Jim and Chris welcome back returning guest Dr. Phillip Snider for a Q&A episode that plays a little differently than usual. Listener emails open a broader discussion of healthspan and lifespan, (including how wealth, genetics, and lifestyle factors shape longevity), retirement planning for longevity, and Dr. Snider’s recommendation for additional tests to help assess your health risks.

(5:15) — George cautions that median longevity statistics are heavily influenced by wealth, genetics, and individual behavior, and shares CDC data showing life expectancy rises significantly once someone reaches age 65.

(29:45) — A listener asks Dr. Snider to discuss the value of the cardiac calcium score in assessing longevity. She also asks about the science behind statins, including their effect on plaque stability and a possible link to reduced dementia risk.

Show Notes:

Dr. Snider’s list of recommended tests:

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Chris’s Summary

Jim’s “Pithy” Summary

I’ve got some thoughts on that TIPS ladder approach, particularly around mortality credits and what happens when you’re the one holding all the longevity risk yourself instead of pooling it. It ties into what I call the See Through Portfolio, our approach to positioning assets so you can actually see what each dollar is doing for you rather than treating everything as one big undifferentiated pile. I also bring back my seesaw, the younger you on one side, the older you on the other, to work through what happens with whatever’s left once the essentials are covered.

We close out on a couple of relevant reader emails, including one from someone who put together twenty-five years of essential spending coverage on his own. Chris and I do some math on what that actually means for him, and I end up talking about fish schooling and birds flocking, because nature figured some of this out a long time before we did.

Show Notes: Humble Dollar Article

The post Funding Essential Expenses in Retirement: EDU #2627 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener emails on Social Security spousal benefit calculations, variable annuities in a 403(b), converting Inherited IRAs, and the Social Security child-in-care provision’s effect on spousal benefits.

(10:00) — A listener asks Chris to explain why his additional high-earning years increased his own benefit so little, due to Social Security’s bend point formula, and how that translated into only a small spousal benefit adjustment for his wife. He also asks whether Social Security stops recalculating a worker’s PIA once they reach age 70.

(28:00) — Georgette asks why her 403(b) funds are classified as variable annuities rather than mutual funds, and whether they function like other variable annuities sold on the open market.

(54:30) — The guys field a question about a non-spouse inherited IRA, where the account holder wants to know whether the required RMD must be taken before completing a separate Roth conversion.

(1:05:15) — Jim and Chris address whether the child-in-care provision removes the early-claiming reduction to a wife’s spousal benefit, in a case where she claims at 62 and her husband, the higher earner, waits until 65.

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Chris’s Summary

Jim’s “Pithy” Summary

Then we shift into jointly owned annuities, and this is the part worth paying close attention to. Most people assume a joint annuity behaves like any other jointly titled asset, where the survivor automatically ends up owning the whole thing. However, that is not always how it works. I walk through language from two different insurance contracts we have dealt with over the years, and the two companies handle a joint owner’s death in completely different ways. If you have an older jointly owned annuity with someone other than your spouse listed as primary beneficiary, this is worth looking into now, because what actually happens at the first owner’s death might not be what you expect.

The post What to Know About Jointly Owned Annuities: EDU #2626 appeared first on The Retirement and IRA Show.

Jim and Chris discuss listener emails on Social Security benefits for a disabled adult child, SPIA timing and funding, longevity assumptions, and QLAC planning.

(15:15) A listener asks why Social Security appears to be paying a disabled adult child benefit and child-in-care spousal benefit as a combined 50% of the worker’s PIA rather than 50% each, and how they might address the issue.

(32:45) The guys discuss whether to buy a SPIA now or wait until age 70, along with the pros and cons of purchasing one with pre-tax, Roth, or brokerage assets. They also address where a DIY investor may be able to purchase a SPIA.

(1:11:00) Jim and Chris respond to a listener considering whether expected AI-driven longevity advances should factor into the timing of a future SPIA purchase.

(1:19:15) A listener asks about using a QLAC to help accelerate Roth conversions and whether a special needs trust for a disabled adult child could avoid a large lump-sum tax hit if both parents pass early.

The post Social Security, SPIA, SPIA Timing, QLAC: Q&A #2626 appeared first on The Retirement and IRA Show.

