Annuities with Fexingo: Income Products, Retirement Planning, and Insurance Investments

Episode 54 of Annuities with Fexingo: Lucas and Luna break down how a fixed annuity can be used to fund a special needs trust, preserving government benefits for a disabled beneficiary while generating tax-deferred growth. They walk through a real example of a 55-year-old parent funding a $200,000 fixed annuity inside a third-party special needs trust, explaining the mechanics, the monthly income...

Lucas and Luna tackle a common but poorly understood retirement planning mistake: buying an income annuity inside a tax-deferred IRA. Lucas explains the tax math—how annuity growth taxed as ordinary income inside an IRA creates zero tax diversification benefit—while Luna points to a real case from a listener who rolled a $240,000 401(k) into a variable annuity and got double-taxed on the same doll...

Episode 52 of Annuities with Fexingo digs into the fine print of fixed annuity riders — specifically guaranteed lifetime withdrawal benefits (GLWBs) and how they can juice retirement income beyond the base contract. Lucas and Luna walk through a concrete example: a 60-year-old investing $200,000 into a fixed annuity with a 5% GLWB roll-up versus a simple income annuity. They compare payouts, liqui...

Lucas and Luna break down exactly how fixed index annuities calculate their credited interest — the cap rate, participation rate, and spread that determine your return. They walk through a real example using the S&P 500's performance in 2022, when the index fell 19.4 percent but a typical fixed index annuity with an 8 percent cap and 100 percent participation rate credited 0 percent. They explain...

In episode 50 of Annuities with Fexingo, Lucas and Luna tackle multi-year guaranteed annuities (MYGAs) versus certificates of deposit (CDs). With the Federal Reserve's rate cuts pausing in mid-2026, MYGAs are offering a 50-80 basis point yield advantage over comparable CDs, plus tax deferral. The hosts walk through a real-world comparison: a $100,000 five-year MYGA at 4.75% versus a five-year CD a...

In this episode of Annuities with Fexingo, Lucas and Luna explore why a deferred fixed annuity can generate more reliable retirement income than a high-yield savings account—even when savings rates are above 4%. They break down the mechanics of a 10-year deferred fixed annuity, comparing its guaranteed crediting rate, tax deferral, and payout structure against a taxable savings account earning a h...

Episode 48 of Annuities with Fexingo explores a powerful but underused strategy: using a fixed annuity to fund a charitable remainder trust (CRT). Lucas and Luna walk through a concrete example of a 68-year-old retiree with $500,000 in highly appreciated stock, who wants income for life plus a charitable legacy. They compare the tax and income outcomes of selling the stock directly versus transfer...

In Episode 47 of Annuities with Fexingo, Lucas and Luna explore structured settlement annuities — a niche product that pays tax-free periodic income to injury victims. They break down how Section 104 of the tax code works, why insurance companies use special purpose vehicles, and how a structured settlement compares to a lump sum for a plaintiff. The episode walks through a concrete example: a $50...

In this episode of Annuities with Fexingo, Lucas and Luna explore how a fixed annuity can act as a buffer against sequence of returns risk — the danger of retiring into a bear market. Using the example of a couple retiring in 2008 with a $1 million portfolio, they show how allocating 30% to a single premium immediate annuity (SPIA) preserved their portfolio for later withdrawals. They discuss the...

Episode 45 explores using a fixed annuity inside a Deferred Sales Trust (DST) to defer capital gains tax on the sale of a business or appreciated asset. Lucas and Luna walk through a concrete example: a business owner selling their company for $5 million, rolling the proceeds into a DST that purchases a fixed annuity yielding 5.5% annually. They explain how the annuity provides predictable income...

In Episode 44, Lucas and Luna tackle a question most annuity discussions skip: how do nonqualified annuities (bought with after-tax dollars) actually compare against taxable bond portfolios on an after-tax basis? They walk through the math using a concrete example—a 40-year-old in the 32% federal bracket investing $100,000—and show how the annuity's tax deferral on gains compounds differently than...

In this episode of Annuities with Fexingo, Lucas and Luna tackle a fear that keeps many retirees up at night: sequence of returns risk. They explain how a bad market in the first few years of retirement can permanently damage a portfolio, and why a single premium immediate annuity (SPIA) can act as a shield. Using a concrete example of a 65-year-old with $500,000, they show how annuitizing 20% of...

Lucas and Luna dive into a specific strategy for retirees in their early 60s: using a deferred income annuity (DIA) to create a lifetime income bridge that starts at age 80. They walk through a concrete example using a $100,000 premium from a client's IRA, showing how the DIA can reduce sequence-of-returns risk and lock in a guaranteed income stream for later years. The episode also covers how thi...

