Convert stock to an Annuity
Considering rolling stocks into an annuity to draw extra income to buy a car. My account w/ Wintrust is at 250K now, but fluctuates daily. Would I pay tax immediately after rollover or as I receive payments from annuity? I am a 65 year old female retired teacher, own my home and live comfortably on my monthly pension. NO DEBT! I do have other investments. Thoughts?
Terry Says
Wait. You don’t “roll” stocks into an annuity. You sell them — and pay taxes on any gains. And an annuity has fees and charges, and will likely lock you into a fixed monthly payment that won’t keep up with inflation.
Why not just sell enough stock to pay cash for the car and get a better deal. (Don’t forget to set aside money for taxes on gains.)
That strikes me as a more simple, efficient plan,.
