What to do with a big windfall?

Mandrake · #1 (**permalink**) 12-19-2008, 07:03 PM

Going to get a seven figure payday (which is due to hard work over a decades time) concerned that if I take this big cash chunk in - the tax man will give me a big haircut. My thought was maybe to specify that instead of it going to me directly, it instead go directly into an annuity from which I could then receive a lifetime income. Any thoughts as to if this is deeply flawed, and I'll get a big tax hair cut anyway, or is there a better idea out there? I do not want to do a 1031 exchange, I need current dependable income.
Thanks!

nodebt99 · #2 (**permalink**) 12-24-2008, 12:42 AM

Quote:

Originally Posted by Mandrake

Going to get a seven figure payday (which is due to hard work over a decades time) concerned that if I take this big cash chunk in - the tax man will give me a big haircut. My thought was maybe to specify that instead of it going to me directly, it instead go directly into an annuity from which I could then receive a lifetime income. Any thoughts as to if this is deeply flawed, and I'll get a big tax hair cut anyway, or is there a better idea out there? I do not want to do a 1031 exchange, I need current dependable income.
Thanks!

If you were in Arizona I'd refer to my friend who is a MetLife rep. Still, I'd recommend MetLife. There are products out there (some new variable annuities) that guarantee a minimum rate of return (6% is one I've heard) but they offer the ability to get higher rates once market does better, which it has to do eventually. And you can still withdraw a certain amount annually.

The trouble with an immediate annuity is you are getting paid back mostly your own money. They pay very little interest.

Hope that helps.

GarySpicuzza · #3 (**permalink**) 12-27-2008, 10:34 PM

nodebt99 wrote:

Quote:

If you were in Arizona I'd refer to my friend who is a MetLife rep. Still, I'd recommend MetLife. There are products out there (some new variable annuities) that guarantee a minimum rate of return (6% is one I've heard) but they offer the ability to get higher rates once market does better, which it has to do eventually. And you can still withdraw a certain amount annually.

The trouble with an immediate annuity is you are getting paid back mostly your own money. They pay very little interest.

There isn't any Variable Annuity, Traditional Fixed Annuity or Fixed Indexed Annuity that GUARANTEES A 6% minimum rate of return on the Accumulated Value. The actual cash in the policy.

None.

You are confusing the INCOME ACCOUNT VALUE with the Accumulated Value.

Yes, many companies will guarantee 6% or more on the INCOME ACCOUNT VALUE.

The INCOME ACCOUNT VALUE is a mathematical formula ONLY the insurance company uses to calculate the maximum lifetime payout regardless of market conditions or actual interest earnings.

NOBODY buys an "Immediate Annuity" without a compelling reason.
I've sold exactly two (2) in 24 years in the business.

Variable Annuities are a bloated pig with lipstick sold by Broker-Dealers and their certified clueless clown Registered Representatives.

Debt Consultant · #4 (**permalink**) 03-22-2009, 01:11 AM

Quote:

Originally Posted by Mandrake

Going to get a seven figure payday (which is due to hard work over a decades time) concerned that if I take this big cash chunk in - the tax man will give me a big haircut. My thought was maybe to specify that instead of it going to me directly, it instead go directly into an annuity from which I could then receive a lifetime income. Any thoughts as to if this is deeply flawed, and I'll get a big tax hair cut anyway, or is there a better idea out there? I do not want to do a 1031 exchange, I need current dependable income.
Thanks!

I have a friend who's with Mutual of Omaha. I can refer you to her if you'd like. She's one of the tops in her field and has all kinds of strategies and products that will help you with preserving your new wealth. Congrats!

theoracleonline · #5 (**permalink**) 03-29-2009, 05:00 PM

Buy gold, as economic activity declines the value of gold will rise as well as commodities.

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