Wife wants an annuity but which one?

Jan 29, 2019

  1. obewan
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    obewan New Member

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    I should have described it as something other than emergency. We do have an emergency fund. Not sure what to call it when it's something you don't really need for your living expenses. Just wanted to put it into some product where I could get a commission on.
     
    obewan, Feb 11, 2019
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  2. Allen Trent
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    Allen Trent Guru

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    you may really want to try to find a SPWL policy like the following attachments. 75% of the money into the PUAR values. If the hopefully never needed emergency happens, the PUAR values on the 2nd document can be partially surrendered or you could borrow it if you know you want to pay back. Lifetime distributions are taxed just like a NQ Annuity would be, but if you never have that "hopefully never needed emergency" the death benefit passes tax free. Tax deferred cash growth while alive like NQ annuity, but Tax free death benefit at death like life insurance. your wife might need that extra tax free life insurance if you die to offset Soc Sec reduction, etc.

    Note--not trying to sell you this product or get you to sell it. It is with single state company with multiline captive PC agents. Just trying to show you another possible option. Seniors love it with their lazy bank type money as it lines up many times with what they want their safe money to do. (no probate, tax deferred while alive, tax free at death, emergency access if needed, etc). EIA is also a great option & will likely outperform as a net after tax death benefit in years 20+ if it averages 5-7% each year. But, Annuities are an inefficient vehicle tax wise at death. Many seniors pay low or no income taxes, so Annuity money not used during lifetime passes the income tax bill on all the deferred gains. The tax rate tends to be much higher on the beneficiary who is either in a higher tax bracket in general or jumps into high tax brackets temporarily from inheriting Annuities & other taxable retirement accounts.
     

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