nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
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- 4,872
I'm thinking of adding a TIAA Traditional Annuity to my retirement investments. Do you have an annuity, if so what, and how does it fit in with the rest of your investments?
see http://www.early-retirement.org/forums/f28/annuity-opinions-needed-39814.html
my immediate fixed annuity is for present day income, along with a modest survivor's pension, until my own deferred retirement pension kicks in in 6 years.
my real retirement portfolio is set for 100% reinvest all dividends & gains.
see http://www.early-retirement.org/forums/f28/annuity-opinions-needed-39814.html
my immediate fixed annuity is for present day income, along with a modest survivor's pension, until my own deferred retirement pension kicks in in 6 years.
my real retirement portfolio is set for 100% reinvest all dividends & gains.
added to clarify...please note that i own an immediate fixed annuity because it was my best option to be able to FIRE at 48 and was able to convert my TSP balance into a monthly paycheck without severe tax or early withdrawal penalties under the FERS and IRS 72(t) SEPP rules. this is a SPECIAL case.
I do not espouse annuities. every situation is different.
That's my plan too. $200k in the TIAA at 55 will give me $15k a year for life and along with $15k from rental income I have my basic living expenses covered even before SS and drawing on the rest of my investments that are in a 50/50 mix of index funds.
I inherited a variable annuity with John Hancock from my mother. At the time of her death there were still significant surrender charges so I just had the annuity reregistered in my name. I have it invested in several different small cap and international funds. Performance has been so-so. I would not have bought it for myself but I see no reason to cash out of it now.
I go back and forth whether to take part of the TSP withdrawals as an annuity.
I inherited a variable annuity with John Hancock from my mother. At the time of her death there were still significant surrender charges so I just had the annuity reregistered in my name. I have it invested in several different small cap and international funds. Performance has been so-so. I would not have bought it for myself but I see no reason to cash out of it now.
My father bought his children a VA. It was set up where it was not owned by him but by us. It was also set up to not be accessible until the oldest sibling reaches 59 1/2. It was set up with my sister having "control" and she supposedly will have to take the entire withdrawl against her income (she says) when the cash out date arrives in a couple of months. She is then to make disbursements to her siblings. I have no access to the account that I am aware of.There should NOT be any surrender charges to the beneficiary on an inherited annuity. You could have moved it anywhere you wanted, and probably still can.
My father bought his children a VA. It was set up where it was not owned by him but by us. It was also set up to not be accessible until the oldest sibling reaches 59 1/2. It was set up with my sister having "control" and she supposedly will have to take the entire withdrawl against her income (she says) when the cash out date arrives in a couple of months. She is then to make disbursements to her siblings. I have no access to the account that I am aware of.
I can't figure out why we can't each get separate checks with our own 1099 forms. My sister insists we can't.
Do you have any thoughts?
as a FERS (right? or are you CSRS?) retiree, is that allowed prior to ageI go back and forth whether to take part of the TSP withdrawals as an annuity.
as a FERS (right? or are you CSRS?)
As an early retiree (buyout for RIF), I could have elected all annuity or all actuarial payments or rollover to IRA some combination thereof, at retirement, as long as it involved committing all the money to a plan.retiree, is that allowed prior to age
59 1/2? i thought it was an all-or-nothing conversion.
but then again i resigned, not retired, so please correct me.
Thanks for the comments. I hadn't thought about the trust possibility. It's not all that much money. I expect to get about $35,000 when it's all said and done.So, it was set up in a trust, it seems. Your sister is the trustee and executor, and so she controls the disbursements to you. Without knowing the structure and language of the trust, it's hard to advise you on what to do.
Your sister should ask the insurance company if that can be changed in how its set up. If it is irrevocable, then your sister could always calculate how much tax will be owed this year upon lump sum withdrawal, and keep the tax consequence, and give each of you the net amount. Hopefully all of you get along well enough that it would not be a problem.........
Thanks for the comments. I hadn't thought about the trust possibility. It's not all that much money. I expect to get about $35,000 when it's all said and done.
Whatever it is it's irrevocable. When my sister found out he bought a VA she tried to get it undone. My father became obsessed with leaving something to his children and he didn't want to pay taxes if he could avoid them. His 15% marginal rate was obviously crushing him. He was the classic case of someone that shouldn't get a VA getting one sold to him.
The plan according to my sister is exactly what you suggest. She will pay the tax and write individual checks. It screws up things like possible gift taxes and I'd sure hate to have this "non-income" show up during an IRS audit. I'd feel so much better with my own little 1099.
So, it was set up in a trust, it seems. Your sister is the trustee and executor, and so she controls the disbursements to you. Without knowing the structure and language of the trust, it's hard to advise you on what to do.
Your sister should ask the insurance company if that can be changed in how its set up. If it is irrevocable, then your sister could always calculate how much tax will be owed this year upon lump sum withdrawal, and keep the tax consequence, and give each of you the net amount. Hopefully all of you get along well enough that it would not be a problem.........