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50
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7
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Art Webb
7
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50
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IRA to Roth IRA Conversion Strategy - Is this a sound strategy ?

Art Webb
Posted

Hello, I ran across a conversion strategy where an annuity company would add a significant cash bonus to my IRA conversion account to cover the conversion taxes so my conversion is tax free to me (well some what). The annuity company is Athene which I understand is a top ranked annuity company. This would be a ten year initial commitment of my IRA converted Roth IRA dollars. They promise my growing Roth IRA account balance becomes a floor and protects my account balance from being negatively impacted by market changes. I'm allowed to withdraw 10% per year up to the ten years. Commission paid is .095% of account balance for each of the ten years. Appears best way for me to reduce my commission costs is to reduce my Roth balance by 10% each year. I could roll over those amounts into another Roth IRA of my choosing. Beneficiary would receive current balance at time of death IAW Roth IRA rules.


All sounds good but I’m not familiar with Athene’s possibly non stock investment vehicles.  My monies would be invested in a group of six indexes named AIGO, AIPEX, BNPIMAD5, BOFANFCC, SPXFCDUE, and UBSIBAL.  I would appreciate anyone’s comments on this type strategy good or bad and your opinion of these indexes.   Thanks so much !

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