I had a meeting with the investment guy at my bank today. I have put off talking with them for a very long time and figured
its time to be a little more active in my finances with the way the economy is right now.
He gave me some good basic advice that wasn't anything too drastic for me. But he also said that next time we talk that I should consider transfering the money from my IRA CD's to Annuities. What he explained to me made sense and he didn't pressure me into anything.
BUT, I do not know anything about annuities and if they are good for me or not. I seem to recall someone else on here that said annuities are a bad investment. If anyone on here has a recomendation or common sense advice I'd appreciate it. I like my Cd's but they are hardly earning anything right now. I definately want the money in something thats considered safe and conservative.
But I think I can do better than interest rates on CDs.
On a different note. Still no heat used here. I'm still in Fern's No Heat Contest! Its warmed back up a little so I should ok for awhile yet.
I also went to the dentist yesterday for a checkup. "Look MA, No Cavities".
Annuities
October 8th, 2008 at 12:54 am
October 8th, 2008 at 03:01 am 1223434876
October 8th, 2008 at 03:04 am 1223435066
You may need to make a change with your IRA's from CD's just to keep up with inflation...specifically you need to be investing in mutual funds...but not within an annuity.
I'm sure other's will chime in...do your research...annuities are most likely not a good investment for you.
October 8th, 2008 at 03:29 am 1223436594
Look for better CD rates is my advice. Even ING I believe has a IRA vehicle now don't they?
October 8th, 2008 at 03:48 am 1223437704
October 8th, 2008 at 11:47 am 1223466466
October 8th, 2008 at 01:30 pm 1223472646
(This is not to say that all annuities are wrong for everyone. I think they may be useful in very special circumstances, but it doesn't sound like they apply in your case.)
If you want to look for alternatives for your IRA money, you could look in to mutual funds, or at the very least, as others have recommended, shop around for better CD yields.
October 8th, 2008 at 02:43 pm 1223476991
October 8th, 2008 at 04:26 pm 1223483219
From what the investment guy said I don't think there were any heavy fees involved with the annuities he mentioned. He claimed that it was a way to make a higher interest rate without the risks involved with stocks (in mutual funds). But I do assume like most of you said that he would get a huge commision on the deal.
And baselle, to answer your question, my interest rates on my CDs range from only about 2 percent to a little over 5 percent. So thats why he said I need to get out of the Cds. And Mutual fnds haven't been performing well so I'd rather stick to lower interest rates than the highs and lows. In any case I'm heeding all of your warnings and staying away from the Annuities.
Thanks.
October 8th, 2008 at 05:26 pm 1223486768
It's stories like yours that make me upset at the financial industry...who are not honest in explaining all the details of a financial decision. I think it is partly what has us in this financial mess. Ughh!
Sounds like we convinced you, for that I am glad.
October 9th, 2008 at 03:01 am 1223521277
2% on a CD is a bit low, especially when you can get about 3% from ING Direct that's fully liquid. But 5% isn't bad compared to the Fed Rate of 1.5% - and for all your CDs, they're going in the right direction - up. Not many stock guys can say their positions are doing the same thing.
October 9th, 2008 at 05:58 am 1223531917
now I know its the right decision. Thanks again.
You are right about the Cds too baselle. At least I know what I'm getting from them and it keeps going up (even if its just a little).