SPIA-Single Premium Immediate Annuity

Welcome to our latest Cardinal lesson where we talk about essential financial planning tools to secure a steady income stream during retirement. In today's video, Hans Scheil and Tom Griffith discuss the pivotal role of annuities and Social Security in retirement planning.

H E Scheil & Associates doing business as Cardinal Advisors holds an insurance license in all 50 states and DC. Listed below is the license # in each individual state. Alabama 675461, Alaska 100118081, Arizona 1800012348, Arkansas 100104794, California 0K32569, Colorado 464622, Connecticut 2463129, Delaware 1119857, DC 2887040, Florida L087124, Georgia 159539, Hawaii 445296, Idaho 507076, Illinois 100333675, Indiana 721739, Iowa. 1002056691, Kansas. 272705345, Kentucky 738674, Louisiana 614407, Maine AGN249408, Maryland 100048542, Massachusetts 2006645, Michigan 0104206, Minnesota 40411912, Mississippi 15016382, Missouri 8325733, Montana 100126008, Nebraska 100224332, Nevada 1007341, New Hampshire 2315847, New Jersey 1557889, New Mexico 1800010640, New York 1382342, North Carolina 1000092550, North Dakota 2000136230, Ohio 1028975, Oklahoma 100190853, Oregon 100237062, Pennsylvania 589318, Rhode Island 2309277, South Carolina 1907911784, South Dakota 10017719, Tennessee 2252224, Texas 1963111, Utah 513447, Vermont 1038574, Virginia 129027, Washington 864498, West Virginia 100107166, Wisconsin 100192273, Wyoming 275179

[Salveo-]

I purchased a SPIA using about 10% of my investable assets, period certain for 8 years to get me to Social Security at age 70. I did not go for lifetime payments as this reduced the monthly amount received and did not account for any adjustment for inflation. Reducing Sequence of Return Risk was a big factor for me. This helps me sleep better at night knowing that my base expenses are covered. I am not concerned with liquidity as the annuity represents a small percentage of my total. I can also be more aggressive with the rest of my portfolio as I will only use these funds for one time expenses or other discretionary purposes. I figured I had to live on something so getting a regular check without worrying about market conditions was the primary driver. This will also lower my future RMD's and the internal rate of return was slightly better anything I could do with CD's.

[Bigwilli]

A single premium immediate annuity (SPIA) for retirement income might seem appealing due to its guaranteed payments. However, it's crucial to weigh the potential drawbacks.

[BigPoppa-tz]

Its a product that has been around since the Roman era. Its solid

[mohamoudismail]

You guys have so many variations of income streams that I wonder why other investment Companies don't inform clients about the numerous options you offer.

[josephjuno]

I am 62 single male, dont need to leave a legacy. I have pension of $1800 p mo. A 5 yr SPIA would last until 67 so i can delay SS? My pension will not grow.

[Savannah-edrv]

I wish I had done this years ago and I wish that the offerings were better years ago. I have one financial advisor told me I could hand over $200, 000 and I would get $200 a month. I laughed and said that doesn't even buy groceries for a month. It's so hard to figure out all these things out and I think that's why a lot of people end up not having enough money in retirement

[fjk]

Another great video! I would love to know the tax liability that?

[myvenusheeler]

This is the second time I have watched this video and I have a question. If the couple or even a single person purchased the life annuity with a 20-year period certain Spia with an IRA, 401k, etc. and passed away in say year 8, how would the remaining 12 years of that be distributed due to the Secure act?? Would the payments continue to the heir for the next 12 years or would it be a cash disbursement??

[g.ajemian]

I would think the a myga for the period of time needed with a 10% withdrawal provision at the current rates would be a better option because you will have principal returned to you at the end of the term where as a SPIA Returns 0 at the end. Your thoughts?

[MarkInChicago]

What happens to the amount that was initially invested ($55013.20) at the end of the five-year period? Does that principal get returned to the investor?

[mohamoudismail]

Question:
I retired March, 1/2023; I am 76yrs. I have a 3:57 ($80k) employer sponsored traditional ira with TIAA. It has to come out in 9 years. Does it qualify for a Life Annuity with 10 or 20 year survivor benefits?
Thank you.
Ismail