72-year-old Woman Pension Rollover

Case Study #2

 
This Case Study involves a 72-year-old female client. She was a existing client at the time when we sat down and reviewed here 403B Pension Plan account which was still being managed by the custodian and investment company she had with her prior employer before retiring. She indicated to me that she was making on average a 8% annual rate of return. When I questioned her on how she new this she told me that her investment adviser told her this. I glanced at the numbers. I asked her if I could take the last quarter of the last 5 years and due a total analysis. She replied go ahead.

So this is what we discovered the actual year end total returns to actually be:

  2011     2.20% return
  2012     4.75% return
  2013     8.25% return
  2014    -11.5% return
  2015     2.29% return

The actual Average Annual rate of return over the five year period was only 1.2%

Now to compliment this Case Study scenario, this client did a direct transfer of her existing 403B account into a qualified annuity with a top rated insurance company to avoid any taxation on the transfer. Her initial transfer amount was $111,592.63 and she received a bonus from the company of 5%, so here actual value of the account started with $117,172.26.

There is More!

  • She has the upside potential to earn from 2%- 8% in any given year.
  • She will never share in any market down turns. She cannot lose money and the bare minimum interest rate in her fixed account is currently at 2%
  • She can take up to 10% of the total account value in any given year free of penalty and or withdrawal charge.
  • She has a Nursing Home Waiver Endorsement at No Extra Charge
  • She has a Terminal Illness Waiver Endorsement at No Extra Charge
  • She can at any time elect a Guaranteed Income for the rest of her life. This income she CANNOT OUTLIVE!

This is what we mean when we say Greco Brokerage Shopping Products and Price for Our Clients!

 

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