No. of Recommendations: 0
Subject: retirement coming in jan. 2000
Author: michaelglick Date: 8/8/99 3:40 PM Number: 12978
I hear a lot about Annuities, how do they work, pls give me the pluses &

1. From the title and question I suggest you get a copy of Publication 575 AND more importantly Form 4972 and its instructions. 5 year averaging ends the day before you're set to retire, and MAYBE all the rest depending on how you interpret TRA97 (which I can't unravel yet in this regard). Maybe it's not for you, depends on your personal tax bracket v/s overall 4972 tax.
2. My PERSONAL feelings, subject to criticism, is to invest in a tax managed index 500 fund and cash in some as needed, paying LTCG rates on the percentage of growth.
3. If 1 doesn't work, and you don't want to pay taxes now, roll everthing into a IRA and invest wisely.
4. I would not suggest anyone getting locked into an annuity, anything with a load, anything with a departure fee, anything guaranteed, anything with a commission. These are generalizations meant as food for thought and awareness, not specific to any product. Ed
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