Fixed annuity
Terry, I am 74 yrs old and am wondering if annuities are good investments at this age. Thank you.
Terry Says
There are all kinds of annuities.
If you’re looking at the kind that pays you a check a month for life, I wouldn’t do that. Inflation would eat away at the value of that monthly check. And you would lose your liquidity.
If you’re talking about the annuity that is a fixed rate for one year (higher than the rates you can get on CDs now), then it may make sense for only a portion of your money, because you can’t get out of it without penalty.
A 3-year guaranteed rate of over 3% is available now.
But if rates rise, you would be sorry you got “only” 3%1
To find rates on these MYGAs (multi-year guaranteed annuities), go to www.StantheAnnuityMan.com.
