| Favorite team: | Mississippi St.  |
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| Number of Posts: | 160 |
| Registered on: | 8/21/2013 |
| Online Status: | Not Online |
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re: Pros and cons of fixed index annuities.
Posted by Diggs on 3/22/22 at 7:34 pm
As a FA.... a very rare set of circumstances would make fixed rate annuites a suitable investment choice.
To protect principal you are sacrificing:
(1) Upside potential
(2) Purchasing power - even with a COLA rider... inflation is going to eat into it.
(3) Liquidity - high surrender charges
If a client was risk averse, had a sizeable retirement, and wanted to place a portion of the fixed income allocation into a fixed index annuity then it MAY be suitable. Rising rates are going to make the bond market a mess for the next few years.
That's a lot of IFs. The advisors that love to sell these things typically have a Series 6 and not a Series 7. High commississons make these a favorite.
The biggest risk perceived risk is the market when in reality it is a 30+ year retirement (you or spouse) that sees you outliving retirement savings.
In my humble opinion, focusing on high quality dividend paying companies provides inflation-protected income and asset appreciation without locking up liquidity.
To protect principal you are sacrificing:
(1) Upside potential
(2) Purchasing power - even with a COLA rider... inflation is going to eat into it.
(3) Liquidity - high surrender charges
If a client was risk averse, had a sizeable retirement, and wanted to place a portion of the fixed income allocation into a fixed index annuity then it MAY be suitable. Rising rates are going to make the bond market a mess for the next few years.
That's a lot of IFs. The advisors that love to sell these things typically have a Series 6 and not a Series 7. High commississons make these a favorite.
The biggest risk perceived risk is the market when in reality it is a 30+ year retirement (you or spouse) that sees you outliving retirement savings.
In my humble opinion, focusing on high quality dividend paying companies provides inflation-protected income and asset appreciation without locking up liquidity.
1
re: New Job-Rolling pension payout and 401k
Posted by Diggs on 2/16/22 at 12:12 pm
72t pretty much offsets Rule of 55.
re: New Job-Rolling pension payout and 401k
Posted by Diggs on 2/15/22 at 8:54 pm
Are you planning on self-directing your IRA?
It was discussed a week or so ago regarding the pros/cons of 401ks and IRAs. Essentially boils down to IRAs offer far more flexibility but 401(k)s often have the ability to take a loan out against.
It was discussed a week or so ago regarding the pros/cons of 401ks and IRAs. Essentially boils down to IRAs offer far more flexibility but 401(k)s often have the ability to take a loan out against.
re: 401K Termination/Conversion
Posted by Diggs on 2/9/22 at 9:56 pm
quote:
You can access your 401k assets penalty free if you leave your employer for any reason at age 55 or later. You have to wait until 59.5 to get your IRA assets without penalty.
Not exactly.
401ks still have to allow early withdrawals in the plan documents. A fair amount have a clause that prohibits withdrawals prior to normal retirement age, which is usually set at 59 1/2.
IRAs you can set up a 72t schedule (5 equal payments prior to 59 1/2) and withdraw the money penalty free.
re: Owing Taxes - Can I try itemizing deductions?
Posted by Diggs on 2/7/22 at 9:07 pm
Sorry I don't buy the only wealthy people itemize.
I am firmly middle class (spouse and I are W2 employees) and our itemized deductions always exceed the standard. Get with a reputable CPA and make sure you are choosing the best route.
I am firmly middle class (spouse and I are W2 employees) and our itemized deductions always exceed the standard. Get with a reputable CPA and make sure you are choosing the best route.
re: 401K Termination/Conversion
Posted by Diggs on 2/7/22 at 8:58 pm
quote:
Are there any income limits with a traditional IRA like with a Roth?
Yes & no. Phaseouts start at $129,000 for singles and $204,000 for married filing jointly.
Anyone regardless of income can still currently do a backdoor ROTH, fund an IRA with after-tax contributions and covert. It's a lot less messy if you don't have other pre-tax money in other accounts.
If your 401k allows after tax contributions AND in-service withdrawals you can rollover massive amounts into a ROTH every year ($61,000 - employers contributions - $20,500 max employee contribution).
re: 401K Termination/Conversion
Posted by Diggs on 2/7/22 at 8:35 pm
401(k)s are more restrictive in security selection and the ability to withdraw.
IRAs have way more investment choices, several more ways to access the money should particular hardships occur.
