Home Buying in 86442>Question Details

jimmypmanning, Renter in Bullhead City, AZ

I am 64 yrs and about to take a disability retirement. I have never owned a home and would like to use my annuity fund as a down payment on a house.

Asked by jimmypmanning, Bullhead City, AZ Sat Feb 23, 2013

Would there be a penalty or would it be like rolling it over in another investment. I plan on using the house as my primary residence.

Help the community by answering this question:


Hello Jimmy,

Others have said that you need to speak to a tax accountant about your particular situation. There are wonderful opportunities available for home ownership at this time. Please contact me when you are ready. I will be more than happy to show you what is available.
Linda Cavanaugh
US Southwest
928 444-3598
0 votes Thank Flag Link Mon Aug 26, 2013
Hi Jimmy:

Whenever you get advice from a Realtor or a Lender that indicates you are better off talking to them than a CPA, Financial Planner or Attorney--RUN!! Run as fast as you can away from that person.

Salaji, you should be ashamed of yourself for making such claims. Not only that, you are probably subject to prosecution for acting as a licensed professional in multiple areas of expertise in which you are clearly not qualified, as all II see after your name is "Agent"; not CPA, CFP or Attorney at Law. We take these designations we have earned very seriously, and if you continue to give such advice, indicating that a "special kind of Realtor" is the best alternative, I will be glad to put you in touch with the Arizona State Board of Accountancy, for starters, which will be glad to explain the penalties for acting as a CPA without a license. We will then move on to the Arizona State Bar Association.

Sorry, everyone else, this was just too egregious to let pass.
0 votes Thank Flag Link Wed Aug 7, 2013
thank for your concern. I am not a CPA, CFP or an Attorney. Please Do not misrepresent what I said. My Statement is NOT All CPA know about Retirement Plans. My recommendation is Talk to All 3 and make sure that they specialized in the area. If you really want to know when I am coming from, go to http://nouveauriche.com/ and http://www.myrenatus.com/?page_id=8 . Take some classes, and please do not get offended, that is not my intention. The Realtor is there to direct traffic, I am not a Licenses Home Inspector, but we give out 3 places where one can go.
I also admire your tenacity. Thank you for the comment.
Flag Wed Aug 7, 2013
Forgot to mention this:
FYI: the Certified Public Accountant does not necessarily knows about annuities or retirement plans. This has to be analyzed by 3 Sectors: CPA/IRS point of view, Retirement Plan Point of View, & Legal Point of View. This 3 elements have to be coordinated so that they all are in agreement.

So, NOT all CPAs know this, Not All Financial Planners/Advisers know this, & Not All Lawyers know all this!!!

Make sure that who ever can guide you knows about all of this, and can coordinate all at once, Hint!!! you need a special kind of Realtor or Financial Planner.

Thanks for your time.
0 votes Thank Flag Link Tue Aug 6, 2013
Dear Jim:
I am sorry that no one was able to Answer.

Here is the Truth: As REALTORs we cannot give advise. And Nor are we required to KNOW anything about retirements and tax related questions.

HOWEVER we should know it. This is a Real Estate Investment Question: The Answer is Yes you will be penalized because of the way Annuities Work. should you buy the house? Yes. The reality is that you need to have someone review your Contract with the Annuity company. There it spells out all of the details. Let me know if you want me to send you to the right people.
You may want to Rollover your Annuity to another vehicle such as a Roth IRA or Roth 401k, then self direct it so that you can actually purchase Real Estate as an investment to multiply that money TAX FREE.

If you are going to purchase your Primary Home with the Annuity, you will be penalized. If you finance it, you can differed some of the TAX obligations for a later date. Now, on 2013 Taxes went up by 3.5% all the way across the board. YOU Definitely need a LONG Strategy. If you would like to talk privately, let me know. I can give you a list of companies that can help you and also explain in detail how it works.

Have you consider being a Company? such as an LLC or a Corporation? What are you going to do with the Annuity income? If you would like an OPINION on what you could do, to both Tax Implications, Legal Implication and Real Estate, let me know.


0 votes Thank Flag Link Tue Aug 6, 2013
That sounds like a good question for your tax advisor.

Ken and Karen Parrillo
0 votes Thank Flag Link Wed Mar 20, 2013
You need to talk to an account or investment advisor to answer your specific situation
0 votes Thank Flag Link Tue Mar 5, 2013
If you are on disability, a condo would be better for you, no yard work, The weather is excellant around Bullhead City Arizona. no snow and no cold weather.
0 votes Thank Flag Link Tue Mar 5, 2013
The Colorado River Condo's directly across from the Casinos have elevators.

Ken and Karen Parrillo
Flag Wed Mar 20, 2013
I'd check with your administrator to get a good qualified answer.
0 votes Thank Flag Link Sat Feb 23, 2013
I would suggest you talk with your tax accountant or some other professional who is well versed in tax law.
0 votes Thank Flag Link Sat Feb 23, 2013
Hi Jimmy:

This is really a question for a tax CPA. There are various rules which allow certain amounts of money to be used to buy homes by first-time homebuyers such as yourself, but they have many nuances which realtors and lenders are not going to be able to address. The rules vary based on the source of the funds, etc.

I would either contact your tax CPA; I can get you a referral to one if needed; or, go to IRS.gov and do some research. Again, the rules are so complicated, unless you find something very specific to your situation, I would talk to a CPA.

Best of luck. If works out, would love to help you with the financing aspect of getting you into a new home. Bill.
0 votes Thank Flag Link Sat Feb 23, 2013
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