I understand the dislike of annuities. I don’t need them but I have a couple of deferred annuities with USAA for the diversification and tax deferral. The rates they paid at the time were good.
Either I cash them out and pay the taxes, roll them into another deferred annuity, or can choose to turn them into income annuities.
My though is to eventually turn them into income annuities and have them pay out for my lifetime and the lifetimes of each of my children. So I would get a monthly payout for life which would continue to payout to each adult child for their lives.
It seems a good way to protect a portion of their inheritance for them. I’m trying to figure out any downfalls. Sure I know it will reduce my monthly payout amount since it’s covering the life of a younger person as well but I don’t need the money anyway,
Either I cash them out and pay the taxes, roll them into another deferred annuity, or can choose to turn them into income annuities.
My though is to eventually turn them into income annuities and have them pay out for my lifetime and the lifetimes of each of my children. So I would get a monthly payout for life which would continue to payout to each adult child for their lives.
It seems a good way to protect a portion of their inheritance for them. I’m trying to figure out any downfalls. Sure I know it will reduce my monthly payout amount since it’s covering the life of a younger person as well but I don’t need the money anyway,