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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.


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.
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