Financial expert breaks down annuities and Roth conversion rules

Annuities can hold less than 20% of a total portfolio in some cases. That figure serves as a benchmark for advisors considering these products for clients. The new column, titled Rapid Fire Financial Shaylas, appears in The Jewish Press. It addresses four specific reader inquiries regarding personal finance and insurance.

The first question involves parents considering an annuity recommendation. The column notes that annuities shift financial risk to insurance companies. They can provide guaranteed income to cover essential expenses. This stability allows investors to take more risk in their portfolios. The column advises checking if the product is simple. If the allocation stays under 20% of assets, the decision may be sensible. Complex products or large allocations warrant escalation to a branch manager.

The second question concerns whole life insurance. The column states that whole life makes sense when the permanent death benefit is the primary goal. It lists four specific situations where this product is useful. These include providing liquidity for estate taxes in wealthy families. It also applies to funding buy-sell agreements between business partners. Additionally, it covers permanent obligations like caring for a dependent. Finally, it suits individuals who value guaranteed premiums and cash value growth. The column warns against using whole life as a primary investment.

The third question asks about converting IRAs to Roth accounts. The column explains that a full conversion is rarely the best choice. It depends on current tax brackets and future income. Converting everything at once triggers higher tax brackets and Medicare surcharges. Partial conversions spread over multiple years allow for smoother income. This strategy avoids higher tax rates and reduces future required minimum distributions. The column suggests consulting a professional to determine the right approach.

The final question compares GoFundMe pages to life insurance. The column describes crowdfunding as reckless for general financial planning. It notes that GoFundMe lacks guaranteed payouts and visibility. Term life insurance offers a guaranteed benefit for a small premium. It can replace lost income and pay off debts. The column states that crowdfunding works best as a supplement. It is not a substitute for standard insurance coverage for families dependent on income.

The column was published on October 28, 2026. It serves as a resource for readers seeking direct answers to common financial dilemmas. The advice ranges from insurance products to retirement account management.