My DW and I are reviewing her alternatives for saving. I am retiring in four years with a six figure pension and she will receive the same amount upon my death as we are 14 years apart. I have 403B with over $100,000. We have a four year old who we hope to go to college one day so a 529 account has been started. My wife has an IRA with Lincoln National in their American Legacy variable annuity. It currently has about $65,000 in it and another 401k from her old job that has $70,000. She currently is maxing out her 401k at her new job. She makes nearly $200K per year.
I could roll over the old 401k to the variable annuity but I am hesitant about doing that because I don't like the distribution payouts and the fees on it will be over 3% if I add the additional $70,000 as it has a step up fee to guarantee the principal. I don't have to step it up but it would be nice to do so.
My other concern is that all of this money is pre-tax dollars. We are going to get slammed with taxes on any distributions we take out when it's the two of us. She will more than likely outlive me so she will really be hit with taxes. We are looking at her retiring in 10-12 years. She would then be in her mid fifties. (I don't think I can get her to 55 but I am trying.) We are in the process of moving from California to Texas so our cost of living is drastically lower and our home a lot cheaper.
I know a financial advisor can help, but I am somewhat leery of them. That's how she got the variable annuity. I am thinking of getting taxable accounts or investing in stocks or something. Are there any suggestions? We want to save the majority of her check. Where should we put the money?
I could roll over the old 401k to the variable annuity but I am hesitant about doing that because I don't like the distribution payouts and the fees on it will be over 3% if I add the additional $70,000 as it has a step up fee to guarantee the principal. I don't have to step it up but it would be nice to do so.
My other concern is that all of this money is pre-tax dollars. We are going to get slammed with taxes on any distributions we take out when it's the two of us. She will more than likely outlive me so she will really be hit with taxes. We are looking at her retiring in 10-12 years. She would then be in her mid fifties. (I don't think I can get her to 55 but I am trying.) We are in the process of moving from California to Texas so our cost of living is drastically lower and our home a lot cheaper.
I know a financial advisor can help, but I am somewhat leery of them. That's how she got the variable annuity. I am thinking of getting taxable accounts or investing in stocks or something. Are there any suggestions? We want to save the majority of her check. Where should we put the money?