401-K and Annunities
When I retire in a year or so, I would like to put my 401-K funds in an annunity. However my company does not offer such a product. Do you have any info on annunities and could you suggest a financial institution I could contact? Thank you. Be well and stay safe.
Regards,
Terry Says
Whew, you are opening the door to a slew of annuities salespeople who will be only too delighted to put you into an expensive product! I’m glad you wrote to me first.
I would never recommend you put your entire savings into an annuity. Remember, if you die early you can’t get this money back, nor can your heirs. Even worse –the moment you do this transaction you are given a fixed monthly check based on current rates and quotes. But in future years, inflation will decimate the buying power of that monthly check. At only 3% inflation, the value of your money is cut in half in 25 years. At 7% inflation — the current rate, but not likely to stay that high — the spending power of your money is cut in half in 10 years!!
Please spend $10 and buy a copy of The Savage Truth on Money on Amazon (here’s the link). It’s bound to save you a fortune out of ignorance. There is a huge chapter on annuities.
Then meet with a FIDUCIARY financial planner at www.Wealthramp.com, and discuss the best way to rollover and invest this money, maybe with a portion in annuities. But this decision has to be made in conjunction with a plan designed to make your retirement both secure and affordable!
