ROTH IRA INSIDE A VARIABLE ANNUITY
I have a client that is almost insisting on taking her Roth IRA and putting it in a Variable Annuity that is offering a 7% guarantee return and on the 10th year anniversay, the Funds are guaranteed to Double……
I can’t recall the pros and cons of this ???
Permalink Submitted by Al Fry on Thu, 2008-12-04 21:16
The guaranteed return is 7.2% ONLY if she keeps the annuity for the 10 years, and then either annuitizes it or elects a guaranteed withdrawal benefit, currently in the 5-6% range. She cannot surrender it and get the double, nor does it guarantee the 7% short of 10 years.
Permalink Submitted by Dennis Julian on Thu, 2008-12-04 21:30
[quote=”[email protected]“]The guaranteed return is 7.2% ONLY if she keeps the annuity for the 10 years, and then either annuitizes it or elects a guaranteed withdrawal benefit, currently in the 5-6% range. She cannot surrender it and get the double, nor does it guarantee the 7% short of 10 years.[/quote]
TRUE, But she gets a death benefit and she can do a income stream for life; a period certain; a single life or a joint life or annuitizeit and ALL that is tax free…
Permalink Submitted by Al Fry on Thu, 2008-12-04 22:30
That is why I have annuities is some of my Roths!