Think of the many ways to say, “I love you” around Valentine’s Day.
There’s candy, roses and, for the person you plan to spend the rest of your life with, a lifetime of income.
Even I might have questioned the romance of this idea but I recently spoke with a client whose interest in deferred income annuities, specifically a QLAC, stems from his deep love and concern for his wife, who happens to be much younger than he is.
He is 73 and retired. She is 60 and beginning to put in place the process for her own retirement at 65. Both have a life expectancy between 85 and 90. But because he’s much closer to that age, the actuarial tables have her living about 10 more years after he passes away, and of course she could live much longer, too.
So his thinking was that when she reaches 85, he’d likely have passed away and he wanted income from a QLAC to start at that age. More