If that’s the case, I don’t understand why the payments wouldn’t go straight into that same IRA tax-free and only be taxed at withdrawal.
I have no idea though, so if you’re sure that’s the way it is, I’ll believe you.
Edit: I didn’t see your other post until posted this.
I don’t think there’s a good reason, I think it’s just the way annuities are papered legally. The insurance contract probably has to distribute it’s payments to the taxable beneficiary of the annuity contract, and there is probably some rule that prevents them from paying the monthly annuity payment into a tax sheltered account. An annuity isn’t really supposed to be an “investment” like a bond, it’s a contract between the insurance company and the beneficiary.
Lol just looked at my bonds funds. They are down 10% YTD as opposed to stocks, which are down 20%. I guess that counts as winning in this market.
I guess that makes sense. Thanks.
Bond prices fall when interest rates go up so yeah they’ll all be down this year.
I think the only asset class that seems to be doing okay is real estate. Our pension fund invests in a real estate fund and it sounds like they’ve been able to raise rents and have their buildings reassessed at higher prices.
It would be a neat trick to be able to have insurance companies pay their amounts into tax sheltered accounts. I could buy life insurance on my wife that pays to my 401(k), then shove her down a flight of stairs. Tax planning!
Real estate is about to get slaughtered. Interest rates are now higher than cap rates (negative leverage), which means a huge percentage of properties are underwater and/or won’t be able to be refinanced. It’s going to be a bloodbath.
As long as you trust Sheriff Qanon in Bumfuck, Idaho to enforce your water rights in an increasingly dystopian environment.
In the US you can avoid estate taxes (but not income taxes) on life insurance by transferring ownership of the policy to the beneficiary.
I don’t doubt it, I’m just saying that YTD in the current inflationary environment, bonds and stocks are getting murdered but commercial real estate has been up YTD. It could of course be next in line.
Agreed I don’t have a great way to do it yet, if you find one let me know.
Heck, in ten years we could touch 18k and then hit 60k.
If there’s one thing I learned from 2008-2022, it’s that the “X money chasing Y goods” is not a good model for understanding how inflation works.
I’m sure we’ll bail out all the banks that made stupid loans again though!
Why?
Because from 2008 on, the money supply (M2) grew at a much higher rate than inflation.
wrong thread…
Commercial real estate or residential rentals? Or both?
Commercial. I think residential is also going to decline but not in a way that’s systemically problematic.
Pretty sure you’d be more fucked than Suzzer if the cards fell tomorrow.