Moving Part of 401k to Annuity
Listen to many conversations you have with John Williams. I am 71 and wife is 66. We have a total portfolio of ~1.2M with ~80% in my 401k. Remainder is some of wife’s 401k along with stocks. All of our investments are with Edward Jones and the wist to this is our son is our Jones advisor.
Conversations have lead to an annuity discussion with $300k deposit being suggested. This is stated as a goal of long term tax saving as well as a set amount to augment our monthly income. Our only outstanding debt is a $459k mortgage on our retirement home at an ARM at 4.75% with 2.5 years left on the initial 6 year term. Not sure what else to provide but wondering if going this route into annuities is sound advice and if so, what type of annuity you would recommend.
Thank you very much.
Terry Says
Here’s the problem with annuities. You get a monthly payment (assuming you are talking about an “immediate annuity” where you get a check a month for life). And you cant take the money out once you do this. You just get that monthly check. It may look good now — but at 3% inflation the buying power of that check will be cut in half in 25 years (if you live that long)!
I think I understand that your son is with Edward Jones as a broker. So I don’t want to cause problems. But I am going to suggest that you get a “second opinion” from a FEE-ONLY FIDUCIARY advisor. Read this and watch the video: https://www.terrysavage.com/pam-krueger-wealthramp/
You’ll be matched with several fiduciaries, there is no obligation, and it might be worthwhile to have another set of eyes on this decision.