Chris’s Summary

Jim’s “Pithy” Summary

That distinction matters. If this was a variable annuity held in separate accounts, those assets may not be part of the insurance company’s bankruptcy estate, though market losses and access problems may still be real issues while the company is in rehabilitation or liquidation. If it was a fixed annuity or money sitting in the general account, state guarantee funds can matter, but they are not FDIC insurance, and they do not move in a few days. They can take a really long time, and the limits vary by state and product type.

The larger issue is not that this woman did something wrong. I do not fault her. I fault the agent, the regulators, and the private equity games that Tom Gober has been warning about for years. PHL had weak ratings for a long time, and if it begins with a B, I think it is bad. We also talk about using AI to research insurer ratings, downgrades, ownership history, and state guarantee protections, especially before using an annuity for a lifetime income stream connected to a Minimum Dignity Floor.

Link to the article: https://www.nbcnews.com/news/us-news/paid-insurance-company-99000-generate-retirement-income-life-collapsed-rcna331934

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Jim and Chris discuss listener emails on delayed Social Security credits, annuity provider ratings, DIA versus QLAC income planning, and fixed indexed annuity (FIA) recommendations.

(10:30) A listener shares a long delay in receiving additional Delayed Retirement Credits on their Social Security benefit and asks whether there are any further steps to take or whether patience is the best option.

(26:00) Another listener passes along Kiplinger reader survey results on annuity providers and asks whether the information may be useful in a broader discussion about choosing an insurance company.

(45:00) The guys are asked when a deferred income annuity (DIA) might be better than a qualified longevity annuity contract (QLAC) inside an IRA, especially given the potential RMD and tax advantages of a QLAC.

(1:15:45) Jim and Chris respond to a listener nearing retirement who was advised to move TSP G Fund money into a fixed indexed annuity (FIA) and wants to understand whether that is better than keeping the funds in the TSP and using a withdrawal strategy.

The post Social Security, Annuities, Income, Annuities: Q&A #2625 appeared first on The Retirement and IRA Show.

Chris’s Summary

Jim’s “Pithy” Summary

We get into the black-and-white choices and the gray area. A life with period certain option may spread payments beyond the forced annuitization point if the insurer allows it. If death occurs before annuitization, a non-spouse beneficiary generally faces two cleaner choices: annuitize within one year based on actuarially sound life expectancy, or use the five-year rule. Then we look at investment-only variable annuities, where the insurance company may provide the annuity wrapper, the assets remain in separate accounts, and one company Jim contacted allows new contracts up to age 95 with forced annuitization pushed out to age 121.

The gray area is the non-qualified stretch. Jim explains why he has softened, but not flipped, on it. The SECURE Act changed Section 401, not Section 72(s), and that matters. Still, the comfort level depends on PLRs, insurance company practice, and how much uncertainty someone is willing to tolerate. One path is the verb annuity: give up access and control in exchange for a lifetime stream of income. The other keeps the noun annuity alive, with more flexibility, but less certainty. Same problem, very different wrappers.

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Jim and Chris discuss listener emails on Social Security earnings limits, and two emails relating to using annuities for LTC planning.

(13:00) — A listener asks whether income from selling NSO stock counts as earned income for Social Security, potentially triggering the earnings limit before full retirement age.

(21:00) — George asks about using a 1035 exchange to move variable annuities with guaranteed living benefits into a product offering long-term care benefits, and wants help weighing the tradeoffs of this approach.

(49:45) — The guys help a listener think through annuity planning to fund future long-term care costs for in-laws, including whether to use one joint annuity or two individual annuities and where to find SPIA quotes.

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Chris’s Summary:

Jim’s “Pithy” Summary:

That real conversation is a listener’s email about forced annuitization. His mother bought a variable annuity in 2002 with money she didn’t need to cover her Minimum Dignity Floor and invested it aggressively. Set it and forget it. Now, decades later, a deadline is closing in, and what looked like a smart, tax-deferred decision has turned into a significant IRD problem with no clean exit. The listener has been chipping away at it, but the math isn’t cooperating.

There are options, some involving the existing contract, some involving moving it entirely, and at least one that surprised even me when I dug back through my notes. None of them are perfect, but the worst move may be the one he’s already making. We’ll get into all of it.

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