Unlike retirement accounts, there are no federal contribution limits for variable annuities, and the investment gains won’t be taxed until they are withdrawn.
Hybrid long-term care insurance policies, also known as asset-based plans, combine the benefit of a life insurance policy or an annuity with the availability of long-term care benefits.
It’s important for heirs to consider how a windfall might be used to strengthen their finances now and over the long term.
Overreacting to market movements or trying to “time the market” by guessing its future direction can create additional risk that could negatively affect long-term portfolio performance.
How much life insurance would you need to produce a sufficient income stream for your family?
Compare the potential future value of tax-deferred investments to that of taxable investments.