Expenses can vary between each. If you are DIYer then IRAs can be very cheap. An advisor is going to cost more but still likely less than the average 401(k) plan. Just be aware of your own limitations if your deciding which IRA route to take.
IRAs have way more investment choices, several more ways to access the money should particular hardships occur.
Expenses can vary between each. If you are DIYer then IRAs can be very cheap. An advisor is going to cost more but still likely less than the average 401(k) plan. Just be aware of your own limitations if your deciding which IRA route to take.
re: Coming out of graduate school with $100,000+ loans, what's my next step?
Posted by Diggs on 5/24/15 at 5:02 pm
I'm in a similar boat.
Just graduated with 160k in student loans. Got a job with 100k base and up to 30k in commissions. All benefits paid for as well.
Hubby is working on his Master's, but also has a part time job making about 25k a year. Total debt for him will be around 45k but will make at least 60k once graduated.
No car notes/house notes. Should we rent while paying this off?
Just graduated with 160k in student loans. Got a job with 100k base and up to 30k in commissions. All benefits paid for as well.
Hubby is working on his Master's, but also has a part time job making about 25k a year. Total debt for him will be around 45k but will make at least 60k once graduated.
No car notes/house notes. Should we rent while paying this off?
re: SEC Baseball Scoreboard / SEC goes 37-6 Overall in Week #1
Posted by Diggs on 2/15/15 at 2:00 pm
Nm.
re: Toddler eaten by pig in China
Posted by Diggs on 11/13/14 at 11:47 am
I'm with you on this.
Seems like extremely poor parenting. Animals are animals... they are going to act off instinct.
Don't have a problem with killing the pig... but no need to tie it up to a tree like that.
Seems like extremely poor parenting. Animals are animals... they are going to act off instinct.
Don't have a problem with killing the pig... but no need to tie it up to a tree like that.
re: NFL Week 11 Fan Duel Buys
Posted by Diggs on 11/12/14 at 3:37 pm
His volume is there. Just needs a couple more pieces to fall into place. Doesn't help that he's faced some stout run defenses.
I agree that is bound to happen at some point.
I agree that is bound to happen at some point.
NFL Week 11 Fan Duel Buys
Posted by Diggs on 11/12/14 at 3:06 pm
Jordan Matthews @ $5,500 is a steal. Philly will be playing catchup all night with GB.
Any others sticking out?
Any others sticking out?
re: *DRAFT IS TONIGHT AT 7PM* Fantasy Football: Cyber Fight for the Landmass Edition
Posted by Diggs on 10/24/14 at 4:25 pm
Because I'm pretty sure there should be a limit on the square forehead footage allowed on a team.
You sir are exceeding it.
You sir are exceeding it.
re: *DRAFT IS TONIGHT AT 7PM* Fantasy Football: Cyber Fight for the Landmass Edition
Posted by Diggs on 10/24/14 at 3:46 pm
Solid trade. :cheers:
Been needing a good TE, and here's hoping Calvin returns to his old ways in Week 10.
Been needing a good TE, and here's hoping Calvin returns to his old ways in Week 10.
re: Be Honest MSU Fans-
Posted by Diggs on 10/19/14 at 9:39 am
Not worried a single bit.
You're not even the 10th best program in Florida.
You're not even the 10th best program in Florida.
re: Mullen or Freeze to Michigan or Florida?
Posted by Diggs on 10/5/14 at 2:44 pm
Does the current state of the LSU program increase or decrease corndog sales?
re: Mullen or Freeze to Michigan or Florida?
Posted by Diggs on 10/5/14 at 2:41 pm
quote:
Cockopotamus
:lol:
Based on what?
re: Are the elevators working properly at Jordan-Hare?
Posted by Diggs on 10/2/14 at 9:09 pm
Already planning your second half exit??
re: Get Ready MSU
Posted by Diggs on 9/24/14 at 9:43 pm
LSU fans are the worst on this site.
Need to move the Rant to a more reasonable location like the Spirit or ED.
Need to move the Rant to a more reasonable location like the Spirit or ED.
Big Ben or Bortles (Week 4)
Posted by Diggs on 9/24/14 at 4:12 pm
Streaming QB's this year. Having a tough time with who I should start in Week 4.
Big Ben vs TB.
Bortles @ SD.
Big Ben vs TB.
Bortles @ SD.
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