Ash Joins Integrity Marketing Group: Read more about our historic partnership!

Using Multiple SPIAs to Create a Legacy

Brendon Kelly   |   May 2022   |   0-minute read

The Story

Many clients have multiple grandchildren and they want to leave a legacy for each one.

The Problem

Ray wants his grandchildren to remember him long after he has passed away. Ray wants to create an annual income stream on their birthday every year.

Client Profile

  • Ray is 80 years old
  • Ray has four grandchildren ages 10, 12, 16 and 18
  • Available assets of $200,000 to fund a legacy for his children

How it Works

Ray purchases four joint-life single premium immediate annuity (SPIA) contracts for $50,000 each. For each contract, Ray is a joint owner and one of his grandchildren is a joint owner. At Ray’s death, the income stream continues to the grandchildren for their lifetimes.

Why SPIA?

Ray has created a legacy for each grandchild and set up the funds to be deposited from the annuity into the grandchild’s bank account on their birthdays. Ray has also included a 3% COLA increase on the annual payments.

The Result

Ray continues his legacy with a birthday present for each grandchild for the rest of their lives. The average annual starting payment per child is:

  • Year 1: $683
  • Year 20: $1,198.38
  • Year 40 $2,164.41

Brendon-Kelly-Ash-Brokerage-Retirement
About the Author

Retirement is one of the most important financial events in a person’s life. As SVP, Retirement, Brendon Kelley facilitates our team to make planning for retirement as straightforward as possible. From having the initial conversation to handling licensing and submitting applications, Brendon’s committed to keeping the annuity process running smoothly.