When I turned 72 this year, I sold about 2/3 of my IRA and bought a SPIA. It reduced my RMD, but there is no free lunch. The SPIA is taxed as ordinary income. But we love the guaranteed income. I still had an RMD this year, but I plan to buy a QLAC in 2023.
Thanks Stan. I am not a consumer, but I’m a registered rep who is fresh out of college and joined the industry with no knowledge of how anything works. Your videos helped me gain a good foundational understand of fixed annuities and how they work. Thank you!
Thank you for the kind words! I'm glad to hear that my videos have been helpful in building your foundational understanding of Fixed Annuities. If you have any more questions or topics you'd like covered, feel free to let me know! Thanks for watching.
Good Advice,but a fixed annuity can not grow to cover inflation.My wife and I purchased an annuity for $400,000 which pays out aprox 3500 a month or 42,000 per year.Weve been receiving that payout for about 10 or 11 years so we've gotten our money back and are now in a happy spot.Of course none of these payouts shows the taxes we have to pay. I've always told my wife the only thing that will hurt us is increased taxing and inflation.I thought the taxes would rise slowly and inflation would remain in the 2 to3% range. Boy was I wrong ,thanks stupid Bidenomics.
When I turned 72 this year, I sold about 2/3 of my IRA and bought a SPIA. It reduced my RMD, but there is no free lunch. The SPIA is taxed as ordinary income. But we love the guaranteed income.
I still had an RMD this year, but I plan to buy a QLAC in 2023.
If this video was recorded in 2022, then the IRS QLAC limit is $145,000 not $135,000.
You are correct! Today's limit is now $145K
Thanks for the info.
You’re welcome! Thanks for watching.
Implied, but not explicitly stated... If the annuity is held outside of a qualified account? Are there RMDs then?
no
RMDs are for qualified money.
So why do you not do variable annuities.
Great question, please feel free to book a call with me to discuss!
www.stantheannuityman.com/book-a-call/
Thanks Stan. I am not a consumer, but I’m a registered rep who is fresh out of college and joined the industry with no knowledge of how anything works. Your videos helped me gain a good foundational understand of fixed annuities and how they work. Thank you!
Thank you for the kind words! I'm glad to hear that my videos have been helpful in building your foundational understanding of Fixed Annuities. If you have any more questions or topics you'd like covered, feel free to let me know! Thanks for watching.
Good Advice,but a fixed annuity can not grow to cover inflation.My wife and I purchased an annuity for
$400,000 which pays out aprox 3500 a month or 42,000 per year.Weve been receiving that payout for about 10 or 11 years so we've gotten our money back and are now in a happy spot.Of course none of these payouts shows the taxes we have to pay. I've always told my wife the only thing that will hurt us is increased taxing and inflation.I thought the taxes would rise slowly and inflation would remain in the 2 to3% range. Boy was I wrong ,thanks stupid Bidenomics.