Inspired and encouraged by what I've read at the Motley Fool, I am finally taking charge of my investments (and my retirement) at the age of 51. I have two non-qualified annuities which I purchased five years ago. I thought they were doing pretty well (15% average returns per year) until I compared them to my IRA mutual funds, which have averaged over 20% per year. I want to cash in the annuities and invest the proceeds myself. I worry that I'm too old and too close to retirement to do this, but figuring in the taxes I would pay (28%) and the 10% penalty plus surrender charges, I think I would still come out ahead in 10 or 12 years if I invest the money myself in Foolish Four and Cash King stocks. I don't have any retirement plan or pension funds through my work; the funds in these annuities and my IRAs will be my main source of retirement income. I want to do this not only for my own retirement but also for my heirs. I have read that the tax liability on annuities would be much greater for my children than if the money were in an index fund or stocks.Is my thinking on target or am I kidding myself? Does this sound like a good plan? I just wish the Motley Fool had been around when I was 25 or 30!! Thanks for any suggestions or help!
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