The HUGE Mistake That 99% of Annuity Owners Make

[@52msdiane]

Thx so much! I am 60 now and trying to figure out how to get out of my Prudential annuity. No surrender charges Ive had it 28 years. But I need something safe and dont need the income yet as Im still working. The company I work at offers zero retirement. Any suggestions? The fees were outlandish with Prudential... Ugh. Thank you!

[@DavidMcKnight]

Go to davidmcknight.com and we can take a look at what you have.

[@baybay7898]

Should get out asap. We had one and moved out 15 years ago. Invest yourself and you will come out ahead.

[@adrianaanestis5866]

I have fixed annuity amd it offered a 30% bonus for 10 yr term. I am 48. I usee money from my old 401 k to open the annuity. I was concerned about paying higher taxes on that distribution in 10 yr plus.

[@DavidMcKnight]

You may want to check into the Roth conversion provisions of that annuity.

[@gg80108]

does product like that really exist? @@DavidMcKnight

[@curiouscurious6558]

great post and great points, and its like taking a bath with your socks on, annuities are tax deferred anyway.

[@Rick-g1i]

At age 60, would you recommend purchasing one of these FIA's that has bonus, as an enticement way to pay income taxes, from within the FIA Annuity? It seems as if the upfront bonus, just lowers the compensation rates. And, would you favor any of the new Buffer-etf's (like 100% downside, ~10% cap), as a better investment vehicle for the ROTH conversion? Thanks.

[@DavidMcKnight]

Bonuses come at a cost. Sometimes it makes sense but not always.

[@BigPoppa-t3z]

Let me tell you about any bonus within an annuity I'm surprised the channel owner didn't put a big fat stop sign. He did say it comes with a cost. A bonus is MONOPOLY MONEY. you are not getting anything extra no matter what your so called annuity guy your working with says. At best your just getting some or all your money back. No extras unless a skinny chicken dinner he promised you is included.

[@BigPoppa-t3z]

​@@DavidMcKnightit doesn't make sense it's a rouse.

[@yodakbarrabucci2582]

What’s the best investment of 15K if I don’t touch it for 10 years ? Thanks.

[@DavidMcKnight]

S&P 500 index fund.

[@yodakbarrabucci2582]

Thank you.

[@dj3114]

@@DavidMcKnight Still taxes on that, and based on what he said, the govt gets half. So, according to him - nothing is safe and you're screwed no matter what. IMO, I don't believe that politicians want to commit political suicide for the majority of Americans by doubling the tax rates. Possible?, yes. Probable, no.

[@Joe-lk6oc]

62 yrs old and my wife and have 2 DIA that will begin paying $50K yearly beginning in Aug 2027. We also have $634K in 1-5 year CDs and another $13K in a ROTH. I get $23K yearly in SS. What should our tax plan be in this scenario?

[@jedwards712]

Obviously if taxes go up you will pay more on IRA withdrawals. It doesn't really matter if its an annuity inside the IRA or a portfolio of stocks.

[@DavidMcKnight]

Unless you do a piecemeal internal Roth conversion on the annuity before taxes go up.

[@MrCharlesEldredge]

I got some good information from this video. Thank you.

[@davidmcknight8201]

You're welcome! Thanks for watching!

[@joemccarty2061]

Does the P.I.R.C. option only make sense for those who currently don’t have enough money in their Roth to fund their FIA? I do, so does it make more sense for me to just use my Roth money to purchase a FIA?

[@davidmcknight8201]

I'd need to know more about your entire situation to give you a recommendation, but certainly if you have already have plenty of money in your Roth IRA, you could simply contribute the amount to the FIA necessary to bridge your income shortfall and call it good.

[@johngill2853]

Know matter how you take your income from your IRA it will be provisional income. Does matter annuity, yearly or monthly distributions. The question is will you pay more or less taxes then you did to get it in there

[@DavidMcKnight]

But with a bit of planning you can keep your provisional income low enough that your SS doesn’t get taxed.

