Reply to Annuity

Forum Index » Money and Finances

Reply to "Annuity"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]If it’s a savings vehicle to defer taxes instead of one to have an income stream is it a good idea?[/quote]

This is an it depends question.  I purchased one through vanguard in the early 1990s invested in the S and P 500.  (Vanguard no longer offers this and my annuity was transferred by them to an insurance company).  It is kind of like an IRA in that as you withdraw funds they are treated like taxable income.

From an estate perspective it is kind of worse, because, as far as I have been able to discern, heirs must take out the funds in five years as taxable income vs. ten years for an IRA.  On the upside, the annuity is not subject to RMDs.

These variable annuity products have changed a lot since the 1990s.  I understand that for some of them you can combine long-term care insurance, for example. Commissions and fees will definitely be very important in any purchase decision.

Looking back, I wish I had just plunked the money into an index fund in a Vanguard brokerage account instead.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics