Here's the history.
The annuity was part of DW's mom's estate. $8000, in 1984. The initial interest rate was 12% for 2 or 3 years, and then was reduced gradually over the years, but with a guaranteed minimum of 4%. We put the papers away, and just let the annuity continue. For some reason I thought the payout was supposed to be over a 5 year period.
Last year, I called the provider, (third one over the years), and found out that the minimum payout was 10 years.
The current full annuity value is $60K, and the surrender value is $50K....
At present we don't need the money, and the way our finances are structured, our income tax is zero. That's "at present". Our IRA's still have several more years to run, (present plans). Some other "investments" are fixed with a minimum of 5+% return (inflation adjustable up). (IBonds)
The question?... Suppose we "need" for whatever reason $50K... for a car, unexpected bills, etc, etc... Where should the money come from?
Annuity... Investments... Reverse mortgage... or maybe the outright sale of the home. We eventually plan to move to the apartments in our CCRC. Am kinda holding the house sale in reserve, in the event of needing $$$ for nursing home care for an extended period. (medicaid)
Not critical, but just thinking ahead.
The annuity was part of DW's mom's estate. $8000, in 1984. The initial interest rate was 12% for 2 or 3 years, and then was reduced gradually over the years, but with a guaranteed minimum of 4%. We put the papers away, and just let the annuity continue. For some reason I thought the payout was supposed to be over a 5 year period.
Last year, I called the provider, (third one over the years), and found out that the minimum payout was 10 years.
The current full annuity value is $60K, and the surrender value is $50K....
At present we don't need the money, and the way our finances are structured, our income tax is zero. That's "at present". Our IRA's still have several more years to run, (present plans). Some other "investments" are fixed with a minimum of 5+% return (inflation adjustable up). (IBonds)
The question?... Suppose we "need" for whatever reason $50K... for a car, unexpected bills, etc, etc... Where should the money come from?
Annuity... Investments... Reverse mortgage... or maybe the outright sale of the home. We eventually plan to move to the apartments in our CCRC. Am kinda holding the house sale in reserve, in the event of needing $$$ for nursing home care for an extended period. (medicaid)
Not critical, but just thinking ahead.