Secondary Market Annuities are a perfect safe investment for your retirement accounts.
Here’s how we do it- Your funds may be in a Roth, a 401K, or a Simple IRA, but in all cases, we need to utilize a self directed IRA custodian to service the Secondary Market Annuity investment after purchase.
Rolling your funds over from one custodian to a new one is a very simple process, but it can take a week or two. If you know you’re buying Secondary Market Annuities with your IRA, it often makes sense to open the self directed account first, even before you reserve a deal…
There are many self directed IRA custodians who most likely can accommodate SMA’s, but we work with GoldStar Trust company the most.
About Self Directed IRA’s
Self directed IRA’s are simply IRA’s held by a custodian that permits you to direct your own investments- you can chose to buy Secondary Market Annuities, real estate, or any other sort of investment. A self directed IRA custodian will not offer you investment advice- they just ensure the account is in compliance with the IRS.
By contrast, many IRA’s held by brokerages like Schwab or Fidelity let you pick from only a few Fidelity or Schwab mutual funds- they are restricted and captive, and may offer traditional stock picking advice.
IRA regulations are designed to ensure the IRS gets its hands on your money, eventually…. so when rolling your IRA into a Self Directed IRA, it’s critical to follow the right procedure and not incur taxes. You can read about self directed IRA’s here.
IRA and Secondary Market Annuity Details
Holding SMA’s in your IRA requires the custodian to calculate the balance of the contracts for Required Minimum Distribution (RMD) purposes each year… if you purchase long term deferred Secondary Market Annuity contracts, this calculation can be complicated, and if you don’t make proper arrangements to have distributable cash on hand, you may have a situation where you are required to take money out, but don’t have the cash to do so.
So take a minute to plan out your RMD’s before reserving an Secondary Market Annuity. Or better yet, ask for help- once you join up on this site, you can specify your needs and we can help with the IRA set up.
There can also be some complication with IRA’s and life contingent cases, so again, call or email us for details.
Secondary Market Annuity and IRA Summary
IRA’s are designed to offer tax deferral for investors saving for retirement…. and they are designed to be SPENT in retirement as well. Many people can’t touch the money in their IRA’s for a long time- a 50 year old does not HAVE to take money out until 70.5!
Too often, people shoot for income contracts in an IRA and produce income (and return of principal) that they can’t use anyway- what a waste! Take advantage of these deferred interest rates and make some tax deferred money!
Secondary Market Annuities offer a safe, risk free and guaranteed income stream, and they also offer fantastic deferred appreciation.
If you have more IRA question, see the Secondary Market Annuity and IRA FAQ Page.
When you pair a deferred appreciation Secondary Market Annuity with a tax deferred IRA or tax free ROTH IRA, your net effective after tax jumps through the roof. Don’t put your IRA funds at risk- make a smart high yield safe move today.