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Investment -deferred annuity?

By Terry Savage on January 06, 2021 | Chicken Money

What is the best way to invest $100,000 for a couple in their middle 70’s? Our credit union is trying to get us to invest in a deferred annuity for 3 years which only pays 2.1%. My husband is VERY conservative moneywise and would keep everything under the mattress if he could. Thanks!

Terry Says

A lot depends on your need to use the money, and whether this is part of a larger sum, or your only savings I see no need to invest in a deferred annuity at this stage of life. There is a SALESMAN or woman at your credit union who will get a nice commission from this product!! And if you try to get out of this product you’ll definitely take a “haircut” on your investment.

I know that CDs of 1 year or less pay almost nothing, but you can’t lose a penny! And if rates rise, you’ll be glad you have the cash to reinvest at higher rates. that’s why I call it “chicken money” — money you can’t afford to lose. And the mantra of the Chicken Money investor is: I’m not so concerned about the return ON my money, as I am about the return OF my money!

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