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URL:  https://boards.fool.com/i-read-the-cnbc-article-and-confused-about-the-34190602.aspx

Subject:  Re: Let Social Security sell you an annuity? Date:  4/23/2019  11:15 PM
Author:  MCCrockett Number:  93213 of 94228

I read the CNBC article and confused about the problem that Robert Thayer is attempting to solve. It is not the income inequality problem that many economists and pundits think needs to be address for a more stable economy.

Unless Congress passes some law that requires all employers to provide 401(k) plans to all employees, it doesn't address the retirement needs of working class Americans. (Notus bene: I prefer the European definitions to that used by US politicians. If you're not an owner of a business, at or above your employer's middle management level, or in the top fifth of the income spectrum; you are working class.) Some working class Americans are covered by 401(k) plans but the majority aren't.

So, Robert Thayer's proposal seems to be a plan that benefits those that don't really need an extra $700-$!500 per month when they reach 85 or some earlier designated age. Does it really make sense to withdraw $150,000 or $250,000 from a 401(k )and transfer it to Social Security in order to get a slightly higher monthly payment when you claim retirement benefits?

I could use $125,000 in my current traditional IRA account and buy a Qualified Longevity Annuity Contract (QLAC). It would reduce my RMD withdrawals but not appreciably. Nor does it substantially reduce my taxes as the annuity produces taxable income.
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