Episode 331: Academics LOVE Annuities – Why Do Investors HATE Them?

Today’s episode of The Power of Zero Show features part of David McKnight’s conversation with Caleb Guilliams and Tom Wall, PhD. David kicks things off by addressing the liquidity issue. Handing a chunk of your retirement savings over to an insurance company in exchange for a stream of income that’s guaranteed to last as long as you do sounds great in principle, but people often have consternation about it… The thought of losing liquidity on a significant portion of their net worth is what prevents some Americans from opting for SPEAs and DIAAs. David explains why a fixed index annuity can be a valuable resource to leverage. David discusses what the annuity industry tends to do.  In his book, Tax-Free Income for Life, David illustrates the so-called “piecemeal” internal Roth conversion. An internal Roth conversion allows you to convert your annuity into a Roth IRA – with an amount of your choosing and over a timeframe your financial plan calls for. Tom Wall discusses the two phases of...