Ask Terry Questions fixed annuity or 40l(k)?

fixed annuity or 40l(k)?

By Terry Savage on March 17, 2018 | Financial Planning / Retirement

I am 62 with 401K of between 350-400K. Should I move my stocks to more conservative stocks or pull out 350 K and put in a fixed annuity to guarantee my income when I retire? I will have social security of either 1600 (age 62) or 2200 (age 66) plus a monthly pension of 1247 per month for 10 years after I begin drawing. My financial guy wants me to invest 350 K with him but I'm not sure the best thing to do.

Terry Says

There is absolutely no reason to invest in a fixed annuity at your age.  And even worse, no reason to pull money OUT of a 40l(k) to do it!  You'd have to pay taxes on the money, and then invest what's left. And you already have tax-deferred growth with the money inside your retirement plan.  But yes, staying inside the plan, do switch some of your stocks to the more conservative options, such as a stable value fund. Your "financial guy" is a charlatan -- He would be getting a huge commission out of this annuity sale.  STAY AWAY FROM HIM!!  (And warn all your friends!)   Find another advisor, a fee-only financial planner at

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