Andrew Schrage from Money Crashers joins Paula and Len on the roundtable today to talk annuities. Plus we have an annuity-filled headline segment. It’s raining annuities on today’s show!
Plus we take your letters today (and awesome letters they are) AND OG reviews the recent animated film Minions. Is it great or was mom drunk when she saw it? We’ll find out.
As if that weren’t enough, we throw in Doug’s trivia and much much more. What are you waiting for? It’s time to subscribe!
SHOW NOTES
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<3:40> Headlines
Why Millennials Might Be Risking Their Retirement With This Investment (Walt Updegrave, Time.com)
<11:30> My Dad’s Shortwave Roundtable
Today’s Topics:
Why Your Next Dollar Shouldn’t Go To Your 401k (CNNMoney)
Why an Annuity? It’s the Income, Stupid (Marketwatch)
Sometimes, It’s Okay To Spend (Kiplinger)
Paula Pant
– Paula’s Blog – AffordAnything (read Did I Mention I Just Moved to Vegas?)
Len Penzo
– Len’s Blog – LenPenzo.com (read 10 Tips for Managing Long Term Care for Elderly Parents)
Our Special Guest: Andrew Schrage
– Andrew’s Blog – MoneyCrashers.com (read What Is An Annuity and How Does It Work – Annuities Explained)
– Follow Andrew on Twitter: Moneycrashers
– Check out their Facebook page: Moneycrashers
<39:22> Your Letters/Reviews
Anita – Moving money toward more conservative investments when you retire
<48:00> End Show/Movies
OG Reviews Minions
HSA’s (Health Savings Accounts) are the bomb!
They can be set up anywhere an IRA can be set up.
It is your money and you get to keep it (unlike a Health Reimbursement Account which goes away at
the end of the year.)
You get to make contributions for the prior year until April 15, just like an IRA, but without the income limitations and you get the $1000/year increase in allowable contributions after age 55.
You can withdraw the funds after age 65 and use them for any purpose and pay regular income tax or leave it in and get reimbursed on qualified medical expenses, including Medicare Part A or B.
You can invest funds pretty well the same way an IRA can be invested (except collectables and real estate.)
You are allowed a one (life)-time (direct) transfer from an IRA to your HSA, limited to the maximum annual contribution amount..
Like Paula said, you can take it as you go or save it up and draw a large amount at once as long as you have documentation.
Downsides are:
You have to enroll in high deductible insurance to establish and contribute to it. Not to much of a downside considering to be considered high deductible the deductible has to be between $1,300 and $6,450 for self-only coverage.
If you withdraw funds with out qualified expenses and before age 65 there is a 20% (twenty percent) penalty.
Awesome, Awesome tool.