Annuities, LTC, Roth & Social Security: A Candid Q&A with Roy Snarr

If you’ve ever wondered how annuities, long-term care, Roth conversions, and Social Security actually fit together in one plan, this lesson delivers. I sat down with nationally recognized safe-money and LTC strategist Roy Snarr to talk about building a retirement paycheck you can’t outlive—while protecting your family from the most underplanned risk in retirement: extended care.

Why this conversation matters

Most retirees are taught how to accumulate. Far fewer learn how to:

• Turn savings into guaranteed income (without guessing)

• Cover the LTC risk Medicare won’t

• Convert tax-deferred dollars to tax-free the smart way

• Coordinate Social Security timing with the rest of the plan

Roy and I break all of that down—practically, clearly, and without the sales fluff.

Roy’s “why”: the safe-money mindset

At 14, Roy watched disability and market shocks wipe out his family’s financial footing—losing a car, a home, and stability. That experience fuels his mission today: design integrated plans that blend guaranteed income annuities with modern LTC strategies so families aren’t forced to spend down their life savings when life happens.

“If you already plan to spend this money in retirement, wouldn’t you want the paycheck guaranteed?”

The biggest blind spot: long-term care (LTC)

Medicare’s reality: it covers up to 20 days of skilled nursing in full, then a copay to day 100—not custodial care (the type most people actually need). That’s why LTC is a math problem, not just a fear.

What’s changed (for the better):

• Asset-based LTC (life or annuity with LTC benefits) offers guaranteed benefits, cash flexibility, and often return-of-premium options.

• Use $1 to create $3–$5 of tax-free care dollars (policy and state dependent).

• Health spectrum options exist—from fully underwritten to guaranteed-issue (varies by state).

Self-insuring—two ways:

1. Sell assets and pay taxable dollars, dollar-for-dollar.

2. Use asset-based LTC to leverage and make benefits income-tax-free for qualifying care.

A powerful “forgotten” strategy: Pension Protection Act (PPA)

Have an older non-qualified annuity you don’t need for income? The Pension Protection Act allows a 1035 exchange to an LTC-qualified annuity so that benefits used for care are income-tax-free.

• No RMDs on NQ funds

• Potential to turn interest you’d otherwise tax into tax-free LTC leverage

• Often no ongoing premiums after repositioning

Annuities—plain English

Like any tool, there are good, bad, and ugly flavors. The right annuity can:

• Create a retirement paycheck you can’t outlive (SPIA/DIA/FIA with rider)

• Offer downside protection with 4–8%-type historical crediting ranges (product/term dependent)

• Provide liquidity features (free withdrawals, ROP options, or structured access)

Why this matters: the 4% “rule” is shaky in volatile markets. Many households can reposition a portion (not all) of assets to generate the same income guaranteed, often using less principal than a pure withdrawal plan would require.

Social Security: realistic, not fatalistic

Social Security faces funding pressure, but total elimination is highly unlikely. Practical planning beats speculation:

• Model claiming ages against life expectancy and household needs

• Coordinate with your income floor so essential expenses are covered regardless of markets

• Remember survivor implications—your strategy should address the widow’s penalty

Roth conversions with an annuity “staging area”

Roth conversions can be powerful—if you avoid avoidable mistakes.

• Protect the downside during conversion years (so you’re not paying tax on a value that could drop next month).

• Use annuities with no market loss exposure and no ongoing AUM fees as a conversion staging area.

• Mind the tax ripple effects: IRMAA, bracket creep, and survivor brackets.

• Bonuses/credits on some contracts can help offset tax costs of the conversion (still taxable; strategy matters).

The one-page income plan

1. List fixed expenses (housing, food, utilities, insurance, taxes, healthcare).

2. Guarantee that number with Social Security + pension + the right annuity mix.

3. Keep the rest invested for growth and legacy.

4. Add asset-based LTC so a care event doesn’t unravel the plan.

5. Consider a phased Roth strategy to reduce lifetime taxes and survivor risk.

Key takeaway: Ensure you have enough guaranteed lifetime income to cover fixed expenses. Then life—and investing—gets easier.

Due diligence checklist (buy smart, not sorry)

• Carrier financial strength and ratings

• Surrender schedule and true liquidity

• Rider costs vs. real benefits

• Clear claim triggers and inflation options (for LTC)

• Transparent crediting (caps/pars/spreads) for FIAs

• Apples-to-apples comparisons—ignore shiny bonuses if the math doesn’t hold

Final thoughts

You don’t need a perfect market to retire well. You need a coordinated plan that blends guaranteed income, LTC protection, smart tax moves, and sensible Social Security timing. That’s exactly what we covered in this candid conversation with Roy Snarr.

 Want to Talk About Your Social Security, Annuity, Roth Conversion, and Life Insurance Options?

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DISCLAIMER:
The information in this podcast is provided for general educational purposes only and does not constitute financial, legal, or tax advice. Retirement Income School™ and Dr. Amanda Barrientez do not provide individual investment recommendations. Always consult with a licensed advisor or tax professional before implementing any strategy discussed.