Converting an annuity

How much? Qualified(IRA) or Non-Qualified?

Modern Woodmen of America offers a good one. (Yes, I work for them) you can check it out though. It pays 3% guaranteed and you can do a smooth exchange to turn it into a fixed payment. I would have to know how much you were pushing over, your age etc. before I could tell you how much to expect.

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The rates are terrible right now. Good luck.

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We have MetLife, and our guaranteed payout is 5%, but up to 20% if they earn it. Lately it's been 5%. I do not work for them.

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Basically, you have a few options on the payout. IF you're over 70 1/2, you avoid any tax penalties. I'm not sure about other companies, but with mine, if you have had the annuity in effect for 5 years, you avoid a surrender charge. If you're under 70 1/2, you will face an IRS penalty for pulling your money out early. This penalty only reflects your earnings though, not what you've paid in. So your options.... 1) Life certain with no guarantee (this yields the highest payment, but if something happens to you, the company keeps the money) 2) 10 year certain (your payments are still pretty high, but if something happens to you in the 10 years, your beneficiary continues to receive the same payment until the 10 years is over) whatever remains goes to the company. 3) Life income certain- You will receive payments for your entire life. You can't outlive your payments. This is based on mortality rates, so your payments depend on you age. 4) Cash refund- Go this route. 75% of my clients take this option. You, or you beneficiary are guaranteed to receive every penny in your annuity. The payout is a little lower (about $50-$100) per month in most cases, but this is your best option. You don't want the insurance company to get your money. 5) This is another option- If you are under 70 1/2, you can set yourself up to receive equal payments over 5 years. In this case, you won't be charged by the IRS and you should be able to avoid surrender charges through your company. This is a good option if you're looking for money pretty quickly, and not over the span of your lifetime. 6) Finally, you could just surrender it, take all your money, and take the wife to the grand canyon. Again, you'll face a penalty on your earnings from the good ol' IRS, and you might face a surrender charge through the company. My best advice though....Go talk to your agent. Every company is different. Hope that helped.

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I don't know why I said 70 1/2 to avoid the penalty. It's 59 1/2. Sorry.