[@johngill2853]

@@DavidMcKnight yes,but it's what gives me most money after taxes in the long run. I'll heavily spend down traditional before I collect social security. My tax rate looks to be 5% after I start social security (even if rates double its only 10%)

[@DavidMcKnight]

@@johngill2853 everyone’s different. That may be the best strategy for you.

[@johngill2853]

@@DavidMcKnight I agree with that everyone is different but those tax years before social security can be lucrative for many for lowering your traditional accounts

[@BigPoppa-t3z]

In order to keep your SS under the threshold of 25 you need mega non qualified stuff to do it. Alot of people DONT next thing get what you can to stay if you can understand it or withing that 25-34k part as single joint different I think.

[@johngill2853]

I do plan for my taxes to double as worse case scenario. My estimated taxes in first 6 years of retirement is 9% (5% after that). If it goes to 18% I still paid less taxes than I did while working.

[@DavidMcKnight]

If you were in a high marginal rate during your working years, Roth conversions probably won’t make sense.

[@oldporkchops]

Assuming tax rates stay the same, can taxes in retirement be actually lower when you'd lose most of the deductions and credits for kids and business activities?

[@DavidMcKnight]

@@oldporkchops sure, if your income goes down enough.

[@Sweet..letssurf]

100% your income should drop there for so will your taxes

[@StrategicWealthStrategies]

As always great information David!!

[@davidmcknight8201]

Thanks!

[@joemccarty2061]

I’m planning on purchasing a FIA. I am able to use Traditional or Roth money to do so, but am confused as to which makes the most sense. If I use my Traditional IRA money, my FIA lifetime income will be taxed for the next 30 years, but my Roth will grow in the market tax-free for just as many. Is there a definitive right financial decision here, or does it really just come down to what tax rates are going to be in the future? It seems like both options have pros & cons. I hate to guess or gamble with such a big decision. Any clarity is appreciated.

[@BigPoppa-t3z]

I would never use a Roth. You already paid your tax on it? Your gonna go from not paying taxes to paying taxes again,?

[@jmg6153]

So I think I made a big mistake and bought into a TA Max Income variable annuity with 7% growth on the income withdraw base, but didnt realize the principal amount if i surrender it has no guarantees. Fees are way more than I realized. Ok, learned my lesson. Im 63, retired, have a pension need additional income equal to my pension amount, and 95% of my retirement savings are pre-tax in multiple IRARollovers including the TA annuity. What would you suggest to either surrender it or convert it to something else? Heard about one that offers 16% bonus to convert it to theirs, which would more than make up for the principal I lost, and is a fixed index annuity with 0% loss of principal in down market, but tied to S&P less 3% in up market base in participation rate. Would live your thoughts. Thank you!

[@DavidMcKnight]

I might recommend heading over to davidmcknight.com and clicking on the work with David button. It’s hard to give out a recommendation without knowing the whole picture.

[@lowridinpacker]

No no no. Don't you have an income rider? The only reason to buy those annuities is for the income guarantees. Then you must exercise the income rider at 65 for life. it is longevity insurance plain and simple. Otherwise pull the money and put it in low cost index funds. If you have an income rider the fees mean nothing. If you don't roll it to an annuity that does or pull the money out. You need to read the contract. Also, bonuses are for the stupid. It only applies to the guaranteed account for the rider. Btw, watch all the videos from Stan the annuity man if you want to learn more. I don't agree with everything he says, but he gives pretty good advice

[@jedwards712]

I'm very familiar with Transamerica Max Income, it's not bad if you actually need and want guaranteed income for life. I'm finding that a lot of clients just wanted downside protection at a lower cost. You can do a tax-free exchange to something like Allianz Index Advantage which only has fees of 1.25% vs 2.5% - 3% with TA income max. They have an option which gives you 140% of the S&P500 return with 10% downside protection, or 100% of S&P500 return with 20% downside protection. You also get a guaranteed death benefit equal to your contribution. LMK if you have questions.

