Should I Purchase an Annuity With Part of My Portfolio?

Ready For Retirement

James Conole, CFP®

Investment Planning, Bonds, Education, Stocks, Cash, Business, Dividend Investing, Retirement Planning, Retirement, Investing, Tax Planning

5 • 706 Ratings

🗓️ 15 June 2021

⏱️ 30 minutes

🔗️ Recording | iTunes | RSS

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Summary

Our topic on this episode of the Ready for Retirement podcast is about annuities and whether or not you should have one in your portfolio. Questions answered: What do I need to look for when determining if an annuity is right for me? What are the benefits and cons of including an annuity in my portfolio? What strategies can I implement to improve my financial future? What is the best approach for my individual situation? Are you ready to start focusing on the things that truly mat...

Transcript

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0:00.0	Discover the tips and strategies that will help you achieve your retirement goals.
0:09.3	I'm your host, James Canole, and this is the podcast dedicated to helping you retire well.
0:14.6	It all starts right here of Ready for Retirement. I'm your host,
0:30.3	James Knoll. We have a listener question today that we're going to go through and take a look
0:35.0	at something that we have not yet actually discussed on the podcast. So this will be a good episode. Here is the question. The question says,
0:41.7	Hi, James, been listening to your podcast and recommending it to all my family and friends. Thank you so
0:46.4	much. Well, thank you so much. I really appreciate that. It goes on to say my wife and I are both 52.
0:51.3	My wife wants to retire at 60 and myself at 65. We gross roughly $500,000 per year.
0:57.6	Annually, we contribute to a SEP IRA and to a 401k, and the combined contributions are $100,000 per year.
1:03.9	We are living in New York and we would like to retire at 65. We both have self-employment income
1:09.6	as well as a salaried position with full benefits. We've been maxing everything out since our early 20s. We both have self-employment income as well as a salaried position with full benefits.
1:11.6	We've been maxing everything out since our early 20s. We have around $3 million in retirement savings between 401k's, 403B, set by IRAs,
1:19.6	and around $750,000 in cash accounts, $500,000 of which is tied up in stocks.
1:25.6	We also have tax-deferred annuity with a spousal benefit by predential, which has a value of $200,000 of which is tied up in stocks. We also have tax-deferred annuity with a spousal benefit
1:28.9	by prudential, which has a value of $200,000. And we are supposed to have a guaranteed
1:33.8	income increase of 5.5% annually from this policy. We both have term life policies. I have,
1:40.4	in addition to whole life policy in long-term care. We already have our state planning.
1:44.5	The house has a small mortgage left, $60,000, which will be paid off in a year. And we also
1:49.5	have a small New York City apartment with $180,000 mortgage left, which we plan to pay off in
1:54.9	five years or less. When we were to retire, we will sell the house, current market value of around
2:00.1	$1.3 million, and keep the
2:01.3	apartment, which has a value about 388,000, and move to California to be closer to family.
	...

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