72t annuity product from jackson national

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L1: 72t annuity product from jackson national
Hi – I am in the process of setting up a 72t with a financial planner. he has suggested that I open two 72t accounts – one “regular” through my Vanguard plan and then purchase an annuity through Jackson ntl. I am single, 55.5 with 900,000 in assets and a need for an addtl 35k in come per year. I still work part time but can’t work full time anymore. Own my home but do not want to take out a mortgage or home equity loan (I know I can’t work more than part time and don’t want the debt obligation) Anyway, the advice was given due to the fact that the market is unstable and this product “guarantees” your principle and a 5% return if you leave your money for 7 years and pay the (ridiculous) 2 percent fees per year. My money in my vanguard funds is invested very conservatively in diversified mix of stocks and bond (55/45) I AM nervous about the market so this has an appeal but the fees seem very high. Thoughts? (In order to get the 35k per year income, I can structure the 72t in any fashion i desire with more or less $$ coming out of the annuity/vanguard fund. The annuity is variable and i can pick the investments within it.) Thanks for your input and advice. Birthday is 9/1/62 I need to execute this plan in March of this year.
2018-02-19 13:46, By: chels, IP: []

L2: 72t annuity product from jackson national
You need to tell us how much of your assets are in a 401-K, or separately in an IRA. You cannot set up a SEPP 72-T plan with assets outside of a retirement plan.
I’ll address my thoughts about the annuity separately after you give us these figures.
If you have a 401-K, there is a separate response if that applies.
2018-02-19 15:27, By: dlzallestaxes, IP: []

L3: 72t annuity product from jackson national
All of my assets are in an IRA that I rolled over from a 401k. a few years ago. thanks for your thoughts.
2018-02-19 19:04, By: chels, IP: []

L2: 72t annuity product from jackson national
be careful on the annuity. Get the contract and read the whole thing. The actual contract, not the bs marketing material. How much would be in the SEPP IRA vs the Annuity.
After the7 years in the annuity, do you have to annuitize the product.
What are your options after the 7 years is up, can you move the money elsewhere. What are your surrender charges in case you need to access the money in the annuity? Are there penalty free amounts, if so how much per year and over the life of the contract?
What kind of guarantee? is it a death benefit, are there additional riders you need to tack on for what you are expecting from the annuity?
Is it really a variable annuity or equity index annuity. What’s the participation rate and max returns you can get?
When you think about the 5% vs the 2% fee and locking in your money, is it worth it to you, vs maybe looking at a conservative portfolio with those funds instead.
Just a few thoughts, sure others will chime in.
2018-02-19 17:01, By: brkr12002, IP: []

L3: 72t annuity product from jackson national
The broker usually makes out better than anyone. In many of them you cannot make any withdrawals for 7 or 10 years. In others they “allow” you to withdraw your own money back at a maximum of 10% a year.
As the previous response, read every word of their contract. If you do not understand it all, then do not do it.
Get, in writing, how much your heirs get if you die before receiving everything you put in, and if they get more if the value is more.
Is there a “step up” in value as the annuity appreciates ?
Are there guaranteed annual withdrawals ?
2018-02-19 19:18, By: dlzallestaxes, IP: []

L2: 72t annuity product from jackson national
You might want to consider good quality corporate bonds. 5-10 year will yield between 3.5% to 4.25% 4%on $900,000 is $36,000
2018-02-20 16:27, By: RonB, IP: []