Variable Annuity Alternatives?

3 Replies

I have a variable annuity that represents 1/3 of my retirement assets. The other 1/3 is in a rollover IRA which I'm gradually converting to a Roth. I am 64 and would like to explore the best options (if any) of investing that money elsewhere. I've read about 1035 rollovers to long term care policies. Does anyone have other ideas? I hate seeing it grow and grow, knowing taxes are going to be a huge issue.

Take money in your Roth and buy rental properties. This will provide retirement income where the initial investment will continue to provide an income that will just go up as rents increase over time and the asset will likely appreciate. 

My ROTH IRA will never run out of money and will provide tax free income.

Linda,

I recommend finding a financial advisor who specializes in working with real estate investors. You may want to consider working with your advisor remotely to expand your options.

I would also recommend looking for an advisor who is willing to work with you throughout the year. You want an advisor that can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

You should also look for a Fee-only advisor who is not going to sell you a product and/or try get a commission. 

Good luck and let me know if you have any questions. 

@Linda Dorothy

The biggest problem with a long term care policy is that it will likely not help you in your younger years. Unless the other 2/3 of your assets can support you, it may not be an optimal choice.

Also you can likely find a better method to grow your $ than a variable annuity. High fees and limited options.

I do approve of your Roth conversion strategy. It’s timely and will likely pay off.