[@gg80108]

I got a bonus on my premium but was soon clawed back with no Charge RMD withdrawals. I do agree fees dont matter if you bought in for the income rider.@@lowridinpacker I did notice something good. As I made RMD withdrawals the guaranteed income payment still went up, a little. The way I figure it, the least premium I have in the deal when the I turn the rider the faster I get my premium back.

[@Brockdorf]

Studies and surveys conducted by financial institutions have indicated that between 40% to 60% of annuities may be held within tax-deferred accounts.

[@DavidMcKnight]

Link? That number seems extremely low to me.

[@BigPoppa-t3z]

4 out of 5 dentists say use this toothpaste. Your teeth will be white. Listen. Your the one that makes sure ur in the 50 percent annuity percentage. Technically 60 percent is stretching it. At least for Qualified Annuities. Their are acct managers out there that will put you in way too much annuities. If your younger. Don't! If your old like me 65 plus it's different.

[@walterp8697]

Thanks! For video. What about purchasing many small policies eg 100k policies and this allows Roth conversion later. Ie transfer the annuity in an Ira to Roth later in life when and if money available?

[@davidmcknight8201]

That works too, it's just a little cumbersome managing all those different statements, etc.

[@lizfindley122]

I have gross earned income of $46,000 a year, my husband draws Social Security income of $1000 a month. I am considering taking a $15,000 distribution from my fixed, 5:23 annuity, that I wish I didn’t have. It does not have the Roth IRA conversion capability within it. I am also thinking about ending the annuity and paying the penalty of approximately $8000 to avoid the future taxes of what it does to Social Security if I reinvest what I remove from the account whether it be the 15,000 or the full annuity 158,000 what is going to happen to taxes this year and to my husband Social Security?

[@BigPoppa-t3z]

Every dollar of that 158k is taxable. Remember this unless it's non qualified then only a portion. Pay now or later?

[@rhonda205]

HI Dave, can an Annuity be entered into a irrevocable defective grantor trust?

[@DavidMcKnight]

Intentionally defective grantor trust?

[@rhonda205]

I dont know, it just reads defective grantor trust@@DavidMcKnight

[@mattUniversityofMinnesota]

Hello - can I trade options with my balance WITHIN my annuity balance? Thanks.

[@DavidMcKnight]

I’ve never seen an annuity that allows you to do that.

[@iamwell5654]

Yes, taxes may go up. However, in our retirement years, we would pay relatively less taxes than those who are working.

[@DavidMcKnight]

You will have fewer deductions in retirement and you may be spending more than you think.

[@BigPoppa-t3z]

Non qualified annuities big tax break.

[@habbadabbado5765]

Commissions, fees and charges are too high! You can create an income stream with the right mix of stocks and bonds.

[@shelleycharlesworth5177]

So I have about $300,000 in an annuity……my late husband and I began contributing to this more that 30 years ago. I’m 76 and they -Venerable-keep offering me a certain amount per month for the rest of my life. Let’s say I start taking that amount now-it’s about $2,000 a month-and I die in 3 years-will my beneficiary keep getting that Amount for 7 years past my death?

[@DavidMcKnight]

Depends on the type of annuity.

[@Monipenny1000]

@@DavidMcKnight are you saying that there are types of annuities that will keep your principle after death of the annuity holder(s) if their money has not run out? If so, why would anyone buy into that annuity?

[@davidmcknight8201]

@@Monipenny1000 With a single premium immediate annuity (SPIA), you hand over a chunk of money, say $500k, and they guarantee you'll get an annual income every year until you die, say $40,000 per year. If you die after 1 year, they keep your money. Why would anyone do this? Because it's the least expensive way to make sure you never run out of money. To generate $40,000 per year through the stock market approach, you'd need to accumulate $1 M. But that's the risk with the SPIA and that risk does give people heartburn. Same concept as Social Security, though. If you pay in your whole life, and die after 1 year, all your contributions go to pay someone else's Social Security.

[@steves3234]

What if the annuity was bought with after tax dollars? I would think only the divideds and interest earned is taxable?

[@DavidMcKnight]

Correct, just growth. This video more applies to pre-tax dollars.

