Talk of The Villages Florida - View Single Post - If you pulled 250k out of the stock market....where would you put it?
Thread: If you pulled 250k out of the stock market....where would you put it?
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Old 08-03-2009, 08:47 AM
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Originally Posted by NJblue View Post
I am aware of the consequences of annuity payments versus dividends and/or capital gains from a portfolio of equities (the annuity is taxed as income and the the others are at a reduced rate - for now). However, I'm not aware of any differences between interest from CDs versus annuity payments. It seems that both are charged as income. Can you elaborate?
You are correct that they are both equally charged as income.
For us if we held out of a CD what we needed for the year vs getting an equal monthly amount from an annuity that is where we had a tax concern. The interest rate paid on CD's right now is so low that we would have paid more in taxes by changing to an annuity vs the CD dividends.