Always Keep Your Hands Up

Always Keep Your Hands Up was written out of a thirty-year career long frustration over the lack of detailed immediate annuity information and age old misunderstandings about what these very special annuities are and can accomplish. Up until now, there hasn’t been a single in-depth published work that exclusively covered this very important insurance for consumer edification.

Single premium immediate annuity (SPIA) contracts share a special place in our inventory of financial products because they protect the most fragile elements of society at critical times when they maybe under the greatest financial distress. If you get into a personal jam that leads to a real financial jam, the SPIA’s property value will soar immensely. Long after your other assets have fallen away the SPIA will be the “last man standing”. However, like other matters of insurance, you need to have it before you need it. SPIA purchases need to be made in “good times”. If you attempt to make a purchase after a loss of capacity of either will, mental acumen or financial resources then, it will invariable be too late.

Always Keep Your Hands Up demonstrates how you can avoid financial loss and reap tax benefits with immediate annuities which are very elegant and simple financial arrangements.  If you look at all the ways there are to lose money in volatile financial markets alone then mix in charlatans such as Allen Stanford, “The Black Knight” who bilked 20,000 investors out over $7 billion in fraudulent bank certificate of deposits (CDs) or Nicholas Cosmo who sent 4,000 investors to the depths after his company Agape world, Inc. collapsed under the weight of phony real estate bridge loans or the Grand Daddy, Bernie Madoff who ruined some of the most sophisticated investors of our day, you begin to realize how vulnerable we all are to loss.

But then, in addition to all the above, if you also consider possible business failures, casualty losses, marriage collapses, bankruptcies, unreimbursed medical expense, family and health crises, etc. , you really start to understand that the possibility of going broke at some point of time in your life is not as farfetched as you might think. There are just tremendous amounts of ways for people to lose money and these ways are not all financial market related. After a substantial or even total losses, for younger individuals mortality pooled annuity contracts provide a basis upon which to rebuild and for older individuals, these contracts prevents them from becoming completely dispossessed when their time has run out.

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Additional Articles by the Author

Financial Planning – Impaired risk annuities used with investment portfolios 1998
Senior Market Advisor – Impaired risk annuity market 2001
Benefits Quarterly – Impaired risk annuities in qualified retirement plans 2002


White Papers by the Author Available

What is a Temporary Life Immediate Annuity, Anyway? – 2005
Everything you would want to know about a temporary life annuity! This paper covers brokerage uses such as; serial purchases, combination purchases, and income tax calculations, pricing concepts, mortality discounting, and impaired risk underwriting.

In The Alphabet Soup of SPIAs, RMDs and MDIBs – 2006
Learn how IRS required minimum distribution (RMD) rules affect immediate annuity contracts. These rules impact contracts with “incidental benefits” such as joint and survivor annuitants, period certain and cost of living adjustments (COLAs) features. This paper also covers penalty calculations for non-compliant contracts and possible fixes.

Oh No! DIAS & SPIAs in Marital Property Estates – 2011
Individuals who hold these annuities and their attorneys will be interested in this paper regarding the impacts of divorce on these contracts. How marital interest is determined, how contracts may be valued and possibly divided in the light of irrevocable contracts and their features. Also addressed are; special risks of bifurcated divorce actions, death and incapacity of ex-spouses, and the QDRO and DRO process.



Protecting Assets Through Insurance and Annuities 2004
Present and Future Prospects for Impaired Risk Annuities 2005
The American Middle Class Under Stress 2011
Income Annuities Improve Portfolio Outcome in Retirement 2012


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