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Author: mfltcipro One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 294  
Subject: Re: Equity Indexed Fixed Annuities - Pros/Cons Date: 1/2/2010 10:04 AM
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Dueceman1, in 2010, everyone qualifies for a Roth "Conversion" or a "partial" Roth Conversion, no income limits for this year. Pay the tax now (can be spread over 2 years) or pay it later at possiblly higher tax brackets...most agree taxes will be on the rise to cover our "party animal" congress and white house, another story. The future tax savings on income received at retirement from your retirement accounts could be substantial. It should, at least, be a serious consideration. Get your bean counters to work for you on that one. Equity index annuities can be a great vehicle for retirement with monies that you no longer wish to have at "market" risk. Especially, if you intend to leave a substantial portion of assets to future generations...check out the EIA's multi-generational beneficiary arrangements combined with the Roth IRA's. May be more than enough rason to do the Roth conversion. Can make your children and grands super wealthy. Zero downside unless you bail-out (surrender account values) before the 5-7-10 yr., etc., (varies by plan) surrender penalty period. It's easy to get the research on this. Just be careful about professional "biases" on each side of that fence. Brokers hate EIA's, insurance guy's love 'em, sometimes too much. A well-informed CPA or "fee-only advisor referee might be your best bet with the final analysis just to make sure the numbers work in your favor. The money spent with him/her should be a great investment in your future and your sleep. I am a firm believer that "most" savvy retirees will need some equities exposure to the market for inflation protection, depends. Congrats on a great job for being on target for your retirement.
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