If an investment producer wants to sell a client a bond to ensure income what benefit would a SPIA be?
Total Comments: 1
Posted: Thu Jun 10, 2010 02:34 am Post Subject:
Depending on the rates of the SPIA, a better payout of guaranteed income.
The SPIA will generate income for either a period certain or the insured's life. A bond will always have a maturity date at which the guaranteed payments will end and current rates will be used to determine a new income stream.
If the funds are non qualified the annuity will use the exlusion ratio in the income payout, which will decrease the taxability of the income.
Posted: Thu Jun 10, 2010 02:34 am Post Subject:
Depending on the rates of the SPIA, a better payout of guaranteed income.
The SPIA will generate income for either a period certain or the insured's life. A bond will always have a maturity date at which the guaranteed payments will end and current rates will be used to determine a new income stream.
If the funds are non qualified the annuity will use the exlusion ratio in the income payout, which will decrease the taxability of the income.
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