Should You Have an Annuity Inside an IRA?

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Should you have a variable annuity inside of an IRA? Absolutely not, learn more about why this is not an investment strategy you should be employing.

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Should You Have an Annuity Inside an IRA?

  1. 1. Mullooly Asset Management Podcast October 30, 2013 Mullooly Asset Management October 2013
  2. 2. An Example  Client of Mullooly Asset has an annuity she wants to surrender  Her CPA suggested NOT surrendering Mullooly Asset Management October 2013
  3. 3. The Facts Client began with $205,000  Received $5,000 each year as required minimum distribution – 11 years x $5,000 = $55,000  Should be $150,000 today if annuity earned nothing  Today’s value : $87,000 Buried in the annuity contract is this gem: Annual Management Expenses - 2.95% Mullooly Asset Management October 2013
  4. 4. The Annuity is Inside an IRA If you have an annuity within an IRA and are age 59.5:  You can surrender that annuity  (In most cases) surrender charge will be waived because it is considered an IRA distribution  You will have 60 days to deposit the funds into another IRA Mullooly Asset Management October 2013
  5. 5. Annuities and IRA’s Don’t Mix  There are no benefits in having a tax deferred investment (the annuity) inside of a tax deferred account (the IRA)  By doing so you may also be limiting what investments you can own  It also probably increases the expenses of the IRA by generating fees or commissions for the broker Mullooly Asset Management October 2013
  6. 6. None of the securities mentioned in this (or any) podcast or video represent past specific recommendations of Mullooly Asset Management. This video is NOT a recommendation to buy or sell any of the securities mentioned here. If you’re relying on a podcast for investment advice, you are likely making a huge mistake. We strongly urge our listeners to consult with their investment advisor before they make a decision to buy or sell any investment. Mullooly Asset Management October 2013
  7. 7. Mullooly Asset Management, LLC support (at) mullooly (dot) net 732-223-9000 www.mullooly.net Mullooly Asset Management October 2013

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