[@steves3234]

@@DavidMcKnight thank you!

[@jorgevelasquez9955]

Ho much can you convert to Roth per year?

[@DavidMcKnight]

No limit.

[@gg80108]

Wrong? If you buy an annuity in deferred account your payments can satisfy the RMDs, which you would of had to take payouts and pay ordinary taxes on anyway. Two birds with one stone. It was bought with money that was set aside for the long term your IRA money, so your not locking any of your spending money away!

[@GinaBrittCo]

What if we are 37 and looking to reach barista FIRE (financial independence retire early) with part-time work? The problem I am having is using a Roth for retirement when I want to retire earlier than the 59 1/2 age.. A lot of the benefits and strategies do not apply : (

[@DavidMcKnight]

You could do a Roth Conversion and have access after the 5-year waiting period.

[@kinggeek1960]

@@DavidMcKnight they can also use "contributions" without issues / penalties

[@DavidMcKnight]

@@kinggeek1960 true!

[@BigPoppa-t3z]

Mr 37 year old you are right but you have the most valuable time in the financial industry. TIME. Save your ass off Roth it up in qualifying funds to keep taxes down.

[@Sweet..letssurf]

So pay tax now n not later

[@geoffreyshields2123]

What are your thoughts on an annuity created with proceeds from an IRA that offers a low interest loan from those funds that can be used to pay the tax burden from the distribution?

[@davidmcknight8201]

Sorry, not sure I understand the question.

[@michaeljrodriguez6791]

Great video, and I love all your work. What are your thoughts on taking out a 10yr SPIA and using the funds to pay for a Whole Life insurance policy also paid in 10 years.

[@DavidMcKnight]

What would be your goals for doing so?

[@johngill2853]

Your right I don't know how much tax I will pay in the future but I do know how much income I want in the future. I'm betting my total taxes will be lower because our tax system is progressive. And my contributions were at my highest marginal tax rate

[@DavidMcKnight]

Are you familiar with how high experts have predicted taxes will have to rise by 2030 to pay for SS, Medicare, Medicaid and interest on $53 trillion of debt? Just take a guess.

[@johngill2853]

@@DavidMcKnight "experts" on what future politicians would do? Raise taxes any more than a few percentage points on average people and the economy would suffer. Raise taxes on Uber rich maybe but people around the median retirement savings,no way (I guess I'm blessed I live in low-income part of the country) Raising taxes for Medicare and social security currently are heavily paid for by working people, do you think they will start taxing retired people more for those services?(most retired people really don't have money)

[@kinggeek1960]

@@DavidMcKnight please - there are many ways to solve for this - inc. corp taxes, inc. or remove the limit on SS tax for workers (as it caps out now), move the retirement age from 67 to 70 etc....

[@randolphh8005]

For those with modest income, the risk just isn’t that high in retirement. I totally disagree with the premise that old retired people of modest means will see their taxes rise substantially. In fact the risk of that is lower than the risk of Roth moneys being taxed in some way in the future for “the wealthy”. You totally ignore the fact that most retirees, especially those that that get the most benefit from annuities(which are those of modest means), are not far from the poverty line. There is no way that the tax system will get less progressive. Remember that tax rates have gone DOWN for the lower earners in recent years. The transfer of wealth to the upper class is not through taxes! A huge number of retirees don’t even file taxes unless it is to claim credits. Sure having after tax money is usually better, but getting there may not be.

[@guzzi95]

So tell me, Will you get none of what you paid in, back at the end of the year when you file for your taxes?

[@DavidMcKnight]

Not sure I understand. Though I live in Puerto Rico and don’t pay a lot of tax.

[@liz2959]

You are so right!

[@davidmcknight8201]

Thanks for commenting Liz!

[@israel-dj5iw]

how safe are annuitys

[@davidmcknight8201]

Extremely safe, but subject to the claims paying ability of the insurance company.

