$100k Annuity + FL/TX Home = "Security"
Posted: Sun Feb 19, 2012 7:30 pm
I'm considering setting up a financial structure of buying a FL or TX home in the $200k +/- $50k range, along with a $100k annuity at Vanguard in the balanced fund, which an expense ratio of around 0.80%.
Obviously the expenses are 4x higher by holding it in an annuity versus holding it in a taxable account, but 0.80% isn't terrible, especially considering the creditor protection.
I know FL has a law that says the assessed home value can't increase more than 3% annually so once you own a home, the property taxes should be reasonably stable.
My theory is that the state annuity guarantor association guarantees annuities up to about $100k so if AIG crumbles, I should have some backing from the state at least. Also, it's AIG and I think they are too big to fail with the AARP lobbying power.
The full value of the home in TX and FL is creditor protected meaning no one can ever sue you and take it, except the government for back taxes. Fight someone in self-defense, get cleared criminally, don't worry about civil lawsuit. Someone jumps in front of your car intentionally or slams their brakes on purpose, don't worry about suit exceed car insurance limits.
With the $100k annuity, you should have most of your property insurance covered from the creditor-protected monthly payment.
Your PP will be in 401ks/IRAs that are federally protected and distributions will pay for food, healthcare, basic living expenses and entertainment. Since your house and tax are paid for already, you won't need as big of a PP to provide these other expenses.
Thoughts?
Obviously the expenses are 4x higher by holding it in an annuity versus holding it in a taxable account, but 0.80% isn't terrible, especially considering the creditor protection.
I know FL has a law that says the assessed home value can't increase more than 3% annually so once you own a home, the property taxes should be reasonably stable.
My theory is that the state annuity guarantor association guarantees annuities up to about $100k so if AIG crumbles, I should have some backing from the state at least. Also, it's AIG and I think they are too big to fail with the AARP lobbying power.
The full value of the home in TX and FL is creditor protected meaning no one can ever sue you and take it, except the government for back taxes. Fight someone in self-defense, get cleared criminally, don't worry about civil lawsuit. Someone jumps in front of your car intentionally or slams their brakes on purpose, don't worry about suit exceed car insurance limits.
With the $100k annuity, you should have most of your property insurance covered from the creditor-protected monthly payment.
Your PP will be in 401ks/IRAs that are federally protected and distributions will pay for food, healthcare, basic living expenses and entertainment. Since your house and tax are paid for already, you won't need as big of a PP to provide these other expenses.
Thoughts?
