Treasury vs annuity

[51togo]

My short term T note $150k@ 5% is due next week. My Chase bank broker suggests rates are dropping so a 3 years annuity at 5.5% or 5 years at 6% is better. I won’t be using this IRA fund as part of my 401 where transferred out from Fidelity. What kind of questions should I ask ie company ratings AAA etc? Not understanding and also not comfortable with annuity, I prefer a lower T note rate at 4.5%, my 401 are mixed with large cap, target 2030, income fund at 3%, company stock, and international funds at $250k each. Like to hear your comments and thanks!

 

[ShokWaveRider]

We just secured a large 7 year 5.55% Annuity (MYGA) with an A++ rated company. Very Happy.

 

[Al18]

Annuity’s are not guaranteed by the Federal government, but a state guarantee association for between 100K and 250K - varies by state.

 

[ShokWaveRider]

Annuity’s are not guaranteed by the Federal government, but a state guarantee association for between 100K and 250K - varies by state.

We are at the limit for obvious reasons.

 

[OldShooter]

Rather than buying one big one, why not buy more than one with different well-rated companies in different states? Still not quite the same as FDIC but that should improve your odds.

 

[ShokWaveRider]

Rather than buying one big one, why not buy more than one with different well-rated companies in different states? Still not quite the same as FDIC but that should improve your odds.

That is exactly what we are doing, we have 3 all in excess of 5% at the maximum guaranteed level for our state. I consider $250k a big one.