By Terry Savage on December 03, 2023 | Insurance & Annuities

My financial advisor suggested I take a third of my IRA and put it in a fixed income qualified annuity account. To reduce risk. This investment of 220,000 would guarantee us $1500 a month for the rest of our lives. We would start this in three years when we retire. What is your opinion on doing this or are we better just to leave it in our current IRA. We’ve had the IRA for years. It’s average return is about 10% a year over 15 years. Thank you

Terry Says

Ask the real expert to see if you are getting a good deal. The devil is in the details.
Go to and set up a call. Be prepared to show him exactly what your advisor is suggesting. He will give you a realistic comparison to other products.

I’m not sure from your description if he is offering an “index annuity” or an “immediate annuity.” Big difference. The former has a huge commission for the salesperson. The latter is the insurance industry’s guarantee of a fixed monthly check — starting now or in the future.

BUT, know this: You are committing to get a fixed check every month. At only 3% annual inflation, the buying power of that $1500 would be cut in half in 25 years. If you aren’t even in retirement yet, you have at least that long to go! And, by the way, if we should go back to 75 inflation, the buying power wouldbe cut in half in 10 years!!

So this is all part of a plan for your entire retirement — not for a sales pitch from an “advisor.”



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