At 70, I’ve been retired for 7 years with an $80K annual retirement income. I have $200K in CDs, but they’re coming due. What’s my move?
October 16, 2024 by Alisa Wolfson
Question: “I’m 70 and have been retired for seven years. I have $80,000 in annual retirement income from three retirement accounts, Social Security and a paid off rental home. My house is also paid for and the related bills I have are taxes, insurance and utilities. I have $200,000 in certificates of deposit. What do I do safely when my CDs come due at the end of the year? Are annuities a safe, good idea? I think the stock market is too risky at my age. Are there any other options I should consider?”
Click HERE to read MarketWatch’s reply
Wink’s Moore on the Market: In this morning’s MarketWatch, a consumer asks the question, “Are annuities a safe, good idea?”
A couple of advisors had something to say about it.
“Annuities also are often laden with fees…”
Actually, that isn’t true for more than half of all annuities.
“…some require you to lock up your money for a chunk of years or face penalties.”
Here, it is relevant that more than 95% of deferred annuities allow the purchaser to withdraw [10%] of their annuity’s value, each year, without subjecting the client to surrender penalties.
“What’s more, you should know that everything that glitters isn’t gold; ‘particularly annuities, which have a series of commissions and surrender charges.'”
A series of commissions?!? I don’t know about THAT. Of all annuities, ten percent pay no commission at all and the other 90% pay a SINGLE commission. Of that 90%, only 3% opt for a trail commission, which is paid more than once.
Hopefully Deaton Smith, CFP®, WMCP® and Alonso Rodriguez Segarra, CFP® have my number, so that they can fact-check their comments on annuities next time. -sjm