Radio Show #118: Mortgages, annuities, investing

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Stock indexes closed out the week on a high note, after a Goldilocks jobs report, but our listeners have more on their mind than one monthly employment report!

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Jeff from IL is a fan from the 404 show, which is why he calls me “Aunt Jill”. His wife started a new job and has the choice between a defined contribution plan and a traditional pension plan—which makes more sense?

Ashok from TX has extra cash and is considering TIPS: yea or nay? (More info on TIPS can be found at the government website www.treasurydirect.gov).

Gary is considering whether to borrow from his 401 (k) to pay off his mortgage (boo!) and J is not sure about refinancing a $47K mortgage.

Kathy from NY is selling her farm and needs a place to keep the proceeds before tapping them for another land purchase.

Can Mia from RI grab the early retirement being offered? The answer is a resounding “maybe!”

Jess from IL has an index annuity and is not sure whether he should pay a fee to get out, while Marti’s “advisor” is pitching a new bond fund, now that her annuity interest rate has dropped.

Shell and Walter wrote in about early withdrawals  and beneficiary rules of IRA accounts. The IRS web site has a good rundown on early withdrawals. With regard to a spouse who inherits an IRA, there are 4 different options:

Your ultimate course of action will be determined by your age, the age of your spouse, your income needs, the timing of your need for income from your inherited IRA assets, and the type of IRA you inherit. If you are the spouse of an IRA owner, you generally have four options from which to choose, but you should consult an advisor or a CPA before selecting the option, because each has tax consequences and some options are irrevocable.

1. Assume the IRA

2. Roll over the assets into a new or existing IRA in your name

3. Transfer the assets to an inherited IRA

4. Disclaim (decline to inherit) all or part of the assets

Scott, Jim and Chris wrote to comment about my recent article “Why everyone should watch the ‘Retirement Gamble’”. If you missed this TV program on PBS, you can access it here.

Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE