[USER]

I recently turned 70, single, rent, and I’m still working full time. I found a Smart Advisor on D. Ramsey’s website and seen her several times for retirement planning.

This person is not a fiduciary. I did not plan well for my financial future during my lifetime so I need someone now to advise.

He recommended taking some of 401k (don’t have much) into a fixed index annuity.

I am clueless to most financial stuff. Do not do numbers and not into this so really ignorant. Not been a good steward of my money.

I don’t know whether to trust this person or not. Any thoughts on this type of annunity?

I’m not a risk taker. Stupidity doesnt help me either. Thank you for any insights.

No unkind words as I already have plenty of shame.

[Debra]

Many of my nursing colleagues that were about to do this got a second opinion and opted against it.

Never trust someone who is likely getting a commission to sell you on something.

[Lisa]

I would find a fiduciary. Annuities are not in my retirement plans and I’ve always been told they are not a good fit for 90% of people.

You’ll need to find a reputable fiduciary to understand if you’re in the 90% or 1%

[Sandy]

Until the person across from you can explain something for your complete understanding then do not give them control of your money.

And should you decide to proceed, get a second opinion with paperwork in hand.

[Janet]

Please do not take money out of your 401K and do not buy annuities. This person does not have your best interest.

He will make a commission on selling you an annuity. Annuities are not a good investment.

[Linda]

I believe Dave prefers a fiduciary, someone who is obligated to work towards your best interest.

Maybe Dave can refer an advisor who is a fiduciary.

[Brenda]

I would find a good financial advisor at one of the reputable brokerage houses. That understand both your needs and your wants in retirement. If you need to interview several.

You also don’t have to remove your money from the 401(k). You could talk to your 401(k) fiduciary and discuss your needs and wants with them.

I do not mean a representative from your employer I mean a representative from the 401(k) fiduciary.

The people your employer sent the money to. You can ask them to do several projections based on several different scenarios that they would propose and go from there.

This is the service they offer and you should not be charged for this.

[Brenda]

Also remember that all of the Ramsey advisors get paid commissions. Just because I watch a few of his videos on Facebook I am now getting called by them.

I am steadily blocking the calls.

[Linda]

Check out a radio show on moody radio called Faith and Finance, it’s on weekdays and you can call in and ask financial questions.

I have heard him say he wasn’t usually a fan of annuities but don’t remember the context of the question so it could have been in that instance.

I have learned quite a bit listening to him.

You mentioned he is not a fiduciary, I don’t think I would be comfortable working with someone that is not a fiduciary.

[Kim]

That is a scam. They must be using Dave’s information, likeness etc.

I would search and hire my own fiduciary.

[Lisa]

Find a fiduciary / certified financial planner (CFP). They are who will look out for your best interest.

You don’t have to go with the first place you work with.

As long as you haven’t signed any paperwork, you are free to interview several planning companies.

[Maureen]

Ok, I’m not in America so it may not apply but, your 401K is a retirement fund through the company ypu work. for I think. The same as our provident funds.

I have an independent financial advisor and he advised against taking money out. Of your fund.

I have an annuity in addition as our. Provident funds don’t normally provide enough for a.comfortable retirement.

I’m 72 and you are not going to get enough growth in the years you have left to make it worth your while.

[Peggy]

No shame. Many of us didn’t really think about all of this until our 50s or so.

I purchased a three year annuity almost three years ago. I had received a small inheritance from my dad’s passing, and I wanted to pause before I spent it on something. It matures in May, and I’m excited to finally get it out.

It was locked in at 3.3%-right before interest rates went into the 5s.

The salesman kept saying it’s always good to diversify your portfolio. You have a Roth, 401k, CDs, savings and now this.

I really didn’t know what I was doing, but I quickly realized I would’ve done much better with even CDs at the time.

I follow DR, but also follow Suze Orman and Clark Howard and all caution on annuities. I wish I would’ve known more before I jumped in.

I’ve found a fiduciary who works for lpl financial and am happy with him.

Best of luck to you.

[Sabine]

Being 70 years young, I would only put my money into “something“, which allows me to get to it quick, if need to be.

And nothing that costs a lot of any type of deposit charges, be it monthly or yearly.

Also, think about a Power of Attorney for a person of trust, should you have a stroke in 3 months and can’t take care of your money business for months.

[LaDonna]

Find an advisor you can pay by the hour, not someone who makes a commission or takes a percentage.

Good books to read are by Ramet Sethi I Can Make You Rich to learn what percentages of your income should be spent in different areas and DL Collins The Simple Path to Wealth.

IMO both of these are better than Ramsey although the basics are the same everywhere.

[Darla]

Please read below:
From the words you wrote above, the person you spoke with honed in on your lack of RISK, your SMALLER retirement nest egg, and, perhaps, you indicated that you were looking for a predictable monthly INCOME in the future.

Is this recommendation a fixed annuity, indexed annuity, or a variable?

Annuities can offer guaranteed lifetime income, protections from market downturns, and lower risk. Someone approaching retirement would seek those qualities.

There is a reason that the FA recommended an annuity for YOU. Ask them WHY they chose that investment vehicle instead of mutual funds.

That will give you a good idea of what their train of thought is.
ALWAYS call back with questions.

If you are uncomfortable, it doesn’t hurt to get a second opinion.
For those who are saying this is a bad choice, they weren’t part of the discussions between you and your FA.

Annuities are NOT for most people, which is why you are reading so many negatives in the comments, but your commentary leads me to believe that it “could” be a good option for you.

I also think you said that this rollover would be a partial one, and you would be leaving $ in your 401(k).

If you do a simple Google search for “Who should consider an annuity” that may clear up some concerns for you.

I’m not an FA, but I do work in the industry.

Your situation is unique to you. That is why you got the recommendation that you did.

[Author]

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