This means you can't find a better price for the same insurer's product.
Expert Advice from an Insurance Professional
A 401(k) is NOT an employee benefit like you've been told.
The 401(k) was created by Congress as a tax-saving scheme for employers and highly-paid executives.
That free money you get when your employer matches your 401(k) contribution isn't free.
How it works:
When you roll a [for example] $400,000 401(k) into an annuity, several things happen.
1- The insurance company invests your $400,000 in stable low-yield products (insurance has a very long-term outlook).
2- At your instruction, the insurance company will send you structured payments each month in the amount you request. For instance, you can request $7,000/month if that fits your needs.
The tax-deferred part:
3- At tax time, you won't pay taxes on the $400,000 invested. Instead, you'll pay taxes on the money received that year: $7,000 X 12= $84,000.
And that is your taxable income for the year.
4- As you reach retirement age, you can pull as much from your annuity as you please; because you're now in a much lower tax bracket, you'll pay less it.
All of this adds up to a program that grows your money at 3.25% to 5.10%, makes your money more easily available to you, and keeps the government out of your pocket until you're in a much lower tax bracket.
Please, don't hesitate to call us with your questions. There will never be a charge for our assistance or for a friendly, no-obligation chat.
We can chat on the phone, arrange a Zoom call, or a personal visit so that every contingency is covered. Your choice.We follow all CDC and State-mandated guidelines.
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