What other annuities are taxed deferred besides 401k? I am just wanting to put more towards retirement.

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Answered by Alex Bentley, Financial AdviserPRO+ in Pacific Palisades, CA
I actually believe in many cases that investing in very low cost index funds on a fully taxable basis yields better results than investing in an annuity. The reason is that the fees for an annuity can outweigh the value of the tax savings. | 09.29.14 @ 22:37
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:19
Answered by Kim Miller, CFP®PRO+ in Redmond, WA
Hi - if you are fully funding your 401k ($17,500 if you are under age 50, $23,000 if you are 50 or over) the next account you want to fund is an IRA - preferably a Roth IRA. You can fund an IRA with $5,500 below age 50 or $6,500 if age 50 or older. The combined 401k and IRA annual limit is as much as $29,500. If you can still do more, a taxable investment account is the next step. As the other adviser mentioned, it is more cost-effective to use index funds in a taxable account than a deferred annuity. The internal costs in annuities are very high in relation to other investment choices and the tax deferral isn't that valuable as the taxable portion of the withdrawals are taxed as ordinary income instead of the lower long-term capital gains rate. Max fund your 401k and IRA (preferably a Roth IRA) before considering other options. Good luck! | 10.01.14 @ 21:59
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:19
Answered by Winnie Sun, Financial AdviserPRO+ in Irvine, CA
This is the great thing about our industry, there are so many excellent ways to provide for retirement savings. Your intention for save more for retirement is admirable. Annuities can be an excellent way to supplement a 401k/IRA/Roth for retirement planning purposes. As mentioned above, they can come with higher fees, and more than that they come in so many different features and types that it is generally best to seek the advice of a financial advisor who understands them well. They can offer benefits that you will not find in just mutual funds and ETFs. If you'd like to chat more about this, please don't hesitate to reach out. | 10.14.14 @ 18:01
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:19
Answered by Pamela J. Horack, , CFP®PRO+ in Lake Wylie, SC
Annuities can be great vehicles for retirement savings when used correctly. One thing to keep in mind: an annuity is not an investment, it is a contract. Watch my short video on annuities titled Six Ingredients to an Annuity to help give you a taste of the basics. https://www.youtube.com/watch?v=9tVCGiE7mUk | 01.16.15 @ 20:08
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:19
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Answered by John
In my opinion you should be looking at mutual funds and not annuities. If your employer is matching - always go that route first - it's free money! But in a mutual fund, not an annuity. | 01.16.15 @ 21:23
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:19
Open a home-based business and receive a plethora of tax breaks, plus the ability to open up a SEP, where for the self-employed, the maximum contribution to a SEP-IRA is the lessor of $52,000 or 25% of your ‘eligible compensation.’ Cha-ching!

There are also indexed annuities with little-to-NO-fees (Athene's Performance Elite has averaged about 7% over the last 10 years), that will allow you to participate in market gains, yet have the downside protection from market losses.

Always consult with a professional before making any decisions. I'm here to help...just reach out.

Mike Zaino
www.TZGFinancial.com | 04.02.16 @ 17:01
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:19
Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Using a tax deferred Annuity can work towards your retirement. As an Investment Manager, I also look at the other side of the equation-What is the Investment giving you in return or what is the ROI?

On Annuities, the ones that our folks use (many do not use Annuities) are Income only. Reason being is they are simple and boring-no contribution rate,points, caps, or spreads (you can add these if you feel the need).
Here is a simple example;
Single, 60 yr old retiring in 1 yr. Contribution $100k- Gets $5,500/yr for life or 5.5%
Pro-5.5%/yr lifetime income
Con- giving up $100K
Rates vary. use the link for more information
http://lifetimeincome.com/annuity-comparison.php

By itself few people can live on $5,500/yr. To be fair $100K does not get you very far either. Unless we use it for cash flow.

We can take that same $100K. Invest it in one of our cash flow strategies and generate more than 20%/yr or $20K/yr in cash flow. This is not a fixed amount and there are various ways to do it. In any given 12 month period, the downside is receiving only 20%. The upside is receiving over 30%. On a monthly basis, some months may be $0 or negative. We try to set this up with a yearly advance draw down. Meaning, if you need 20K and you can wait 12 months for it. We set aside 20K in your account within the 12 month period. The $100k plus any other profit is generally reinvested to get you the next 20K in 12 months. We can customize both the amount and time frame. Obviously, we both need to be on the same page and the terms must be feasible for both of us. We use discretionary authority.

We are not fans of growth Annuities. They do give peace of mind and many folks enjoy their benefits. Keep in mind that as an Investment manager, we can far exceed the ending cash balance of any growth Annuity.

Using the same $100K
An Annuity with a 10% growth rate means very little by itself. Add back in the contribution rate (at 50%, only half of your $$ are working for you thus reducing the rate to 5%). Next are points, caps, & spreads which further reduce your return.

Always look at the bottom number. $100k growth Annuity at 10% that doubles to $200k in 24 yrs (assuming you do not make early withdrawals or borrow against it which adds more fees) is equal to a CAGR (Compound Annual Growth Rate) of 3%/yr. Yep-now subtract the rate of inflation?

Using the same $100k, an Investment Manager can turn this into $1.6 Million during the same 24 yrs. Which do you prefer? Those of you with questions are welcome o contact us directly for more information. No obligation. Lastly, we monitor our clients on a yearly basis. Any year that does not meet our mutually agreed upon terms results in us receiving no compensation. This is our value proposition. Keep more of your $$ in your Owners Equity pocket.

It's not what you make, It;s what you keep that determines your lifestyle. | 04.03.16 @ 00:10
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 00:19
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Answered by

Alex Bentley
Alex Bentley, Financial AdviserPRO+ in Pacific Palisades, CA

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