No. of Recommendations: 5
I wouldn’t touch an annuity until things calm down and you can have better idea of how secure the companies involved are. This will be at least six months and likely longer. The last time I looked the Vanguard annuities were provided through AIG, I especially wouldn’t touch one of these right now.

If an annuity is right for her the second question is to ask when to buy it. It could be that living on her current assets and drawing them down first until she is something like 70, 75 or older, then buying an annuity would be a better way to go and provide a much larger payback because she is older. This would alos allow her to change her mind if an annuity didn't still make sense then.

One option to consider is that up to when she is 70, it is possible to pay back the social security payments she has received and then start collecting a much higher social security check as if she had waited until she was older to start collecting social security. This is basically buying an annuity from the government and will usually have a higher payback than a private annuity.

Having a fee only(by the hour) financial advisor review the plan and the annuity before the final purchase is made would be a good idea.

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