[@BigPoppa-t3z]

Have you ever played blk jack. It's better than that. I need to ask yourself two questions. What do you want the money to do When do you want it. Shop for the highest contractual payout Then check the companies claim payout rate. After you answer the first two questions than you proceed. Do want it for life or life with cash or to lower tax etc

[@garywood9119]

Does ATHENE offer piecemeal internal Roth conversion feature in their annuity products?

[@DavidMcKnight]

They sure do.

[@BigPoppa-t3z]

They are a great company too

[@jorgevelasquez9955]

What about the 5 year wait for a Roth conversion?

[@DavidMcKnight]

What about it?

[@johngill2853]

$24,000 a year does not pay 25% You should realize a big chunk will be at lower tax brackets like 10%

[@DavidMcKnight]

Who said this? You’re assuming the $24,000 was the only source of income in this example.

[@johngill2853]

​@@DavidMcKnighttime stamp 1:50 You would have to have a lot of other income to be in 25% tax bracket (and you should have mentioned that if that is your example)

[@DavidMcKnight]

@@johngill2853 I understand how progressive tax systems work and I’ve published several books through Penguin Random House that demonstrate as much. I honestly didn’t think I’d literally have to explain that this wasn’t their only source of income. You’re the first person to bring it up.

[@johngill2853]

@@DavidMcKnight most people wouldn't even know to ask. You don't think the average American actually understands the tax code. I see to much fear spread about taxes in retirement. And most people will not have a tax problem in retirement. Most people save very little for retirement

[@DavidMcKnight]

@@johngill2853 my videos aren’t targeted at the bottom 90%. They’re targeted at people who will likely fall under the scope of the IRS’s radar.

[@Gzluweez]

Lost me at doubling tax rates. More likely that SSI becomes means tested.

[@DavidMcKnight]

Wouldn’t even move the needle on the problem. It’s a $239 trillion problem.

[@AlexShantyOldLawModel]

The Bull prefers Nicer protected Annuities from DIY RLT Annuity Thieves.

[@DavidMcKnight]

Sorry you lost me.

[@BigPoppa-t3z]

Yes!!! You want your annuities to do the highest contractual agreement low fees no bull crap bonuses liquid and income that is the highest. And of course when you want it. Annuities rates are dictated by when your gonna die period.

[@dannyl6507]

Roth IRA/401ks are better because distributions dont count towards your provisional income.

[@DavidMcKnight]

Indeed!

[@johngill2853]

Better depends on how much you paid taxes to get it in there vs how much you paid in taxes to get. The overwhelming amount of people pay less in retirement

[@kinggeek1960]

@@johngill2853 depends on your RMD liability and your starting rate - if your 32% or higher - will end up paying the same or more

[@lowridinpacker]

Your advice about not doing an annuity in an IRA is just wrong. The main reason to buy an annuity is for income guarantees. You are going to pay income tax either way at marginal tax rates. I have 2 FIAs in an IRA. I will do Roth conversions with other pretax funds. Most of us that will be using annuities will be way above the level where we can pay no taxes. We have too much in pretax to evr convert it all. Roth did not come around until 1996. If you want to avoid taxes convert the funds to a Roth then buy the annuity. Not surprised you are selling a book. I saw that coming. Also, people have been saying taxes are going up since the 90s and they are lower than ever. On top of that my taxes will be lower in retirement no !after how much they raise the top brackets.

[@DavidMcKnight]

Thanks for your comment Ed. Would be interested in hearing your thoughts after reading my book.

[@TravisMcGee151]

@@DavidMcKnightYa, buy your book first lol.

[@codyemerson3525]

The interest (or earnings) on a non-qualified annuity are taxed as ordinary income but you won’t pay taxes on the premium or principal you initially deposited.

[@NotThisShipSister1]

@@TravisMcGee151 I love your Handle! Going out on the Busted Flush tonight? What great books ! John McDonald rules!

[@peanut62-cm8nw]

What about an Index Annuity? My banker is really pushing this

[@DavidMcKnight]

I’m a fan. I discussed these in my last book Tax-free Income for Life.

