FinanceDude
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Aug 3, 2006
- Messages
- 12,483
2B said:My father put all of his worldly assets into a variable annuity that can not be touched for another 2 years. The annuity is in some high fee mutual funds (proprietary to the company) and has a 2% annual fee on top. This annuity will survive his death by about 7 years before my siblings and I split it up. When it does come out, it was set up to cause the maximum amount of tax confusion for all of us.
My FIL put about 80% of his meager liquid assets into two deferred annuities. He got a guaranteed 3% (?) but it was tax deferred. The only problem with tax deferral is that my in-laws total income is about $50K annually and almost all of it is from pensions. Tax deferral isn't worth much to them. DW triggered the 3% penalty to get the cash out to cover their nursing home and assisted living expenses.
I know it's too late now, but a lot of annuities have a "nursing home" waiver that enables him to take out money without penalty for nursing home care................