Quote:
Originally Posted by Gigi3000
I'm 63, cost basis $160000, gain $200000. Bank advisor offered indexed variable annunity, 10 year spread. Anyone familiar with these? I have no experience with annunities. Trying to figure out whether to take lump sum and just pay the $70000 tax bill or do the annunity. If I take the annunity I'd put it into index mutual funds. My situation is very simple...I have no income, lots of savings, no mortgage on home, no tax deductions. If take annunity, goal.would be income I guess. Not taking social security, maybe take at 65.or wait until 70...
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No reason to close it and pay the taxes. There are a lot of good annuities out there.
Quick tip: be careful of variable annuities they have a lot in fees. Don’t buy a Fixed Index Annuity and put riders on them again because of the fees.
Your best bet is a simple Fixed Index Annuity because you are inheriting the annuity you will have to take distributions every year which will help with spreading the taxes out over the years.
Don’t get an annuity with a bonus either, nothing is for free when you get a bonus your returns over the years will be a lot less then a annuity without a bonus.
Don’t get annuity with more then 10 yr surrender (because you are younger then 65 you can get one for longer) in fact the 7 yr annuity have higher returns.
Feel free to email if you have any questions.