Part 3 of 3
A fixed-rate annuity guarantee period is ending
Compare the current carrier's renewal with new choices before a multi-year guarantee annuity period ends.
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1.
Send this for one client. The money is a 1035 exchange: old annuity into new.
Using Annuities Genius: my client's 5-year MYGA guarantee period ends next month. Her carrier offers a renewal rate of [x]%. She is 71, single, in Kansas, with $112,000 of non-qualified money. If she takes income, she wants it from 75. Compare four options: renewing at that rate, a new 3-year MYGA, a new 5-year MYGA and an indexed annuity with a lifetime income rider. Use carriers rated A- or better. Run new quotes as 1035 exchange money. Move funds by direct carrier-to-carrier exchange. Ask about the surrender-free window and state replacement forms. I decide.
Select the text and copy it.
If she takes cash first, gain may be taxable. Confirm the exchange and renewal steps. Then confirm replacement steps before moving funds.
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2.
Read the table. Each option needs its AM Best rating (insurer strength) and how it is sold.