QLAC Archives - Page 2 of 3 - Jerry Golden on Retirement

New Legislation – A Boost for Your Retirement Income Plan

January 17, 2023 By Jerry Golden in Annuity Tags: Income annuities, new legislation, QLAC, retirement income, SECURE 2.0

Get the retirement you want by securing the income you need

Let’s start the New Year with breaking news: Just-enacted legislation called SECURE 2.0 Act of 2022 contains provisions that make it much easier to purchase pension-like income in your Plan for Retirement Income (Plan). The new legislation allows you to defer more taxes and buy more retirement income from your 401(k), Rollover IRA, or similar tax-qualified accounts.

Combine this with the higher annuity payouts due to higher interest rates from these vehicles, and we’re talking about 100% to 250% more income from this source when compared to December 2021. The vehicle is a Qualifying Longevity Annuity Contract — or QLAC for short. Importantly it’s only offered by some of the highest-rated insurance companies in the U.S.

Spoiler Alert: The maximum QLAC per individual is now $200,000 with no percentage limit.

How to reduce taxable RMDs and improve your retirement income plan

September 19, 2019 By Jerry Golden in Annuity, Income Allocation, QLAC Tags: Income annuities, QLAC, retirement income, RMDs

A reporter called me to ask whether investing in a QLAC would reduce a retiree’s RMDs and the tax that must be paid on them.

The short answer is Yes.

The complete answer is, think about the QLAC decision as part of a broader consideration of your retirement finances. Properly combined with your IRA investments, it can provide steady, lifetime income and may help you to fund a legacy to your heirs.

Let’s examine how you might create a retirement income plan that balances various investment opportunities.

Here is a case study

Annuities: The “bad,” the “good” and the “misunderstood”

March 26, 2018 By Jerry Golden in Annuity Tags: Annuities, Baby Boomers, Go2Income, QLAC, retirement income

For some investors, annuities have an image problem. Read the headlines on the advertisements from a few marketing-focused financial advisors to understand why. They often include words like scary, avoid, and often just plain “bad.”

The problem with this characterization is the total failure to distinguish between the broad categories of annuities and to analyze the features of each. As I said in a recent seminar, you don’t drop your life insurance because you are unhappy with the claim adjuster on your automobile insurance.

Would you rather spend that extra cash or make it last a lifetime?

January 24, 2018 By Jerry Golden in Annuity Tags: Annuities, Baby Boomers, Estate planning, QLAC, retirement income

Save it or spend it? That’s the question to answer when you find extra money.

Our friends at Kiplinger’s Personal Finance magazine headlined its February 2018 issue with great approaches when the figure at hand is $1,000, $10,000 or $100,000. I have some ideas, too.

The best opportunity with money that you unexpectedly discover – either from a windfall or cuts in spending you have achieved – in my view centers on “leverage.”

Leverage can mean different things to different people. It can be financial leverage by borrowing money to buy a property you can’t pay for with cash. Or political leverage when the majority needs the minority to pass legislation.

I like the following definition of leverage: “using something to maximum advantage.” More

9 retirement planning trends that make us thankful

November 21, 2017 By Jerry Golden in Annuity, Miscellaneous Tags: 401(k), Annuities, Guaranteed Income, QLAC, Retirement planning trends, Social Security, Thanksgiving

As much as we look forward to the gathering around Thanksgiving, preparations for many of us include ticking off a mental list of what we cannot talk about for fear of igniting a feud in-between second helpings and dessert.

In the spirit of the holiday, I present a list of topics (about retirement of course) that fall into three categories:

Safe for dinner conversation.
Discuss only when Uncle Bob is out of the room.
Danger! Politics!

Whether you play it safe or plan to leave before the pie is served, here are nine retirement planning trends for which I am thankful this season. Please don’t blame me if some relatives at the table feel differently. More