crispus
Recycles dryer sheets
- Joined
- Jun 24, 2004
- Messages
- 168
I am pondering what to do with my wife’s lump sum pension. She will be receiving it around October 1 of this year. It is around 400K and will represent about 50% of our total retirement assets. We are both 55 years old and want to retire at 62. I have been approached by a financial advisor who wants to sell us a variable annuity with about half of our money. This product has a guarantied return rate of 7 percent on the income side and investment return rates on the cash side. At 62 we can withdrawl up to 5% a year on the income side. This product has a high fee structure of around 3.75 percent annually. The second product, from another advisor is a fixed annuity which pays 8 percent simple per annum plus a 10% signing bonus. This product on the cash side guaranties no loss of initial investment and upside potential based on stock market returns. A third product buys whole life insurance products from high risk individuals and pays them more then the cash value to sign over the high cost policies. When they die we collect. Morbid huh! I could also go with a conservative spread of mutual funds and etf’s with Fidelity. I want some advice and your reasons why. Thanks in advance.