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Goofyhoofy writes,

My Mom is more conservative. She decided that she would take a portion of their savings and invest it in "coins" and "an annuity." The coins are worth half what she bought them for, and the annuity company went out of business after two years, and the income stream immediately went to zero.

It could happen. Companies go out of business all the time. I'd recommend a heck of a lot more research, including the fact that even "healthy" companies sometimes go upside down.

Most, if not all states have some kind of gauranty fund for life insurance products (including annuities). They typically protect up to $300,000 in value if the insurance company goes under.

Did your mother eventually recover any of her losses under one of these programs?

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