Pension buy out now in annuity
I had a pension buy out that I put into an Allstate annuity fund 8 years ago, it was supposed to double the amount in 10 years but it’s not looking that way. I contacted them asking to get out of the fund and was told I’d be taxed even if I take the money and put into another account? Is this true, I of course don’t want to take a huge hit but it does not appear that this working out the way I was lead to believe? what are my options here, thank you for any advice
Terry Says
Well, first of all, it’s easy to find out if it’s “working out.” Just ask them to illustrate the value at the end of 10 years — because a lot of the gain comes in the last two years!
Then, you need to understand that this was pre-tax pension money you invested, so it will ALL be taxed upon withdrawal.
But you don’t have to take it all out at one time. And if you’re not ready to take ANY of it out, you can roll it over to another tax-deferred product. They’ll probably try to sell you that, but it will come with new penalties for early withdrawal.
I don’t know the specifics, but if you will contact my trusted annuity expert, I’m sure he can show you whether your promised returns will happen –and show you alternatives. Contact Jeffrey Oster: Jeffrey.Oster@raymondjames.com. You can trust him. and you can use my name or not as I get nothing out of this recommendation except the knowledge that you will bein good hands.
