Tag: lifetime income

Joint & Survivor Annuity (qualified) Non-Spouse Creditor Protection

Weeks ago, I commented on Forbs post regarding establishing a “conduit trust” for a non-spousal IRA beneficiary, usually an adult child.  The attorney was recommending such a trust from a creditor protection standpoint relative to the IRA beneficiary.  In June of 2014, the Supreme Court ruled a non-spousal inheritance of an IRA isn’t protected as “retirement funds” relative to the non-spousal Beneficiary.   Therefore, inherited IRA funds may be seized in…

Charitable Gift Annuities vs. Commercial SPIAs

When clients express interest in charitable gift annuities (CGAs), the purchase decision usually begins with a charitable intent. In other words, they have a high interest in financially supporting a favorite charity that will issue a CGA and also by the way, reap some nice tax benefits along the way. However, in the mortality based income world, I believe there is plenty of room at the table for both CGAs…

Under Annuitized Households an Epidemic

My local paper, the South Florida Sun Sentinel, ran in depth coverage at the end of last year regarding the Hidden Hungry, in an article by Diane C. Lade about food insecurity issues and poor diets facing elderly populations in South Florida.  While many reasons were cited for this, the underlying reason was poverty. In South Florida, older age residents as a percentage of the overall population are skyrocketing.  As…

SPIA First-In First-Out (FIFO), What’s Going On? Old IRS Tables Clash With Current Annuity Pricing

Due to old and unmodified IRS life expectancy tables, particularly table V and VIII, many immediate annuities (mortality polled income contracts) may produce income tax advantages in the form of a “non-taxable” income source.  Of course, non-taxable income is not the same as tax free income.  How is this possible?  It’s possible because these old IRS tables still assume shorter life expectancies derived from 1970s and earlier data.  The shorter…

“King William’s Tontine” by Moshe A. Milevsky A Life Insurance Industry – Shot Across the Bow!

Book Review – Moshe A. Milevsky, in a life insurance industry – shot across the bow, makes yet another ground breaking appeal since his landmark 2004 white paper on Advanced Life Delayed Annuities (ALDAs) that set the tone for the deferred income annuity (DIA) products we have today.  The book re-evaluates how we think about lifetime income and what might make sense when it comes to “sharing” longevity risk among…

Elder Financial Fraud and Immediate Annuities

One of the problems regarding elder financial fraud is average families have not fully considered all the merits of the array of financial products and how they might work to protect them from elder financial fraud.  However, in today’s day and age, this is surprisingly an extremely short list indeed.   The protection really needs to start at the financial product level and not just be some new advisor practice penalty,…

Gays and Lesbians: Maximizing SPIA RMDs for Survivor Benefits

While traditionally married couples receive Federal tax benefits not all gay and Lesbian couples are so fortunate. There are still 20 remaining states that don’t recognize gay marriage. The Defense of Marriage Act (DOMA) finally died on June 26, 2013 under a 5-4 US Supreme Court decision declaring section 3 (restricting U.S. federal interpretation of “marriage” and “spouse” to apply only to heterosexual unions) of DOMA unconstitutional. Following this in short…