By Terry Savage on August 05, 2015 | Financial Planning / Retirement

I have 1/3 of my wealth in no load growth funds,1/3 in realestate rental properties,and in1/3 CD’s. I do not need any dividends in order to maintain my current lifestyle. Would it make any sense to sell the mutual funds and buy an annuity ? I am 73years old.

Terry Says:  What kind of annuity?  If you are thinking of investing in a tax-deferred annuity, it makes no sense.  You would have years of surrender charges and fees, just to get tax deferral on the growth of the money.  At your age, that’s not smart.

BUT perhaps you are thinking of putting some money into an immediate annuity  — one that pays a check a month for life.  Those have two issues.  First, you are locked into that fixed amount, and in the future, inflation might eat into your buying power from that fixed check.  Second, if you die the insurance company gets to keep the balance in the account!

So only you know your financial situation — and the kind of risk tolerance you have (see my latest column at  If you feel you have too much at risk in the stock market for this stage of life, don’t be embarrassed to set some more aside in safe investments.



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