Personal Investment & Financial Planning Q`s/retirement planning


  I'm 62 and plan to retire at 65.  I have a bunch of IRA money and cash savings.  Our whole savings is $345,000 which is everything we have.  Our bank financial consultants sat down with us and said we should put it all in an index annuity and cash savings in fixed annuity because it is all earning practically nothing in the bank.  The one is 5 years and the other is 7 years.  Looking at Great American and Security Benefit plans that he suggested have a lot of penalties and fees.  So now we are totally at a loss.  Should we keep everything in the bank earning nothing or risk fees or is there something else that can provide safety and better interest?  We are kind of unsure whether the bank counselor is looking out for our interest of their interest.  Is there some independent experts who we can trust are looking out for our interest.

Hi. This is a difficult situation to adress in a forum such as this so I will offer thoughts that I hope will be helpful. To start, I am always cautious when someone recommends annuities as the only option (especially index annuities) since there are alot of things with annuities that do not typically get explained in enough detail or properly. In some instances, annuities may make sense, in many instances, they dont. If you are concerned about whether or not your banker has your best interest in mind, yet you are still open to working with him/her, you could ask for a separate set of recommendations that do not include annuities and then ask him/her to compare the 2 side by side and explain the pros and cons of each.

In regards to whether or not there is another avenue to pursue regarding advice, the answer is yes. If you live near a local Charles Schwab branch I would stop in and ask to speak to one of their consultants. Given your situation, they may be a good option for more unbiased advice than you might get from a bank. I hope these thoughts help. Please let me know if you have any follow up questions.

Personal Investment & Financial Planning Q`s

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John D Smith, CFP


I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related comprehensive wealth management and investment concerns.


I have been providing fee only investment management and comprehensive wealth management services for the past 19 years.

I have a degree in Financial Planning & Counseling and I am also a Certified Financial Planner practitioner.

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