Ask Terry Questions investing in annuities

investing in annuities

By Terry Savage on February 19, 2014 | Chicken Money

I am 70 years old and have investments in c d’s. I have about $100,000.00 that I would like to invest in something more profitable. I know very little about annuities and would like to know if investing in some type of annuity would be the best option ? i would like to know what the downside of such an investment would be.

Terry Says:  Well, you have a lot of homework to do before you “invest” in an annuity — but I’m sure there will be plenty of salespeople out there ready to sell you something if you make yourself that vulnerable.   I’ve written extensively about annuities, and you get my latest book, The Savage Truth on Money, on Amazon or from the bookseller on my website.  Read that entire chapter carefully.  I think you are talking not about an immediate annuity — a check a month for life — but a tax-deferred annuity.  But why do you need tax-deferral at your age?  Are you ready to lock your money up with surrender charges for 5-8 years?  Are you ready to accept a fixed low rate for that period?   Or to make the tough decisions about mutual fund sub-accounts inside a tax-deferred variable annuity??  OR, are you just tempted by promises of slightly higher interest rates than you can currently get on bank CDs?

I suggest you really do some homework on this, or the only one making money on this deal will be the salesperson!

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