Annuities vs checking
My partner is 74 years old and he was advised by his financial planner to invest the cash that he has in a checking to invest into a fixed rate annuity. You have said that you are not that happy with annuities. Can you provide any advice for this situation?
Thanks,
Terry Says
not all annuities are alike. And in some cases a fixed-rate annuity is a good idea. BUT, if the money is just sitting in a cash checking account, instead I’d recommend short-term Treasury bills, with maturities of 13 weeks.
Read this:https://www.terrysavage.com/t-bills-beat-cds/
Currently, 3 month T-bills are yielding 5%. No idea what will happen in 3 months when they renew. But if money is in checking, I’m guessing that “liquidity’ is a key ingredient in this decision.
Much easier, more liquid, and no fees — Guessing the “advisor” charges a fee based on “assets under management” and thus would like control of this money!!
