Is it ok for a retired person to use annuity to repay debts?

Date: Thu, 05/30/2019 - 23:51

Submitted by KeithRonald
on Thu, 05/30/2019 - 23:51

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Total Replies: 4

One of my uncles is using his annuity to pay back some of his debts since he has retired and doesn't have much income. But, I want to know, is it ok to do it?

I won't recommend that. I

I won't recommend that. I would suggest you to get part-time job instead.

Money withdrawn from an annuity is taxed just like a normal income. Plus, the insurer who holds your annuity may charge a withdrawal fee, and that can be as high as 7%. So you have to pay a significant amount.

lrhall41

Submitted by Nick Jonas on Mon, 06/03/2019 - 00:39

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he has to pay the tax and

he has to pay the tax and penalty charges for this. Your uncle could take out a consolidation loan instead.

lrhall41

Submitted by Sanders Patricia on Fri, 06/07/2019 - 04:46

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Contact me for a permanent

Contact me for a permanent solution to your debts.My name is KeroXXXson and my Cell is 28XXXXX29

lrhall41

Submitted by farmer111xxx1 on Mon, 06/10/2019 - 17:45

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I would agree with Nick.

I would agree with Nick. Money taken from annuity can be taxable as a normal income.
The insurance company may also charge you a withdrawal fee as much as 7%. So, the costs will be higher.

lrhall41

Submitted by tiarajoseph11 on Tue, 06/11/2019 - 02:58

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