Retiree Investment…
Please advise:
My wife (64) fully retires in about 2 years. She has over 300K in her 401K. I’m (66) retired and have 100K in my 401K. We also have 400k in CDs. We owe no money. We have plenty of income from pensions and Social Security for all our daily expenses and pleasure. We have 2 children and 4 grandchildren.
We like to rollover/invest in accounts that can provide extra income in 5 years and to be able to withdraw any amount if needed for whatever expense. So what is the best investment nowadays… what options do we have? How safe are annuities vs CDs? How do I know if an Ins Co like Midland National Life is safe to invest? Thank you.
Permalink Submitted by Al Fry on Fri, 2008-06-13 17:04
Annuities with guarantees are only as strong as the underlying investments and carrier backing those Guarantees. CDs offer some FDIC protection. Annuities have higher fees, however offer potential for more gain. Some annuities have built-in increases for future income (for an additional fee, of course). You have to do what you are comfortable with, weighing risk vs. return.