Ask Terry Questions Tax-deferred annuity conversion.

Tax-deferred annuity conversion.

By Terry Savage on January 19, 2024 | Financial Planning / Retirement

Terry, thanks for your response on my previous question RMDs and a tax-deferred annuity. In the response, you mentioned to avoid tax-deferred annuities at my age, 72.
Question: I do have one tax-deferred annuity for approximately $200,000 that was converted from a CD 3-4 years ago. Fidelity suggested the conversion. Would it be a good idea to convert that annuity back to a CD when it matures?

Terry Says

Fidelity doesn’t give that kind of advice. I think you have fallen into the hands of an advisor who uses the Fidelity platform to transact. Do you have any idea what you’re paying this advisor?
I can’t give advice since I have no idea of your entire financial situation, and specifically whether this annuity is inside an IRA, and what type of annuity it is — what the promise is, what the penalties are, what distribution options you have!

If you want specific advice on an annuity, I suggest you go to and book an appointment with Stan Haithcock to review your options.
If you want an overall financial plan, read this about Wealthramp to learn how to find a fee-only FIDUCIARY financial advisor who can look over your entire situation.

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