Fidelity Personal Retirement Annuity Account is really something different, in that it is a contract and yet it is really just an alternative form of a tIRA - until the account owner elects to enter and starts a life-time payment schedule. The account cost is 0.25% annual plus the fees of whatever mutual funds in which you investment in, in my case it is less than 0.1% (S&P500 Index fund). So, essentially less than 0.4% is the cost for having the tax-deferred feature, which is now due, which I had no idea (would be taxed as ordinary tax instead of CG!) when it was recommended to me years ago. I thought it made a lot of sense then.
Unlike most places, Fidelity's annuities are much lower cost, about 0.25% a year, with some of the underlying funds having low expenses. If you have a sufficiently low cost annuity, and you're able to keep it for a very long time,
you are right, hence I am really not excited about giving up the whole thing in exchange for trickling payments in return.If the original poster turns it into annual or more frequent payments of 6% or 7% a year, it's misleading to call the payments income. A portion of each payment is principal.
Yes, this is indeed the essence of what I am trying to get a clear view on. My current rationale is premised on taking Roth Conversions as the higher priority. On that end, I still have some way to go given the current rate I have been doing - unless I bump that rate up significantly, but then I would be doing myself serious disservice, I think, and it seems foolish too.Cashing in portions of the annuity between retirement and when RMDs begin will compete with Roth conversions for any low bracket space. You would have to consider which of the two is the higher priority.
Statistics: Posted by Oxford7458 — Sun Nov 16, 2025 11:51 pm — Replies 15 — Views 1741