SPIA Case Study

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Meet Hiroshi, a 65-year-old businessman living in Japan who has just sold his business for the equivalent of $2,000,000. He wants to:

  • Ensure he has a guaranteed retirement income stream
  • Provide higher guaranteed payments than other traditional investment products
  • Move money into US dollars

Hiroshi decides to put $1,000,000 into a SPIA. This product provides options to receive income for 10 years, 20 years or multiple lifetime options. Hiroshi selects a 20 year period certain that will provide him with a predictable income stream. If Hiroshi dies before the end of the 20 year period, his beneficiaries will receive the payments for the remainder of the term.

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