Mullooly Asset Management October 2013

Should You Have an Annuity Inside an IRA?

Mullooly Asset Management PodcastOctober 30, 2013

Mullooly Asset Management October 2013

An ExampleClient of Mullooly Asset has an annuity she

wants to surrenderHer CPA suggested NOT surrendering

Mullooly Asset Management October 2013

The Facts

Client began with $205,000Received $5,000 each year as required

minimum distribution – 11 years x $5,000 = $55,000

Should be $150,000 today if annuity earned nothing

Today’s value : $87,000

Buried in the annuity contract is this gem: Annual Management Expenses - 2.95%

Mullooly Asset Management October 2013

The Annuity is Inside an IRA

If you have an annuity within an IRA and are age 59.5:You can surrender that annuity(In most cases) surrender charge will be

waived because it is considered an IRA distribution

You will have 60 days to deposit the funds into another IRA

Mullooly Asset Management October 2013

Annuities and IRA’s Don’t MixThere are no benefits in having a tax deferred

investment (the annuity) inside of a tax deferred account (the IRA)

By doing so you may also be limiting what investments you can own

It also probably increases the expenses of the IRA by generating fees or commissions for the broker

Mullooly Asset Management October 2013

None of the securities mentioned in this (or any) podcast or video represent past specific recommendations of Mullooly Asset Management.

This video is NOT a recommendation to buy or sell any of the securities mentioned here.

If you’re relying on a podcast for investment advice, you are likely making a huge mistake.

We strongly urge our listeners to consult with their investment advisor before they make a decision to buy or sell any investment.

Mullooly Asset Management October 2013

Mullooly Asset Management, LLC

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