[@kinggeek1960]

@@DavidMcKnight it's called a FIA - Fixed Index Annuity and can be used as a bond replacement or if attaching an income rider - an income annuity which usually turns on later. An alternate strategy is a MYGA to SPIA. Hold the MYGA for 3-10 years then decide to convert / roll to a SPIA (immediate annuity)

[@gerard0l6569]

Theres ALOT of "BS" advice out there and MOST speakers cannot be trusted. HOWEVER this guy is MAKING 100% SENSE!!

[@davidmcknight8201]

Thanks Gerardo.

[@gerard0l6569]

@@davidmcknight8201 yes sir!

[@gg80108]

only in a limited way. this is not the only way.

[@gatsby6815]

Listen to Stan the Annuity Man as this guy is a fear monger.

[@DavidMcKnight]

Meaning you think taxes are NOT likely to rise in the future?

[@Blublod]

@@DavidMcKnight- the fear of taxes is no reason not to do the right thing.

[@BigPoppa-t3z]

He's not a fear monger. He's just telling you the truth. Like the up front bonus. It BS. I had one tell me this. U know what I did. I fired him.

[@MARCMOEY]

Tax rate have to double?? YEAH RIGHT !!!

[@DavidMcKnight]

Have you done any research of your own. I have. And this is what the experts are saying.

[@MARCMOEY]

@@DavidMcKnightOh yes I have. I've been hearing this is the lowest taxes can go since Reagan. Most financial advisors and accountants will end their meetings this way. it's kind of low hanging fruit. I generally don't find (taxes MIGHT go up) to be a good strategy for long term planning.

[@DavidMcKnight]

@@MARCMOEYhow about taxes HAVE to go up or the country goes broke? This is the consensus of most experts familiar with our country’s fiscal landscape. Seems like this would be an important detail in a financial plan.

[@MARCMOEY]

@@DavidMcKnight Of course, but the country is not going to go broke because of me. All I'm saying is. I was always told you don't make investments because of taxes. You make investments because it's a good investment. You really have no control over taxes.

[@HungNguyen-se8dn]

Able to pay tax means you make money❤

[@BigPoppa-t3z]

Move to Florida or a tax free state. WAAAAALAAA YOU JUST SAVED THIUSANDS IN TAX.

[@patrickbooher5096]

Are you a CPF?

[@DavidMcKnight]

Am I a CFP? No.

[@1timby]

BS, as they aren't non-funded. We can always do what we always do, print more money. SS is taxed currently depending on your yearly income. Funds outside of an IRA and Roth are subject to taxation at the time. A real planner would know how to transfer the funds to places that ensure low tax payments. Like Roth conversions or simply removing funds from the annuity during your retirement. Since most of these vehicles offer a 10% redraw rate without paying penalties. Selling fear once again. Annuities are just another retirement vehicle. To buy peace of mind for those who don't have pensions or to make up for low SS payouts.

[@DavidMcKnight]

SS is linked to inflation by law so how could we possibly print our way out of the problem?

[@1timby]

@@DavidMcKnightYou seem to forget they are doing just that with all the expenditures for the past 3 years. The money to Ukraine is a prime example. Without going through the proper channels. Joe just forgave billions in student debt without going through Congress. Do you believe that any politician would want to be labeled as a person that caused SS to fail or be reduced?

[@BigPoppa-t3z]

​​@@DavidMcKnightI want to tell you something. What is the difference between the 1929 stock market crash and any crash after that I'll make it easy for you after hearing the correct answer that the gentleman above me gave. 1929 crash really on a gold stand. Meaning no printing of paper like COVID checks or Obama bucks or anything like this. This paper printing keeps the country not afloat just not worse but at a cost. Because of pandemic too much money chasing to little goods and services. No one starved to death like 1929 because there was no paper to print for the millions on the bread lines. There were two types of people during the 1929 crash that has not happened since, you either ate or you starved. Inflation is the product of the paper that the govt printed. Period. You should know this. You wrote your books remember. That guy is right. SS rates are set by inflation rates. But the paper and stupid ass politicians printed all the paper.

