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...When i called today to find out when I could start withdrawing the rep suggested a FIXED anniuty for some of the monies that I plan to withdraw at that time....

Sometimes with things like a variable annuity that you already have, it is best to keep the money in it until you need it even if it is not the ideal investment. You need to proceed very carefully, before you do anything you need to know exactly what the tax consequences will be and what fees will be charged. thes ecould cost more then it is worth to get the money into a better investment.

It is likely that your "rep" is really a sales person that will get paid a large commission if you buy another annuity. This is much like a used car salesperson trying to talk you into trading in a car to buy a new one. They could be right, but they are trying to make money, not look out for you interests.

If by a "fixed annuity" you are referring to an immediate annuity that is like buying a pension plan, then buying one at 59.5 will get you a lot less than if you waited to buy one when you are older. If it does not have an inflation protection feature then it is likely that the buying power of the annuity will be a lot less decades from now even with moderate inflation. If it does have some inflation protection then look at the details carefully, it might not really cover 100% of any possible future inflation.

If you can delay starting to take social security that will get you a larger benefit and is essentially like buying an annuity. Some people may have doubts about the futurre of social security, but it would be hard to argue that it is less dependable than any of the large insurance companies that sell annunities.

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