Episode 41 of Annuities with Fexingo explores how a deferred income annuity with a cost-of-living adjustment (COLA) rider can protect retirees from inflation. Lucas and Luna walk through a concrete example: a 55-year-old investing $100,000 in a DIA that starts paying at age 70. Without a COLA rider, the monthly payment is fixed at $1,200. With a 3% compound COLA rider, the initial payment drops to...

Lucas and Luna explore how a fixed annuity ladder can fill the pension gap for workers who don't have a defined-benefit plan. They break down a concrete example: a 55-year-old with $200,000 deploying it across three deferred fixed annuities starting at ages 62, 65, and 68 to create a predictable income stream. The hosts compare this strategy to bond ladders and single premium immediate annuities,...

Episode 39 of Annuities with Fexingo examines the single premium immediate annuity (SPIA) as an alternative to systematic IRA withdrawals for retirees aged 65-75. Lucas and Luna break down the math using a real-world example: a 70-year-old with $500,000 in traditional IRA assets deciding between a 4.5% systematic withdrawal vs. a SPIA paying $3,100 per month for life. They discuss longevity poolin...

In this episode of Annuities with Fexingo, Lucas and Luna tackle sequence-of-returns risk — the silent portfolio killer for retirees who withdraw during a market downturn. They explain how a fixed index annuity with a guaranteed lifetime withdrawal benefit can act as a buffer, using the example of a retiree who retired in 2008 with a $1 million portfolio and a 4% withdrawal rate. The hosts walk th...

Lucas and Luna take a fresh look at variable annuities—specifically how to turn one into a systematic withdrawal plan that mimics a paycheck in retirement. They walk through a concrete example using a hypothetical $500,000 variable annuity contract with a 6% guaranteed lifetime withdrawal benefit, showing how the math works and where the risks hide. They also compare the variable annuity approach...

Episode 36 of Annuities with Fexingo explores direct indexing as a tax-efficient alternative to annuities for high-net-worth retirees. Lucas and Luna break down how owning individual stocks instead of a mutual fund or annuity allows investors to harvest tax losses at scale, offsetting capital gains and even ordinary income. They walk through a concrete example: a retiree with a $2 million portfoli...

Lucas and Luna explain why buying a single annuity with a lump sum can lock in unfavorable interest rates and limit flexibility. They walk through the laddering strategy—staggering annuity purchases over multiple years—using the example of a 55-year-old investor with $500,000 to deploy for retirement income. The episode covers how laddering reduces timing risk, improves liquidity, and can boost to...

Episode 34 of Annuities with Fexingo. Lucas and Luna explore a mid-career strategy for reducing Required Minimum Distribution taxes using Qualified Longevity Annuity Contracts (QLACs). They walk through a concrete case: a 55-year-old with a $1.2 million traditional IRA defers $200,000 into a QLAC that starts paying at age 85. The payoff? Lower RMDs from age 72 to 85, reducing taxable income by rou...

Episode 33 of Annuities with Fexingo digs into a lesser-known IRS provision: the qualified longevity annuity contract, or QLAC. Lucas and Luna walk through how a 50-year-old earning $180,000 a year could defer required minimum distributions on $200,000 of retirement savings until age 85 — reducing taxable income now and letting that money compound tax-deferred for an extra 15 years. They compare i...

Episode 32 tackles a little-known tax strategy: using a deferred fixed annuity to pay the tax bill on a Roth IRA conversion. Lucas and Luna break down why paying conversion taxes from the IRA itself defeats the purpose, and how a separate annuity can fund the taxes while preserving the IRA growth. They walk through a real-world example with a $200,000 traditional IRA, a $40,000 tax bill, and a fix...

Episode 31 of 'Annuities with Fexingo' explains how a Qualified Longevity Annuity Contract (QLAC) can reduce your Required Minimum Distribution (RMD) tax burden by deferring a portion of your retirement savings until age 85. Lucas and Luna break down the IRS rules, the $200,000 limit, and the trade-offs between lower RMDs and forgone growth. Using a concrete example of a 72-year-old with a $1 mill...

Episode 30 of Annuities with Fexingo covers a strategy rarely discussed: building a ladder of deferred fixed annuities to replace or complement a traditional bond ladder in retirement income planning. Lucas explains how a 3-year ladder of multi-year guarantee annuities can yield 4.2% today versus 3.6% on a comparable CD ladder, while Luna probes the liquidity trade-off and surrender charges. The e...