[@sskcar1]

50% tax is an exaggerated number...I know its an example but please

[@DavidMcKnight]

It’s precisely what the former comptroller general of the US, among others, are predicting.

[@davidhayes7596]

Not to mention inflation.

[@DavidMcKnight]

Indeed.

[@maxangeles6279]

Annuity steals your money!!!

[@firstlast3192]

If i have a 7 year FIA with an income rider and after 7 years I cash out, does the income rider disappear?

[@kinggeek1960]

if your asking if your surrender your annuity? - then yes - you cant have your cake and eat it too

[@BigPoppa-t3z]

I'll answer it if the answer below throws you in a tiiiizzzyyy The Ryder does not. It's a irrevocable part of the annuity. What ever the index is valued at 1035 to another. Not the Ryder unless your booklet you got with it says it does.

[@habbadabbado5765]

Annuities will drain your retirement.

[@DavidMcKnight]

Annuities can do two things that stocks and bonds can’t: guarantee you’ll never run out of money and allow you to spend more money in retirement by neutralizing longevity risk far less expensively. This approach is vindicated by reams of academic studies over four decades.

[@habbadabbado5765]

@@DavidMcKnight you sound like a salesman, not someone looking out for a retiree’s interest. There’s plenty of reasearch that conclude annuities are expensive and hard to unwind if not satisfied. Seems the only people that espouse annuities are those who earn commissions, fees and charges from them.

[@paulbrungardt9823]

My boss is a multimillionaire. He says : " Never buy anything from someone who comes to you, to sell you something." He is there for his benefit, Not Yours ! Buy term insurance and invest the difference.

[@DavidMcKnight]

But people sell term insurance and investments as well. Ever heard of Primerica?

[@lesbolstad]

Correct answer: buying an annuity

[@DavidMcKnight]

Why would it be a mistake when it can help you eliminate longevity risk at half the cost of the stock market approach? Would love to hear a cogent explanation versus simply an assertion.

[@markdavis1116]

The only way you DONT pay tax on you SS is if you make LESS than $25K. And if that is ALL the money you have you probably don’t have a 401k, annuity or pension. What a crappy advice video.

[@DavidMcKnight]

What if all your income comes from Roth IRAs?

[@benshi668]

Your advice doesn’t make sense to me😊😊

[@DavidMcKnight]

Why not?

[@lipete1000]

BS

[@edhcb9359]

99% of annuity owners made the mistake of buying an annuity. The other 1% inherited one.

[@DavidMcKnight]

You are not familiar with the reams of academic studies by Nobel laureates who have mathematically demonstrated the value of annuities increasing income in retirement.

[@edhcb9359]

@@DavidMcKnight Said every insurance salesman ever! 🤣

[@DavidMcKnight]

@@edhcb9359Nobel laureates don’t sell annuities.

[@edhcb9359]

@@DavidMcKnight That’s the best you can do? A lousy line about Nobel Laureates? 🤣 Are you going to sell me a reverse mortgage next?

[@DavidMcKnight]

you show a breathtakingly shallow understanding of the math behind guaranteed lifetime income. Do a little research or watch my other videos or read my book through Penguin Random House that spells it out for you in painstaking detail.

[@jarvisskooge8602]

Vote for Trump - make the tax cuts permanent.

[@gg80108]

morals are more important to me than taxes. Making SS non taxable would be better.

[@jarvisskooge8602]

@@gg80108 Hi taxes are immoral... even more reason to vote for Trump. And yes, SS should be tax free.

[@gg80108]

@@jarvisskooge8602 really what are you willing to give up on standard of living? 80% of your life style is somehow supplied by the gov.

[@gg80108]

@@jarvisskooge8602 you need move to a better side of town or state or get so e skills. The economy is booming, my stock portfolio is booming. If your lazy or have no skills the gov got something for you too, only in America. What ever country you think is better move, it's a free country here. Get a speal like Trump and dumb people will sent you money.

[@georgecurtis1662]

vote for Trump.. 92 criminal indictments