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Originally Posted by ERD50
Along with the idea of spreading annuity risk across several providers - doesn't this reduce your income? I always heard (never ran the numbers) that there is a significant amount of fixed cost to an annuity. Such that four separate $250K policies won't pay the same as a single $1M policy.
Not sure if that has a big impact or not. - ERD50
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Only to the extent that distributions from a SPIA are partly a return of your principle, and thus not taxable, to my understanding. I think 4 x 250K should be very similar tax-wise to $1mm all at once, corrected for the same tax bracket of course.
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Rich
Tampa, FL (ESR-bound. Really. I mean it. Seriously.)
As if you didn't know..If the above message happens to contain medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any medical purpose whatsoever. Consult your own doctor for all medical advice.
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