Posted on 10/14/2009 3:37:42 PM PDT by unique
Has anyone here completed the transfer as noted above, e.g. transferred their 401K or 403b funds to an annuity with an insurance company, avoiding tax?
If yes, I would think that doing that now would be bad timing, given the low rate environment, correct?
Any thoughts on this subject would be appreciated.
I'm starting to look into options - thinking - fixed-rate for life - joint lives annuity.
or Charlie Rangel...........
Ping!
You would have made more money if you hadn’t gone to cash in June.
You can’t go to another 401k unless you are employed or self-employed. You can roll it to an Individual Retirement Account. Depending on where you roll it, you can have a diversified portfolio of funds or low-cost ETFs, in a variety of stocks, bonds, commodities, real estate, etc.
The OP mentioned a fixed annuity. There are no high fees on a fixed annuity. You may be thinking of a variable annuity, which are notorious for high fees.
No need to go off on me. I just wanted to let you know that you can’t just deposit funds into a 401(k). Believe me, I won’t bring it up again. You obviously know all about it.
True. I actually had talked to a guy about the rollover in early May. I was so afraid of what Obama was trying to do then I didn't think the market would go anywhere. I am still trying to figure out what people are "investing" in.
Sorry. A little touchy today. I do know what the rules are. Thanks for trying. (:^0
Apology accepted. I’m unemployed too, so I know a little about what you’re going through. Keep the faith and good luck.
‘unique’ stated “an annuity with an insurance company”. This almost always involves commissions and fees, as well as profits to the insurance company.
Unique also said “fixed-rate for life - joint lives annuity.”
That’s a fixed annuity. You don’t pay a commission or fees on a fixed annuity. The insurance company pays the commission to the agent. Fixed annuities are quite a bit different than variable annuities.
I know this stuff. I’ve been involved with annuities and insurance companies for 15 years.
Cash in, buy lottery tickets.
I moved some of my IRA money from a Ginny May fund to an annuity. I was going to put it in laddered CDs just to preserve the principal while earning a small return. I put it in the annuity instead of CDs. I still preserve my principal against losses if rates spike, but will also earn higher interest if rates do go up. My rates adjust each year but can’t go lower than where they started. State Farm payed all its obligations throughout the Great Depression so I feel the investment is as safe as moist. I realize I already had tax deferral in the old IRA, but I still have it with a floor under my principal but no cap on rate increases. I think it is a great place for half the fixed income portion of my retirement funds.
Don’t remove your money from the 401 unless you roll it over into an IRA. You can keep in in money market if you like but I suggest you put it in either a treasury money market or in FDIC money market. There are other options later but you should protect your principal first.
Principal guaranteed anuities usually require you to renew your annuity after 10 years and then again every 10 years. Be careful that this is what you want to do before signing on the dotted line.
The way your post is phrased, you are not a sophisicated financial investor. Nearly all financial advisors are salemen or women first and fiduciaries second (or third). Trust is critical.
I know advisors who sell only anuities and believe in them completely. There are others (like me) who wouldn’t touch them with a 10 ft poll.
You are looking for someone who is not committed to one asset allocation but professes to preserve and grow captial in both bull and bear markets.
They don’t have to be the most perfect market timers but if they can preserve your capital during the coming massive market pullback, then they will have earned their fee.
Good luck. Everyone will need it.
Dumb. Dumb. Dumb.
Right. Right. Right.
There are other choises.
Accurate info. BUT there is a lot more to the equation.
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