When is a good time to withdraw from an annuity and what should you know ahead of time? Eric answers this and two other questions from the mailbag in this week’s podcast.

What kind of financial questions have come up as we continue to live through a pandemic? Eric answers three questions related to student loans, annuities, and being furloughed during this time. Find out what he has to say to these listener questions!

Jan in Osceola has had an annuity for several years and can now withdraw the money without a penalty. Should she take the money out? Eric says this depends. How will the money be used? Will you be transferring it to another annuity or to an IRA? Be sure to consider the taxes you’ll be expected to pay, depending on what you do.

Todd in Van Meter has $16,000 remaining on a student loan for his daughter. He has the money to pay if off, but the interest and the payments are suspended right now due to the pandemic. Should he pay it off or wait? Paying it off while clear you of the debt, but what happens if something were to go awry? Is it worth waiting until we get through these unprecedented times?

Clark in Des Moines was furloughed for about four months this year and received unemployment during those months. But he didn’t have taxes withheld from that, so should he be prepared to pay taxes on that later? Eric explains what the state of Iowa and IRS will consider taxable. Should Clark be concerned about possible penalties? Talking to a tax professional right now may help to offset the taxes in a current paycheck.

Listen to the entire episode or click on the timestamps below to skip to a particular question.

0:50 – Mailbag: Should I withdraw from an old annuity?

4:02 – Mailbag: Should I pay off a student loan that has no interest or payments due?   

6:04 – Mailbag: What will be taxable after being furloughed and on unemployment?