Floridatennisplayer
Recycles dryer sheets
- Joined
- May 3, 2014
- Messages
- 485
You could just as well assume a loss. Which is why I chose not to guess. No just the 400k.
Who has no regrets about their fixed immediate annuity?
- Thread starter LXEX55
- Start date
You could just as well assume a loss. Which is why I chose not to guess. No just the 400k.
Ready-4-ER-at-14
Full time employment: Posting here.
I have no regrets about the annuity portion of our holdings.
We own them in several different ways.
1. in a cash account. In our case about 2/3 of the payment is considered a return of cash paid in and is not taxable. So if we got $300 a month only $1200 a year would be taxable. (12 x $100)
2. In an IRA. Money paid out will be taxable as a distribution after a certain age.
3. In a roth ira. Money paid out after certain age and length of time not taxable, at least directly.
Seems some of these had to be owned by the brokerage firm for benefit of us to work right.
Have smaller policies in several companies so should one go belly up may get some state payments from a guarantee fund but there would be a time lag.
Read a book a long time ago entitled die broke. Seems they suggested knowing what sum you would have to annuitize to pay your annual bills/expenses and should your investments draw down to that level sell all and annuitize.
My logic was annuitize what we needed like buying a pension, and invest the rest. Fortunately we had funds to do both. In fact have dividend stock, bonds, cds, annuities and index plus some commodities and reits. If they all go bust or are consumed by inflation... whatever will be will be, the futures not mine to see... lol
We own them in several different ways.
1. in a cash account. In our case about 2/3 of the payment is considered a return of cash paid in and is not taxable. So if we got $300 a month only $1200 a year would be taxable. (12 x $100)
2. In an IRA. Money paid out will be taxable as a distribution after a certain age.
3. In a roth ira. Money paid out after certain age and length of time not taxable, at least directly.
Seems some of these had to be owned by the brokerage firm for benefit of us to work right.
Have smaller policies in several companies so should one go belly up may get some state payments from a guarantee fund but there would be a time lag.
Read a book a long time ago entitled die broke. Seems they suggested knowing what sum you would have to annuitize to pay your annual bills/expenses and should your investments draw down to that level sell all and annuitize.
My logic was annuitize what we needed like buying a pension, and invest the rest. Fortunately we had funds to do both. In fact have dividend stock, bonds, cds, annuities and index plus some commodities and reits. If they all go bust or are consumed by inflation... whatever will be will be, the futures not mine to see... lol
