Retirement 72t

July 26th, 2010

retirement 72t
Question: Retirement income question: 10 years, Min. of 3.4%?

Is this a scam or for real??

I just retired.
50 years old.
must do a 72T to avoid the 10% tax penalty until I’m 59 1/2.
went to a investment planner and he offered:

Take my $490,000 IRA and add 8% to it (for free). (commission built into plan)
So now he says we will invest the $539,000 for 10 years
give me a monthly income (72T) of $2200.00 for 10 years
He said there is a guarentee of a minimum 3.4% return over the life of the investment (10 years)
and there is no upside limit.
He said VERY worst case scenario: I’ll have $425,00 at the end of 10 years.

We are going to meet again next week..

Please tell me more about this type of plan. or scam!!!!!

Answer: 8% of $490,000 is almost $40,000. It may not be a scam, but it sure is expensive.