72t or life annuity

L1: 72t or life annuityI have a client who must decide on annuitizing or rollover a lump-sum distribution. The amount is $600,000. The employer”s annuity plan will guarantee $45,000 on a joint and equal to the survivor basis. The retiree and his wife are both 58 years old. He has additional wealth in the form of income producing property worth $400,000. I feel he should rollover the money to an IRA. What is your advice?2003-02-24 07:19, By: Joel, IP: [127.0.0.1]
L2: 72t or life annuityHello Joel:
What you are asking here is really an investment question; not a 72(t) or tax question. I think the majority of the correct answer lies with your client & information you have not provided: their risk adversity, health, investment desires & ability, etc.
TheBadger
wjstecker@wispertel.net
2003-02-24 11:17, By: TheBadger, IP: [127.0.0.1]

L2: 72t or life annuityAs per the Badgers” statement, your question is hardly a 72(t) question.
But I will also say the before you dismiss the annuity, take a look at what can be acquired in the market for the same annuity form, ages 58and $600,000 – you may be surprised to find that $45,000 is much higher that you can acquire directly, or by investing the funds. It would require a consistentannual 7.5% to generate $45,000 from $600,000.
Just my thoughts.2003-02-25 07:07, By: Gfw, IP: [127.0.0.1]