by Guest » Tue Jun 19, 2012 11:26 am
Can anyone here give me a rough estimate?
I'm 52 years old now. I want to save for retirement, and considering annuities as my option. How much of a deposit will I need to dole out as a lump sum or even as monthly payments? At least for a target of $150k after 7 years.
I'm 52 years old now. I want to save for retirement, and considering annuities as my option. How much of a deposit will I need to dole out as a lump sum or even as monthly payments? At least for a target of $150k after 7 years.
Posted: Sat Jul 07, 2012 10:42 am Post Subject:
It makes sense that the majority of VA sales would occur with qualified money and make use of guarantees. This makes sense for a couple of reasons.
1)Variable annuities are typically more expensive than the underlying funds. Often this cost difference is more than 2%. With such a huge price difference, it is stupid to use a VA for qualified money UNLESS one wants the guarantees.
For this reason, most qualified VA money will have a guarantee.
2) For unqualified money, VAs have one tax advantage (tax deferral), but they have also have lots of tax disadvantages (pre-59 1/2 tax penalties, gains out first, income instead of capital gains tax, no step up of basis at death).
One shouldn't be funding a non-qualified VA unless they are already maxing out qualified money (for most people, this is $22,000). Most people can't do this. For those who can, the disadvantages still usually outweigh the advantages.
So, when we combine the facts that most people should not be purchasing non-qualified VAs with the fact that those who do buy VAs that are qualified are doing it because of the guarantee, it only makes sense that the majority of VA money is qualified and has guarantees.
Posted: Thu Jul 19, 2012 07:06 am Post Subject:
Don't expect cheap rates since you're already in your 50s. But with that said, given your health, you'll find competitive rates online on an aggregator website. On aggregator AccuQuote.com, only policies from companies rated A- (or "excellent") and higher are sold. Look around and comparison shop for the best life insurance policy, you'll be surprised by how much rates can differ sometimes.
Pat Cassidy
Disclaimer: I work for AccuQuote and this is my personal opinion.
Posted: Fri Jul 20, 2012 07:06 am Post Subject:
Has nothing to do with the discussion of annuities. Don't know where this post belongs.
Posted: Fri Jul 20, 2012 03:33 pm Post Subject:
Has nothing to do with the discussion of annuities. Don't know where this post belongs.
"Hello, I'm Pat Cassidy and I don't know very much about insurance, but I still will spam for my company at every chance that I get."
Disclaimer: I don't work for AccuQuote and this is my personal opinion.
Posted: Wed Aug 01, 2012 07:07 am Post Subject:
Get an estimate for annuities online and [link removed per TOU] life insurance[/url] on an aggregator website. There are different types of annuities that work differently; you'll want to compare features and projected illustrations for yourself, or use the help of an experienced and recommended fee-only financial planner.
Pat Cassidy
Disclaimer: I work for [link removed per TOU] life insurance[/url] and this is my personal opinion.
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