Skip to main content
No. of Recommendations: 0
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!
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.