I have been researching safer (than stocks) investment options such as indexed annuities and commercial mortgage bridge loans. Annuities are safe but the surrender charges and withdrawal limits concern me. There is not much information (or history) on the bridge loans although the investment period is limited to a year and the interest is tempting at 6%. I am 65 and plan on working 5 more years. Any information on these 2 investment vehicles would be greatly apprecieated. Also, are there other safer options available?
Terry Says: “Chicken money” – -money which is safe from loss — is not paying very much these days, likely less than 1% interest on CDs, even if you stretch the term to 5 years. If you cannot afford the risk of loss, or the lack of liquidity of an annuity, then I suggest you stick to lower yielding CDs, money market deposit accounts, or Treasury bills. I have answered a question on commercial bridge loans elsewhere on this blog. I think they are a disaster waiting to happen.