I help busy professionals and retirees avoid costly mistakes and grow lasting wealth through retirement. I write a blog, produce a podcast, and create this free weekly newsletter to an audience of 25,000+ monthly members. Subscribe and learn!
Is "Direct Indexing" Good for Retirees? π΅
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Hello! Jesse Cramer here. Thank you for reading The Best Interestβ And listening to my podcast, Personal Finance for Long-Term Investorsβ From the blog...When is a "free" steak actually frighteningly expensive? Reader βCβ wrote in to share: The short version of the story is that I went to a lovely free dinner sponsored by a financial investment company who would like to take my traditional IRA and convert it to Roth via a Fixed Indexed Annuity.
They would pay a 17% bonus for my ~$580k traditional IRA + SEP + 401k and then, over the course of 10 years, convert to Roth, keeping income down enough to not stimulate IRMAA increase (when that becomes a concern at 63 β I am currently 60)
As I understand it, my only risk is the opportunity cost of not maximizing market gains.
Thanks for any insights you are willing/able to provide!
As I read what C outlined, my radar detector rapidly whirred to life, getting ready to sound a loud, red alert! π¨ First, letβs define this lackluster tool β what is a fixed indexed annuity? And then letβs discuss β why could this be the most expensive βfreeβ dinner of C's life?! β Read It Here π About That "Free" Steak Dinner... π₯©β β On the podcast...βEpisode 121 is our 10th Ask Me Anything "AMA" episode, featuring answers to questions like:
β Give it a listen π Ask Me Anything #10β β
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P.S. - if you find something great that you think deserves to be shared with our community, let us know! What Are *Your* Questions?I've been creating "ask me anything" episodes on the podcast, where I answer your questions about investing, financial planning, and retirement. They are quickly becoming my most popular episodes. π All of My AMA Episodesβ I'm collecting questions for AMAs 11 and 12. Work with Jesse?By night, I run The Best Interest and Personal Finance for Long-Term Investors. By day, I work for a fiduciary wealth management firm in Rochester, NY, helping busy professionals and retirees avoid costly mistakes and grow lasting wealth to and through retirement. Learn more here. In ClosingThank you, as always, for reading, listening, and getting in touch. The project continues because the audience (that's you!) is amazing. People like you send me questions every single day. Iβd love to hear from you. Go ahead! Send an email or ask me question: ββjesse [at] bestinterest [dot] blogβ Until next week, Jesse |
Jesse Cramer
I help busy professionals and retirees avoid costly mistakes and grow lasting wealth through retirement. I write a blog, produce a podcast, and create this free weekly newsletter to an audience of 25,000+ monthly members. Subscribe and learn!
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