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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.


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