Sub: Need Some Quick advice: Midland Retire X-Cel Option (6% for Life): Linked with midland fixed income annuities
I am new to this forum. I am 43 years old (Not that young to post here though
) and planning for my retirement. I am looking to build a conservative nest egg of the best possible guaranteed income starting from the age of 63. I have been advised about the product given the subject with the following calculations
• Invest Start 100,000 USD receive 10,000USD (10%) bonus
• Invest 2000 every month from there on for about 20 years in total. Earn the 10% bonus on the incremental value every year for 7 years from the starting year.
• Following a retirement table aim to to hit the annual lifetime payment amount (LPA) of 56,000 USD per annum. This is the arrived at using the following table
o Age 63 (20 years from now)
o GMWB (Guaranteed Minimum Withdrawal Benefit) Value – 1.25 Million USD
o This is arrived at including a bonus credit percentage of 6%
o This provides me a LPP (Lifetime payment percentage) of 4.5% per year which in value is about 56,000 USD per year
o I do understand that the values go up if I try to push my withdrawal to later years but at this point I am keeping this as my target to compare different options/products.
o I also understand that The GMWB Value is used only in determining your future income benefits under the Rider. This value is the total value on which my income payments are based and is not available for withdrawal.
o I am assuming though that I will get to see that actual Accumulation Value under my base annuity Contract which I should be choosing. ( I have some questions on this too)
• Now let me list down some of my questions
o Any advice/inputs on Midland as company, fund and how they manage it.. Are there any specific risks with Midland?
o Any comparisons or products that I should be looking at. (I read a lot about some Vanguard products, but anything specific matching to this will be of help)
o Are there better / strong products which provide better than 6% bonus credit for every year that I delay taking this income, better than 10% investment bonus for 7 years and/or better LPP percentages.
o Now coming to the accumulation value and annuity contract which needs to be chosen. (Linked with Retire X-cel) Here is where I am a bit confused. Currently I am recommended MNL retirevantage, annual point to point method (APP index CAP rate only) linked to S&P 500 with Retire X-cel provides a percentage of 4.15%. As I see other products within Midland called “Midland Innovator choice series which takes annual Point to Point to 7.5% Cap (linked with S&P 500) 10 year option and 6% odd for a 14 year option) and then there are “Midland Prosperity choice series” which shows even higher numbers. APP (Annual Point to Point) percentage at 25% linked to S&P 500.
Thanks and would appreciate any inputs around this.