No. of Recommendations: 0
To summarize, your most important question is that you are considering a non-qualified deferred annuity so that you can better qualify for financial aid for your children?

That would be more of an icing on the cake than the primary reason.

(There is no reason to really do a comparison of your SS and RMD situation without adding in the pensions so until you have those numbers, I would wait on any conversion decision. Those "moderate" pensions will have a significant impact on your decision.)

Just analyzing the TIRAs for RMDs is going to kill us if we don't convert or draw down a significant portion before then. I would think adding in the pension would just make it worse, and in no way better. We need to be very proactive in dealing with this from year one, or the problem will just compound.

You state that retirement funds do not count toward EFC, have you confirmed that a non-qualified annuity would be consider retirement funds under that scenario?

Yes, this is the basis of an entire industry for parents of college age kids.

Note, with the annuity, you need not necessarily take income from it in the future. You could simply cash it in at maturity and pay taxes on whatever gains you experience.

Is this with all types of annuities, or just variable? Are annuities subject to RMDs at all?

...assuming you are only doing this to game the EFC and are not looking to make much money in the process.

Looking also to diversify risk of payout from market turmoil. Currently very heavily subject to stock and bond market volatility, which I recently posted uncertainty over.

The little research I've done on this was on the Vanguard website. Unfortunately, they want me to call to discuss it, and I am not ready for that.

Thanks for your input,

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