which is why I made that hypothetical remark to her.  This is actually a big plus for me (age) in dealing with women like the example.  Wealthy widows, or divorcees trust me more than they ever would a man or especially a younger man. 

I've made no secret on this board that I've been in this business for awhile.  Most people guess my age at least 10 years younger.  Must be that dewy Welsh complexion.

Back to the lady.  Some people just can't be helped. 

She's probably afraid of the stock market and feels inadequate when confronted with financial jargon.  I would talk to her in generalities and things that affect her life experiences and leave the financial details on the side for now.  Women like her (I'm assuming she never had control of the finances?) need to talk about their goals and feelings first: before even discussing percentages, inflation and other economic concepts.  If she just lost her husband, she is probably also afraid.

Ask her how much she paid for milk, beef or a loaf of bread in 1985? How much do those things cost now.  Put inflation in real terms.  

Does she need 30,000 or is that just some figure she picked out of thin air?  I would sit down with her an prepare a detailed budget first and discuss the items on the budget as to whether they are realistic or maybe inflated.  

I also explain to my clients that if they insist on getting the return that she demands from her investments that she will have to accept more risk. 

How about a split annuity concept?

Ahhh. Bunny- what a woman…

[quote=anabuhabkuss]

the word,

that is interesting. talk to me about how much income your clients are pulling out? what withdrawal options are available?

I'm in the same boat as you. I came across this lady, 54 yrs old, widowed.

She: "I want to take income and be able to recoup all my money back if the market tanks"

Lines like these make me want to move to Iran, commit a minor crime and get hanged for it.

[/quote]

Try a Split Annuity for this situation.  One company (has a dead president's name coupled with the word "national") Has a great illustration that shows the two annuities working together in the split.  It is two annuities coupled together, one an immediate for tax favored monthly income, and the second a fixed annuity for tax deffered growth.  In essence, the client will put in their initial investment, receive monthly income for 7 years and then in day one, year 8 receive their initial premium back.

One I just did the client put 60k, receives ~$200 per month, saves in taxes (only $235 of the yearly income is taxable).

Pretty cool and much easier for bank clients to wrap their heads around than an EIA.

Argh, sorry dust b, I posted w/o reading your post....

[quote=anabuhabkuss][quote=bluestars80][quote=anabuhabkuss]

the word,

that is interesting. talk to me about how much income your clients are pulling out? what withdrawal options are available?

I'm in the same boat as you. I came across this lady, 54 yrs old, widowed.

She: "I want to take income and be able to recoup all my money back if the market tanks"

Lines like these make me want to move to Iran, commit a minor crime and get hanged for it.[/quote]

Sounds like 7 day put bonds or a money market account..........

She probably needs growth, but has been rolling CD's for 20 years............maybe it's time for an "inflation talk".........

[/quote]

Dude don't get me started.

This lady's husband, the bread winner, dies in March. She's 54, uneducated (but not necessarily dumb) and has 424000 to her name. She lives in this big house and wants (i kid you not) 30,000 of income. She currently has this money invested in a Fixed annuity.

I give her the inflation talk, show her how long $425k will lasts with her lifestyle, and she gives me that line i quoted earlier. i show her a VA and she looks at me like im crazy telling me "I know in 7 years the market will tank". Everytime I came back with her with a logical question she would just smile and shake her head at me like i was a loon.

I haven't spoken to her in a few weeks after chalking her up to be insane beyond belief. But I was curious if there were something out there that, somehow, fit what she wanted to buy.

[/quote]

How do you know the husband is going to die in March?

[quote=pretzelhead][quote=anabuhabkuss]

the word,

that is interesting. talk to me about how much income your clients are pulling out? what withdrawal options are available?

I'm in the same boat as you. I came across this lady, 54 yrs old, widowed.

She: "I want to take income and be able to recoup all my money back if the market tanks"

Lines like these make me want to move to Iran, commit a minor crime and get hanged for it.

[/quote]

Try a Split Annuity for this situation.  One company (has a dead president's name coupled with the word "national") Has a great illustration that shows the two annuities working together in the split.  It is two annuities coupled together, one an immediate for tax favored monthly income, and the second a fixed annuity for tax deffered growth.  In essence, the client will put in their initial investment, receive monthly income for 7 years and then in day one, year 8 receive their initial premium back.

One I just did the client put 60k, receives ~$200 per month, saves in taxes (only $235 of the yearly income is taxable).

Pretty cool and much easier for bank clients to wrap their heads around than an EIA.

[/quote]

Is it "Clinton National"?  Well......I can dream, can't I?

[quote=pretzelhead]

Argh, sorry dust b, I posted w/o reading your post....

[/quote]

Great minds think alike.

Are the immediate payout rates for a 54 year woman enough to make this strategy work given the amount of income needed.  About 2 months ago i was quoted about $900 per 100k for a 62 year old male.  That has to go down for a 54 year old woman. 

[quote=Dust Bunny][quote=blarmston]

I picture her being 32... With dazzling long blond hair and a runners physique... She drives a Lexus Hybrid and exhibits crazy sexy cool...

Am I close Bunny?

[/quote]

Well, you are /were correct (except auburn hair) at that age.... which was a while ago.   No Lexus, but the the rest is right according to my husband.    I'm the same age as the lady in the example which is why I made that hypothetical remark to her.  This is actually a big plus for me (age) in dealing with women like the example.  Wealthy widows, or divorcees trust me more than they ever would a man or especially a younger man. 

I've made no secret on this board that I've been in this business for awhile.  Most people guess my age at least 10 years younger.  Must be that dewy Welsh complexion.

[/quote]

I can't believe that I'm madly in love with a 54 year old stranger.

[quote=the word]Are the immediate payout rates for a 54 year woman enough to make this strategy work given the amount of income needed.  About 2 months ago i was quoted about $900 per 100k for a 62 year old male.  That has to go down for a 54 year old woman. [/quote]

Probably not if the amount of income that this lady says she wants is a real needed amount.   The shorter the immediate annuity, of course, the higher the pay out.  The chance you are taking is that her need for income isn't going to go up in the future.

I still think the best way to approach this is to sit down with her and go over a complete budget.  Her expenses and needs are not going to be as much with her husband out of the picture.....unless she goes for the boob lift and tummy tuck.  In that case her income needs may be short term until she can snag the next guy.   oops  did I say that?   She may be just guessing at how much income she needs.  In anycase, she will feel that you care more about her and her well being than in just making a sale.  Which of course is what you really want to do.