Would I have 60 days to roll it over into another IRA and avoid taxes if I decided on that route instead?No, you cannot deduct the amount invested in the annuity.
Why? I would be getting a much better return than I'm currently getting. Deciding between an 8% tax deferred annuity and a taxable 3% CD doesn't take a genius. Why do you say it's a mistake?And, while the products are constantly changing, unless you are quite rich and are really trying to shelter money, our office feels getting a 72 year old into an annuity should be punished by law.
Whoa... You said a "fixed annuity" in your first post. Where are you getting a fixed annuity with an 8% return? Is this an index annuity? Otherwise known as an "equity index annuity" or "fixed index annuity?"Why? I would be getting a much better return than I'm currently getting. Deciding between an 8% tax deferred annuity and a taxable 3% CD doesn't take a genius. Why do you say it's a mistake?
Hear, hear...! It looks like you've snapped at the bait and the hook has been set. You still have time to decide to spit it out before being hauled into the boat. If you decide that you want to be in the boat, that's fine. But understand what life in the boat is going to be like before you decide.tranquility: I didn't say "mistake", I said "punished by law". Read and educate yourself on the matter. Don't rely on the salesman trying to get a commission to tell you about the product.
It's a fixed index annuity with a lifetime income rider that guarantee's 8% compound. Yes I know it only applies to income, but that is what I want it for. It also has the potential, although not the guarantee, to generate a significant return towards cash value without risk. If my understanding is incorrect please enlighten me.Whoa... You said a "fixed annuity" in your first post. Where are you getting a fixed annuity with an 8% return? Is this an index annuity? Otherwise known as an "equity index annuity" or "fixed index annuity?"
Hear, hear...! It looks like you've snapped at the bait and the hook has been set. You still have time to decide to spit it out before being hauled into the boat. If you decide that you want to be in the boat, that's fine. But understand what life in the boat is going to be like before you decide.
Saying that it should be "punishable by law" is implying that I am making a mistake. Please tell me why.Annuitys have a high up front cost. While you may be promised certain returns, read the fine print. Quite frankly, in this market, an 8% return is awesome.
How does one get an awesome return? Think about economic theory.
I didn't say "mistake", I said "punished by law". Read and educate yourself on the matter. Don't rely on the salesman trying to get a commission to tell you about the product.
No, I am not going to try to comment on a product that I have not seen. There are simply too many varieties of FIA's with complex features.If my understanding is incorrect please enlighten me.
The agent was very insistent that I understand how it all works and he was highly recommended by friends. I understand as well as I ever will. He did explain surrender fee's and bonus vesting, as well as the strength of the company. He would not give me tax advice however, which is why I came here. So do you know if I would have 60days to roll it over into another IRA and avoid taxes if I decided on that route?No, I am not going to try to comment on a product that I have not seen. There are simply too many varieties of FIA's with complex features.
As long as you understand all the moving parts, what the guarantees are
guaranteeing, and have checked the financial strength of the insurance company, it is your decision.
Either you are mistaken or a very large and well known company is printing lies. You seem to be very anti annuity. Are you by chance a stock broker? My stock broker was very insistent that we not move any money into fixed annuities as well. Just before he lost half of everything we had.I guarantee you no one is giving 8% with no risk.
Yes, but a trustee to trustee transfer is usually safer.So do you know if I would have 60days to roll it over into another IRA and avoid taxes if I decided on that route?
That is uncalled for. One does not have to be a stock broker to view annuities (especially index annuities) with skepticism.You seem to be very anti annuity. Are you by chance a stock broker?
If you lost "half of everything... That's what happens when you are dealing with a broker. It implies that you were allocated approximately 100% in equities. That's a totally improper asset allocation for a 72 year old. I can understand why you are jumping from the stock broker skillet into the life insurance agent fire. Unfortunately, quite a lot of that happening after the last year and one-half.My stock broker was very insistent that we not move any money into fixed annuities as well. Just before he lost half of everything we had.