Dash man
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
It sounds like you’re getting great advice here. I also had my 401k with Voya and was pleased with the funds and low expenses. My megacorp paid all administrative fees.
DW and I have Fixed Retirement annuities with USAA and haven’t paid a penny in fees. However, it’s probably not a good choice for your mother with a smaller nest egg.
My Fixed Retirement annuity has the following properties:
Interest rate is locked in at the time of deposit.
It started with a 3% bonus on any first year deposits.
Ten percent can be withdrawn each year without penalty.
There was a penalty for withdrawing more than ten percent for the first seven years. (We considered deposits like a CD and didn’t touch them).
Interest is tax deferred.
Withdrawals are always interest first and taxed as such.
You can withdraw as much as you want after seven years free of penalty.
The funds are backed by the strength of the company, so make sure they are rated highly and financially strong.
The penalty for early withdrawals might hurt your mother, so I don’t think it’s a good idea for her. This type of annuity has been great for us. We recently had PenFed CDs mature and were able to deposit the money into our annuities locking in 3%. Beginning in November we can withdraw as much as we want without penalty. So we’re not locked into a CD term of several years to get this rate. We do have other CDs and equities. These annuities are about eight percent of our net worth. So it’s a great part of our plan, keeps our taxes down for now, and is secure with a highly rated company. It was a good choice for us. But I would never buy any other kind of annuity.
ETA: We’ve designated beneficiaries for any funds remaining after our death. The insurance company doesn’t keep it.
DW and I have Fixed Retirement annuities with USAA and haven’t paid a penny in fees. However, it’s probably not a good choice for your mother with a smaller nest egg.
My Fixed Retirement annuity has the following properties:
Interest rate is locked in at the time of deposit.
It started with a 3% bonus on any first year deposits.
Ten percent can be withdrawn each year without penalty.
There was a penalty for withdrawing more than ten percent for the first seven years. (We considered deposits like a CD and didn’t touch them).
Interest is tax deferred.
Withdrawals are always interest first and taxed as such.
You can withdraw as much as you want after seven years free of penalty.
The funds are backed by the strength of the company, so make sure they are rated highly and financially strong.
The penalty for early withdrawals might hurt your mother, so I don’t think it’s a good idea for her. This type of annuity has been great for us. We recently had PenFed CDs mature and were able to deposit the money into our annuities locking in 3%. Beginning in November we can withdraw as much as we want without penalty. So we’re not locked into a CD term of several years to get this rate. We do have other CDs and equities. These annuities are about eight percent of our net worth. So it’s a great part of our plan, keeps our taxes down for now, and is secure with a highly rated company. It was a good choice for us. But I would never buy any other kind of annuity.
ETA: We’ve designated beneficiaries for any funds remaining after our death. The insurance company doesn’t keep it.
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