[Rwirish]

Disagree 100% regarding annuities.

[Eg_cruz]

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...

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.

[Eg_cruz]

Originally Posted by Gigi3000

Yeah, I've read that the market is suppose to take a dive. Banks removing lines of credit etc. I'll probably take lump sum if only have to pay $30000 in taxes.

$30k is wrong
You will be taxed as ordinary income. So take your income today and add $200k and that is what you will pay tax on. Ask yourself how long will it take to make that money tax money back with the funds I have left over.
$200,000 - taxes 28%(est) $56,000 balance $144,000…….how long does $144,000 take to make $56,000

[Eg_cruz]

Originally Posted by Gigi3000

You're right. I looked at ordinary income but this is long term capital gains. Do you know if you pay short term gains inside of an annunity?

It’s not Long term capital gains……it’s ordinary income

[Out&Proud]

Always seek financial guidance from a or several finance professional not a message board!

[Luggage]

The only people who like annuities are the salespeople. You can go to any accountant and for about a hundred bucks an hour you can discuss your own financial disposition. I don't know why you are not taking social security, but I hope if you're 65 you're on Medicare and have part d at least . And also two or three opinions and spend a few hundred bucks with both the accountant and a tax attorney

[glennl0159]

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...

I work in the insurance/investment world. Because of the SECURE Act and that it is a Inherited annuity you will have 2 options.
If it was an IRA account you have 10 years to pay the taxes you decide how all now, a little each year, or all at once at the end of the 10 years.
If it was non-IRA, you have up to 5 years to pay the taxes either all now or equally over 5 years.
No matter what it is taxable ordinary income and your tax rate that goes with it.
If you have no current taxable income as you mentioned it would make much more sense to liquidate it over time and pay at lower tax rates as this would be your only income.

[Kjbatl]

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...

The previous responses are correct to tell you to get a fee only financial planner i.e. one that does not sell any investment products. The main reason is this person will look at the specific products your money is currently in and they will also look at all avenues for inheritance that could reduce your tax outlay. They will not be looking at a specific product to put your money in that makes them a commission or only what their bank sells. Can't stress enough that they will look at your entire situation and will ask what your goals are in the future to give you the best strategy to make those goals a reality. An example would be giving you a recommendation on when taking social security is best to meet those goals. It might cost you $800 or $1,000 upfront for a good advisor, but they can save you thousands on future taxes or mistakes picking the wrong investment products to meet your goals.
We interviewed a few advisors and talked about what we wanted to get out of the process and got an overview of what they did, what to expect, fees, etc. Once we were set on an advisor, then we had to bring them statements and details of accounts like the annuity you speak of inheriting. After they had our information, it took them about a week and then we met again to go over what they came up with. The binder of information was a couple inches thick and provided detailed analysis from current age to end of life expectancy. It was well worth the $1,000 we spent as it kept us from making some mistakes that would have cost much more in returns and taxes over the following few year. Hope this helps.

[noslices1]

If it’s a 10 year guaranteed annuity, if you died before you are 73, your spouse would only get the amount that would have been paid through the ten yers and the rest will be forfeited, however, if you lives to be 93, you will receive lots more than it is now if it’s a lifetime annuity. It will be steady income you can count on every month though. Make sure the payout interest rate is over 7 or 8%.

[b0bd0herty]

Originally Posted by retiredguy123

I would never buy an annuity. The advisor is recommending it because they want to make a commission on your money that will be about 10 percent of the cost. So, if you invest $360,000 in the annuity, the advisor will make about $36,000. I very nice pay day. Don't do it without doing a lot of research on annuities. They are almost never a good investment.

On a $200,000 long term capital gain, the tax should only be about $30,000, which is 15 percent, unless there are other circumstances.

You absolutely need to check out a Certified Financial Planner. We started with Senior Financial Security (who also work with BucketListWealth) and they first asked us what is our goals. Their vision is, "Helping seniors and retirees protect their assets from stock market downturn, nursing homes and Uncle Sam."
Since then our investments have only gone up. They are very personable and Jean Ann Dorrell is also a Certified Estate Planner, author and has been seen on Fox News, reutors, Wall Street Journal and many more. Honestly, you can't go wrong just talking to her.

Her facebook page is Senior Financial Security and a web site that you can schedule an appointment on is, senfinancial.com

[Ameliafay]

Parady Financial has hundreds of clients here in The Villages. You really should talk to them before making a decision.

[Petersweeney]

Cash good….
Annuities bad!!!!
Ask any caveman….

[will1546]

Don’t worry about what the agent makes. Look for principal protection, low taxes on gains and if it meets your goals.

[retiredguy123]

Originally Posted by Ameliafay

Parady Financial has hundreds of clients here in The Villages. You really should talk to them before making a decision.

Parady will try to sell you another annuity.

[BumpaOompa]

Good God man! You’re all over the place here. Seek the advice of a qualified financial planner. A negligible cost considering the asset. If instead you prefer to take the guidance of strangers on an anonymous message board then I have a bridge for sale.