Skip to main content
No. of Recommendations: 0
Variable annuities are a money maker for the salesperson and the company, by skimming much of the benefit (like dividends) that the customer would have received if they'd invested directly instead of through the annuity.

To clarify, Equity Indexed Annuities do that, Variable Annuities DO NOT do that.


Still doesn't make them an optimal choice, just less punitive.


So, great if you can leave your multi-million IRA to your kid - he'll only have 5 years to disburse it all. So he's likely to be boosted into the top bracket in some, if not all, of the 5 years he has to disburse the account.

This.

I've already had to start advising clients (mostly those with a single bene) that they now need to consider realizing their IRA income to avoid their adult child getting hit with 10 years of nasty taxes.

The unfortunate consequence of this recent change is that many retirees will have saved $$ on taxes only to pass the money to their child(ren) who will pay $$$ in taxes due to the shortened timeline.

Pushing RMDs to 75 will only make the issue worse. Sure, it benefits me as that means 3 more years of money not leaving an account but all else being equal, it is probably poor financial advice - and I don't see how even rich constituents think they (or their heirs) are advantaged by such a delay.
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.