AboutJohn D Smith, CFP Expertise I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related financial planning/investment issues. I have a B.S. degree in Financial Planning & Counseling. I am also a Certified Financial Planner (CFP) and have performed fee only investment management and financial planning services for the past 11 years.
Question We have an flex index annuity that has made no $ for several years. We want to rollover the penalty free 10% into something else ($5000). Should we put it into our American Funds or just go with a CD to be safe? We are 53 yrs old.
Answer Hi. More than likely, the reason you annuity hasn't performed well is because of how it is invested vs the annuity itself. If you roll it into your American Funds account, the performance going forward will also be based on how it is invested. I am not saying this to suggest you should not roll it over, I am only making the comment. Regardless of whether you roll it over or not, how it should be invested is based on your specific financial goals and tolerance for risk. and it is difficult to assess either and give specific recommendations in a forum such as this. If you have a specific question in regards to rolling the annuity over or about specific investments, please let me know and I would be glad to offer whatever advice I can.
