The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  https://boards.fool.com/convert-a-cd-to-a-fixed-annuity--12981722.aspx

Subject:  Convert a CD to a Fixed Annuity ? Date:  7/23/2000  4:13 AM
Author:  KShimada Number:  23561 of 105350

My 92 year old Father-in-Law has a CD which is about to mature. He has been rolling this over for many years and it has grown to a substantial amount. His bank wants him to convert this to a Fixed Annuity.

I am skeptical of this move for several reasons. This particular Annuity has an exit fee that starts at 10% the first year and decreases 1% over the next 9 years.
That would make him 102 before he could take a withdrawal without a penalty.

HIs pension and interest on his other investments more than cover his daily living expenses and he has a large amount invested is several Mutual Funds.

The only reason he may have a need for the money in the CD is to pay for an extended stay in a Nursing Home. He does not have Long Term Health Care Ins.

His bank has served him well over the years and I am wondering if I am missing something on this.

Joe




Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us