Retiring in a year – Fiduciary and annuities
I’m 65. I plan on retiring at 66 and 2 months. (Feb 2027)
My wife is 69.
I’m a W2 employee and my wife is retired. We have no kids and own a home. No other real estate or businesses.
We have 300,000 in 3 accounts. 401k, IRA and Roth IRA
We have 181,000 in money market savings and CD’s
I met with a financial planner last week. FTA (a fiduciary)
He would take over the 300,000. Our 181,000 would stay at our bank
He recommends going 70% safe and secure and 30% low risk
This would be done with an annuity creating a guaranteed income with a private pension
I’ve talked to a couple friends that are saying “do not do an annuity” .
I’m really looking to maintain the wealth we have at this stage of our lives and don’t want the risk of a market downturn. (so mid and high risk investments are out)
Any advice based on what I said?
Mike
Terry Says
Here’s the risk of an annuity — a fixed check a month for life: That check might look great right now — but at only 3% inflation, the buying power of the check would be cut in HALF in just 25 years! And you’re likely to live that long!
Did this “fiduciary” put it in writing that he is indeed a true FIDUCIARY? I’m guessing not. Yes, a fiduciary might recommend an annuity for a portion of your money — but NO well-educated fiduciary would suggest locking up all your investable assets at age 65! The only retirement helped by this advice will be HIS — from the huge commission he is likely to get from selling this product.
Want some truly FIDUCIARY advice — from a fee-only advisor you can trust? REad this:
https://www.terrysavage.com/pam-krueger-wealthramp/
