UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Next Thread
Author: sassygal2 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: reinvesting annuities Date: 3/23/2000 2:12 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I am sixty years old and I have all my money in
annuities. I knew nothing about annuities except they
were tax free. I couldn't even get my broker to tell
me how much money he was getting. After reading your
annuities:whats to like, I don't know how to reinvest,
or am I too late.
Print the post Back To Top
Author: woolford Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20419 of 76237
Subject: Re: reinvesting annuities Date: 3/23/2000 7:06 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Hi! I too am in the same predicament, and don't know what to do when an annuity comes due. There has got to be a way to shift the monies over to something (mutual fund?) or do we just have to bite the bullet and pay the tax the year it comes due? If you have found out I sure would like to hear what. Thanks

Print the post Back To Top
Author: wjm457 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20425 of 76237
Subject: Re: reinvesting annuities Date: 3/23/2000 8:28 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Don't know whether this will help or not, but this site has a lot of information on annuities as well as other financial subjects.

www.efmoody.com



Print the post Back To Top
Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20430 of 76237
Subject: Re: reinvesting annuities Date: 3/23/2000 10:09 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Unfortunately, annuities aren't even tax-free: whenever money is withdrawn from them, (even in the case of your death) part of it will be taxed at the appropriate income tax rate.

If your broker is not giving you the information you need, dump him and file a complaint with the SEC. Otherwise he will keep deceiving other people.

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20433 of 76237
Subject: Re: reinvesting annuities Date: 3/23/2000 10:13 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, Sassygal2, and welcome. You wrote:

<<I am sixty years old and I have all my money in annuities. I knew nothing about annuities except they were tax free. I couldn't even get my broker to tell
me how much money he was getting. After reading your annuities:whats to like, I don't know how to reinvest, or am I too late. >>


You don't tell us if these annuities are in a tax-sheltered vehicle like a 403b plan/IRA or just in a plain ole vanilla tax-deferred annuity you bought yourself with after-tax dollars. If they're in a plan or an IRA, then you could surrender them and transfer the net proceeds to an IRA of your choice without income tax impacts. That way you may defer taxes until you take withdrawals from the IRA. If they're regular annuities, then you could also surrender them. When you do, though, you will have to pay income taxes on any gain over what you paid for those annuities. The net proceeds could then be invested in a taxable account of your choice. They are not eligible for transfer to an IRA.

As to how to reinvest, that's a personal decision we all have to make based on our investment knowledge and willingness to take risk. No one here will tell you what to do because we believe you must make those choices yourself. However, there's a wealth of material available to help you do that. assume you're new to both Fooldom and to investing. That's great on both counts! You have wandered into a forum that believes you, as an individual, can do far better for yourself than most professional money managers. Provided, that is, you take some time to learn a few basic investment concepts and do some self-examination to see where you fit on the risk tolerance scale. Therefore, why not take some time now -- not later -- to be sure about what you want to do. Start first by reading The 13 Steps to Investing Foolishly, which you can access from the main, opening screen to The Motley Fool. They will suggest some important things you should consider. Then I suggest you toddle over to your local library, discount bookstore, or even here in the Fool Mart, and pick up some easily read, easily understood, inexpensive texts that will thoroughly explain how to invest in stocks using some simple systems that will take but an hour per year of your time (if you're slow) yet produce returns that put the majority of professional money managers to shame. I suggest and commend the following to you: "Beating the Dow" by O'Higgins; "The Dividend Investor" by Petty and Knowles; "The Motley Fool Investment Guide" and "You Have More Than You Think" by the Gardner brothers; "One Up on Wall Street" by Lynch; and "What Works on Wall Street" by O'Shaughnessey. All are well worth their low cost and the small investment in time it takes to read them. Get them and read them. You'll be glad you did.

While you're doing all that, also take some time to explore the various nooks and crannies of Fooldom to see what others are doing and what they're discussing. I also recommend you read my 13 Steps to Foolish Retirement Planning and my Foolish Retirement Plan Primer. Both may be found at http://www.fool.com/Retirement/Retirement.htm , and they will help give you some insight as to what you can do. In the process of all that reading, you'll gain a wealth of knowledge and information that will serve to clarify how you want to approach this very personal issue. Don't be afraid to ask a question anywhere in Fooldom. Folks around here are great about answering questions and clearing up misunderstandings.

Regards..Pixy


Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20434 of 76237
Subject: Re: reinvesting annuities Date: 3/23/2000 10:14 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, Woolford, and welcome. You asked:

<<Hi! I too am in the same predicament, and don't know what to do when an annuity comes due. There has got to be a way to shift the monies over to something (mutual fund?) or do we just have to bite the bullet and pay the tax the year it comes due? If you have found out I sure would like to hear what.>>

Like Sassygal, you haven't told us if these annuities are in a tax-sheltered vehicle like a 403b plan/IRA or just in a plain ole vanilla tax-deferred annuity you bought yourself with after-tax dollars. If they're in a plan or an IRA, then you could surrender them and transfer the net proceeds to an IRA of your choice without income tax impacts. That way you may defer taxes until you take withdrawals from the IRA. If they're regular annuities, then you could also surrender them. When you do, though, you will have to pay income taxes on any gain over what you paid for those annuities. The net proceeds could then be invested in a taxable account of your choice. They are not eligible for transfer to an IRA.

Regards..Pixy

Print the post Back To Top
Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20438 of 76237
Subject: Re: reinvesting annuities Date: 3/23/2000 10:25 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
don't know what to do when an annuity comes due. There has got to be a way to shift the monies over to something (mutual fund?) or do we just have to bite the bullet and pay the tax the year it comes due?

woolford, I'm not sure what you mean by "annuity comes due". With an annuity, you have several options of how you want to take the payments: one lump sum at a specified date, constant withdrawals for life, withdrawals for life with the amount increasing for inflation, or withdrawals until the money is gone. You have to let your annuity company know what withdrawal option you want. Any time you withdraw from an annuity, you pay tax on the gains -- no way around that, it's how annuities are designed. (Though you're certainly welcome to try to find some tax deduction to offset the income.)

If you're unhappy with your current annuity company, you can find a new one and ask them to do a 1035 exchange. The new company will let you invest the funds as you see fit within their plans.

Low-cost annuity companies include Vanguard, TIAA-CREF, and annuity.net.

Print the post Back To Top
Author: lectic One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20451 of 76237
Subject: Re: reinvesting annuities Date: 3/23/2000 1:40 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Pixy - I read and thoroughly enjoyed O'Shaughnessy's book "What Works On Wall Street", However, thinking he had most of the answers I dropped my first and second ROTH contributions into his Cornerstone Value and Gowth funds. What a mistake! High costs coupled with terrible returns. It's too bad since his theory seems sound. I am taking over control of my own destiny by plunking the money into an account with an online broker.

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20454 of 76237
Subject: Re: reinvesting annuities Date: 3/23/2000 2:12 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Lectic writes:

<<However, thinking he had most of the answers I dropped my first and second ROTH contributions into his Cornerstone Value and Gowth funds. What a mistake! High costs coupled with terrible returns. >>

I, too, enjoyed the book. As to the funds, though, nothing beats being able to do it yourself. I doubt they will ever enjoy the returns theoretically obtainable simply because of the rules under which they must let alone the management and administrative fees involved.

Regards..Pixy

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Next Thread
Advertisement