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Greetings, JohnP14, and welcome. You asked:

Recently a representative from my mother's bank approached her to have her money switched from a money account into an annuity. She fears taking that advice..What information does she need to make any changes at her age...I would like to pass your wisdom to her...

I don't know about wisdom, but you'll certainly get some opinions. Cameron fairly will expressed mine. If your mom is as old as your subject line indicates, then IMHO her bank rep is merely looking for a commission on the sale of the product, and the bank is hoping she doesn't live beyond her life expectancy. In short, this is a win for the bank and a loss to your mom and you.

The annuity is appropriate for those who desire an assured source of income. You don't say whether this is an immediate fixed or variable annuity nor do you indicate whether a survivors' benefit is attached. My bet is it's a plain vanilla fixed annuity with no survivor's benefit. That means your mom would get a fixed stream of income for as long as she lives, but when she dies there's nothing left for heirs. At her age, she can probably do just as good for herself on her own. Nevertheless, if having a "guaranteed" source of income is vitally important to her, then an annuity is appropriate. I would, though, shop around. Almost certainly you will find a better one than any offered through a bank, most of which are greedier (if that's possible) than insurance companies. In short, shop first and then buy.

Regards…..Pixy
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