Kiplinger’s September issue of the Retirement Report featured the Golden Retirement website, Go2Income.com, in an article about Qualifying Longevity Annuity Contracts, or QLACs. Here’s what the article said about the website.
Golden’s firm, Golden Retirement Advisors, created go2income.com to help consumers shop for QLACs. If you’re interested in a QLAC, you’ve got homework to do and may need the help of an adviser. Golden emphasizes that the first step is to design the policy. Death benefit or no? Single or joint life? Cost-of-living adjustments or not? Then shop for the best deal.
During his interview with me, the reporter and I discussed why QLACs are not more popular. As he wrote, in the first quarter of 2016, only $87 million of the $729 million invested in deferred annuities went to QLACs.The view that I expressed to him is that while the product and tax features of a QLAC are attractive, QLACs should be positioned as a component of an overall retirement plan – not as a standalone product. That’s when it makes sense: As an addition to most retirement plans.
As I wrote in the blog post QLAC Introduction, “the IRS published regulations in July 2014 that allow savers to use a portion of their rollover IRA or 401(k) to purchase a QLAC, which will provide guaranteed lifetime income starting at an age you choose (but not later than age 85).” More