• Question
  • variable annuity

    Asked on 8/8/2012

    I am almost 73, I retired January 16th of this year. My husband is retired also, he's 74
    I have $228,000. in my 401K. It is still in my company account, as they have a provision for same. It is in a stable value fund, about l% in in stocks. It doesn't make much, but I don't lose a cent.

    I am thinking about an annuity with Metlife. They would put it in stocks and bonds, I do not need to draw from it at this point, but am afraid of the market at our age. It guarantee's 5% at least a year, minus the 2% fee. That's 3%.

    Is this a good idea at our age??

    We have about the same amount in the bank. Don't owe anyone anything, except daily expenses.

    Dot

  •  
  • Categories: Annuities, Variable

Answers

  • Get a FREE 1-on-1 phone
    consultation with this advisor
  • At your age I'd avoid a variable annuity, they're too risky, you could lose your principle, and you don't have time to recover. An Indexed Annuity would be a better, less risky, solution, but if you were my Parents, I'd be looking for a Fixed annuity. A peer offers a fixed annuity that pays 7.2%, and that's where I'd be recommending my parents put their money.

  • Login to rate this answer:   Answered on 8/9/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.