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Treasury Bills

By Terry Savage on January 08, 2023 | Insurance & Annuities

I retired in July of 2022 at age 60. I have about 700k in prudential annuities which will mature in 2027. They are tied to the SP500. I have 270K in my 401k and 250k in my pension. I have 90k in my savings. I plan on living off my savings, 401k and pension(in that order) until the annuities come due. Oh, I also put 10k each for me and my wife in I bonds. My biggest expense is my medical insurance which is 1939 a month for me. Wife has social security disability. Cars and House is paid for and we have no other debt. I was thinking of putting 75k of the 90k from saving into 3 and 6 month treasury bills and then decide at the end of term whether to renew if we didn’t need the money? I figure whatever the Tbill rate is was better than the .03 from my BMO savings.

Terry Says

Well, you’re actually asking two different questions.
Yes, it’s a great idea to buy T-bills, safe and much higher yields for your cash.

But the second question is one you didn’t ask. Your annuities don’t “mature’ in 2027. I can say that for sure, since annuities don’t “mature.” But you really should have an expert look at those products. At some point you will either choose to set up withdrawals or annuitize (and you’ll be shocked to learn that your withdrawals will be limited –not to the value of the “investment account” but to a much smaller pool of money that grew at very low interest rates.

I can send you to one person you can trust to review your options clearly. That is “Stan the Annuity Man’! Here’s his website —https://stantheannuityman.com/
There you can set up an appointment with Stan. (Mention my name, not that I get anything out of this — I dont — but just so you get directly to Stan!)
And first, you might want to listen to this podcast on fixed index annuities: https://stantheannuityman.com/mr-fia-x-december-2022

And after you go through that process, I recommend you get a real financial planner to review your situation. Find one you can trust at Wealthramp.com.

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