Aug 11
Regular readers know how I feel about variable annuities, but have little issue with the immediate annuity. Now, one issue that would hit us if you wished to put an immediate annuity inside an IRA is the calculation of RMDs and taking RMDs that may exceed the cash available within the IRA.
IRS Regulation section 1.401 (a) (9)-6 offers a solution.
If an immediate annuity is qualified and based on a payout scheme that is not intended to exceed your life expectancy the annual payout satisfies the RMD requirement even if it is less than would otherwise
be required. Perhaps a bit of an obscure issue, but one you may run into at retirement.
Joe
written by JOE
\\ tags: annuity, immediate annuity, IRA, irs, irs regulation, Retirement, RMD, variable annuities
Aug 01
Well, it’s been a month since my “Suze on Variable Annuities” post which sparked some heated debate. So much so, that I decided to take a look at a newer product, the Fidelity Growth & Guaranteed Income Annuity and analyze it in a feature article titled “Another Look at Variable Annuities” on my main web page.
I must say, I find the process interesting. I’ve been a ’spreadsheet guy’ for some time and enjoy playing with the numbers. Please read the article and comment here, if you wish. The Fidelity link above should download a PDF of a brochure for the product I analyzed. If it doesn’t, please advise of the broken link.
Joe
written by JOE
\\ tags: annuity, fidelity, income, interest, spreadsheet, suze, variable annuities
Nov 19
If you have any dependents, or debts that someone has cosigned on your behalf, you should consider a term policy. I believe that “no dependents, no need for life insurance” is valid for most people. One exception that may apply (I’m not fully convinced) is when the individual is likely to have the need for insurance at some point in the future, e.g. they have a strong chance of getting married and wanting children. It’s easier to buy insurance at a younger age and there’s always the chance that one becomes uninsurable just at the point when the need arises. I believe that there’s a much greater need for disability insurance. The numbers show far more people become disabled before retirement age than dying. Something to consider.
JOE
written by JOE
\\ tags: annuity, Finance, insurance, tax
