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Hi uwalum,

Thanks for the reply.

My Dad has always preferred CD's until this came along. The bank sold them on this when he was asking questions about current CD rates to roll them over. He and my mom just dropped that on my yesterday. They signed the contract this past Thurs. When I asked why they did it they said that it sounded good to them.

They are old school. Want to stay with Fleet. They have everything with them. I've tried to get them to think about other institutions but I don't want to push them. Even felt like letting this go but I just couldn't without getting a straight answer from the bank on why they sold them this thing.

I think they liked this because they pitched the hands off guaranteed rate. The policy allows for a 10% penalty free withdrawl each year. They felt that would be more than enough should they need additional funds. They're getting older and whatever we do it'll need to be hassle free and easy to follow and understand.

How risky are these Fixed Annuities? What the heck is the advantage? If we setup an automatic rollover on a CD's laddered to give them liquidity wouldn't that pretty much guarantee they'll keep up with inflation if that starts going up?

He said that 18month CD's were around 4.5%. That's pretty close but isn't that close to a 10yr low on average? Pretty sure he was getting 6% last year.

Read an advice column on bankrate.com and the guy recommened I Series bonds. But I think we'll need to hold the actual bond on those and I don't think they'll want to do that.

Learning as I go along....

Thanks again.

Scott.
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