Message Font: Serif | Sans-Serif
No. of Recommendations: 0
A couple of considerations. If you sell your funds now you will incurr capital gains taxes. And if you invest the proceeds in a variable annuity index fund any further appreciation will be taxed at the marginal rates of the beneficiaries upon her demise.

If you are comfortable with an index fund why not sell the Witter funds and buy Spydrs. This would allow her to withdraw funds as needed (by selling shares of SPDRS), while any capital gains in the account will receive a stepped up basis upon her death, reulting in no tax liability for the heirs.

My research found Vanguard 500 Index fund to be a good choice if you decide to go that way. I personally rolled some fixed income annuities into it and have been satisfied with the results. For the reasons stated above present and future investments will be in SPDRS.

Just my thoughts on the subject. Hope they help.


Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.