Are QLACs a good idea for retirement income?
The Annuity Man
In 2014, one of the best pro-consumer products was introduced by the IRS and the Treasury Department. Yes...those 2! In addition, that pro-consumer product is also an annuity. Yes...an annuity! That product was called a Qualified Longevity Annuity Contract (QLAC). When I was first told about QLACs in 2014, I made the bold prediction that QLACs would be the #1 selling annuity type in America. Being the top independent agent in the country (aka: America's Annuity Agent), I forgot the one hurdle that would prevent QLACs from becoming the most popular annuity of all time. That one hurdle...low commissions to the agent.
I forgot that most agents choose the annuity that they sell based on what product has the highest commission. They don't care that QLACs can be used for future income in a Traditional IRA. They don't care that QLACs can be structured "Joint Life" with a spouse even though you are using your personal IRA. They don't care that QLACs combat inflation with income starting at a future date. They don't care that QLACs have the potential to lower your taxes on your RMDs (Required Minimum Distributions). Sad but true.
The bottom line is that QLACs are a great future pension income product that can be used with Traditional IRA assets. You should learn more to see if a QLAC would be a good fit for your current portfolio.
Contact Stan The Annuity Man to get the best and highest QLAC quotes with all carriers using Stan's proprietary annuity calculators. You can also receive Stan's QLAC Owner's Manual for free and under no obligation, and see the best fixed rates for your specific state of residence.