income for life model

Hi Everyone........

Does anyone know anything about.........

"Wealth2K" or "income for life model."........its an investment that involves annunites..........if I invest $390,000 (the insurance company) will pay me 1,841.00 a month for 25 years, after 25 years the $390,00 will still be there to invest again or if I die the money will go to my kids..........the insurance invests in 6 different investments........the first 3 being annunites.......they say the 1,841.00 is guaranteed but the $390,00 may lose value........ this sounds too good to be true.........what do you all think???

Also has anyone ever heard of Senoir Estate Advisors in York Pa.?

Thanks, Sunnydays333

Doesn't sound unrealistic. You're looking at a 5.7% rate of return on your income. Will you be able to get more than 390k back at the end of the 25 years if the funds do well, or is it just your money back at best? You should be able to get the returns of the funds plus this income.

Also, a downside to this product looks like a serious lack of inflation protection. 1841 a month now may be fine, but 25 years from now that same dollar amount will buy less than half what it does today.

So, not great, not terrible, but it really needs the potential to increase in value over time.

Dear Investor,

I have heard of similar plans and they are workable. An annuity guarantee is only as good as the company making it though. You could do almost as well by purchasing a 30 year United States Government Bond that is totally guaranteed; or a zero Coupon bond, if you did not need all the interest. Keep control of your money, you have control with bonds and other investments, where you do not have as much control with annuities. If you wish to further discuss this you can contact me at (248) 552-8843, or www.accuratetaxandfinancial.com.

I can shed some light on your question as my company developed the program. The Income for Life Model (IFLM) is a time-weighted asset allocation model that utilizes a strategic mix of both fixed products (fixed annuities, laddered CD or bonds) in combination with more aggressive investments (mutual funds, variable annuities or managed accounts) to deliver inflation-adjusted income with a high probability of attaining a series of returns that vary from 2% to 12% depending upon the duration held. The key to this concept is to divide the total investment into six five-year "segments", and to keep the more aggressive investments in place for long periods of time- 15, 20 and 25 years. This is to allow time for the market to deliver the generous returns it has proven capable of generating. Products used to fund IFLM vary and are chosen by financial advisors in recognition of their customers' needs.

Income begins at an annual effective rate of 5.66% with the objective of increasing the income at a 3% annual rate. If the rates of return targets are met (not guaranteed), that's exactly what will happen. Testing shows an 87% probability of targeted returns being realized.

There are many advantages to this approach to distributing retirement income, not the least of which is the psychological comfort that comes from having fixed vehicles provide guaranteed streams of income every five years. In addition, the 5.66% initial income rate is significantly higher than the 4% recommended withdrawal rate of SWPs.