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I have a question:

My Mother, at 78 (and of course retired), has money sitting in a tax-free annuity (I believe it's with an insurance company), that's earning approximately 6%. She says that this is money she doesn't need to live on, and is "play money".

I've encouraged her to pull this money from the annuity and reinvest it in the Vanguard 500. The problem is, that this would now be a taxable account. But even with paying 20% per year on capital gains on the Vanguard 500, she should be able to dust her old 6% return on the old tax-free account.

Any feedback???

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