Question
Your client Carole currently has a variable annuity with Vanguard with a balance of $600,000. She was just notified that they will no longer be
Your client Carole currently has a variable annuity with Vanguard with a balance of $600,000. She was just notified that they will no longer be offering these products. Carole is interested in moving her annuity to Fidelity. Carole's birthday is 1/1/1963. She will be working until she turns 67 in 2030. Assume she is single and has no dependents. She wants enough money to last her remaining lifetime. She is concerned about inflation which she is estimating will run 2%. She wants your help in answering the following questions:
1) How should she go about moving her annuity to Fidelity and what are the tax implications of the move?
2) What annuity product do you recommend that she uses for the next 10 years while she is still working?
3) What annuity product do you recommend that she uses once she starts withdrawing money at retirement?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started