Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
Video Transcript: Hello everyone, I'm Steve Savant, syndicated financial columnist and host of the weekly online talk show Steve Savant's Money The Name of The Game. I'm answering questions from insurancelibrary.com, and today's question is: is an annuity guaranteed withdrawal benefit a good idea. Well remember, I always say, "What's the price tag?" Do you have to pay for that G.L.W.B. rider? If you do, then I have to look at it and say, "Is it paying for the cash account, or is it paying for the phantom account that they're basing their income on?" I need to look and price that because that could be anywhere between 100 to 125 bases points, so it could be expensive but you have to say, " Yes, but what am I getting in return?". Remember, the older you are when you take constructive receipt the higher the interest, but your timeline if it's shorter, you may just be getting you principle back. You need to look at this really hard. It could be a great play if it's very inexpensive and if it's priced at the cash account and not at the phantom account.
Well, that's our consumer question for today. If you have any questions submit them to www.insurancelibrary.com.
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Video Transcript: Hello everyone, I'm Steve Savant, syndicated financial columnist and host of the weekly online talk show Steve Savant's Money The Name of The Game. I'm answering questions from insurancelibrary.com, and today's question is: is an annuity guaranteed withdrawal benefit a good idea. Well remember, I always say, "What's the price tag?" Do you have to pay for that G.L.W.B. rider? If you do, then I have to look at it and say, "Is it paying for the cash account, or is it paying for the phantom account that they're basing their income on?" I need to look and price that because that could be anywhere between 100 to 125 bases points, so it could be expensive but you have to say, " Yes, but what am I getting in return?". Remember, the older you are when you take constructive receipt the higher the interest, but your timeline if it's shorter, you may just be getting you principle back. You need to look at this really hard. It could be a great play if it's very inexpensive and if it's priced at the cash account and not at the phantom account.
Well, that's our consumer question for today. If you have any questions submit them to www.insurancelibrary.com.