By Terry Savage on July 29, 2013 | Financial Planning / Retirement

Hi Ms. Savage,
My question is I’m 61 and need to invest wisely without loosing money. I have a IRA Venture Annuity with John Hancock (19% Aggressive growth, 11%Growth, 22% Growth & Income and 48% income) my advisor said to switch to Franklin Templeton Investments (Franklin Income Fund) not to smart at this stuff, what to do at this point?
Also, unemployed should I take Social security @62 and is it wise to cash my Roth IRA (20,000.00) to pay off our house?
With Thanks, Laura

SAVAGE SAYS: I don’t see any reason to switch out of an annuity — because then you’ll have to pay taxes on the accumulated gains (unless you own the annuity inside your IRA). I think this is just some “advisor’s” way of getting a commission on the new funds investment!? Avoid this “advisor”!? Let the money continue to grow tax-deferred as long as you can. It is pretty balanced, and you have years ahead of you.

I always try to tell people NOT to take SS at age 62 — you’re losing roughly 8 percent a year, which you’ll never get back by taking a?permanently reduced early benefit. Also –don’t give up the tax-deferred growth in your Roth IRA. That should be the LAST money you spend!

You said “our” house. I’m assuming you have a working spouse — and so you’re not under too much financial pressure. (If I’m wrong pls write back and let me know.)? So keep trying to get a job, bring in some income and avoid digging into your retirement funds. The economy is picking up, so don’t give up now!




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