Personal Finance / Annuity?
I am 40 years old. Recently left a company and cashed out about $300k worth of stock (post taxes). Have about $170 in $401k; have another $250k semi-liquid and another $150k in stock.
Advisor suggesting to invest some cash in a $100k annuity to (1) offset aggressive stock investment (2) still invest towards retirement (3) but to be semi-liquid just in case.
I recognize the high fees associated with annuities hence my question. Is an annuity a good play in my case; are there other alternatives I should explore? I assume an annuity is a good play for some people in some cases, I just dont know if I am in that situation.
Any advise?
Most annuities have such high fees, that they are rarely a good idea. Not knowing exactly what annuity your advisor is recommending makes it hard for me to say with certainty it is a bad idea, however. Vanguard has some lower expense annuities. However, you have to research them yourself, as they won’t pay a commission to your advisor.
Giving advice is difficult because I am not clear on your entire financial picture. What is the 401k invested in? What is the $250k “semi-liquid” investment?
cRaZyNeiL’s – Perpetual Annuity
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