Comments on: How an Immediate Annuity Payout Really Works

By: Neal Frankle

Neal Frankle — Sat, 17 Sep 2011 20:40:53 +0000

If you invest $1 million with a ten year payout, the amount would depend on the interest rate prevailing at the time. The tax would only be levied on the amount above your principle. So, if you receive $140,000 a year, $40k would be interest and reported by the IRS. Nothing is risk-free. Your money is guaranteed by the insurance company. If you’d like actual quotes, contact me and I can get you real numbers. http://wealthpilgrim.com/ask-neal-a-question/

By: clay white

clay white — Sat, 17 Sep 2011 18:01:02 +0000

If I invest 1 million dollars in a annunity with a 10 year payout, what type of a monthly payment could I expect and what are the tax liabilities, if any. Is an annunity risk free, guaranteed !! By whom?

Thank you.

By: Neal Frankle

Neal Frankle — Sun, 31 Jul 2011 06:27:55 +0000

Once you “annuitize” the payments are fixed and can’t be changed. You can’t select a variable payout as you’ve asked about.

By: mike olson

mike olson — Sat, 30 Jul 2011 18:26:17 +0000

If I have a 100,000 annunity once I begin the payout and I choose say 15 years, do I have the choice of payment plan, say 15000 first 5 years 10000 thereafter or must I chose a time frame with exact amounts?

By: George kennedy

George kennedy — Thu, 10 Mar 2011 17:08:46 +0000

My dad is 84 and we had to put him in a skilled nursing facility. He resides in FL. where he owns a home and has a tax deferred annuity. We are trying to get him on Medicaid because he can no longer be on his own he has Parkision and Dementia. He needs 24hr care. In Fl the house is exempt from Medicaid. We were advised to turn the tax deferred annuity into an immediate annuity and to set up a personal care account to pay the bills on the residence because we can’t sell it its included in a family trust. Any advice would be greatly appreciated