I recently met with an 80 year old Woman that I hope to be like when I reach that age. She is so sharp, active, and involved. She asked me to review her investments and let her know what I think. She does not have any concerns regarding income or doing what she pleases. She does not have any debt. She has a number of CD’s that mature at different times, all with very low interest rates. Some of her accounts are IRA’s, some are not. Every time a Cd matures, she goes into her Credit Union to renew, which is fine. But here is what has happened in the past:
When she was 75, an IRA CD matured and she was convinced to transfer the funds to an Index annuity with a 10 yr. surrender charge! Again, at age 80 she was sold another annuity, this one with a 12 yr. surrender charge! I have nothing against annuities; however, 10 and 12 yr. surrender charges are horrible. In my opinion these transactions benefited the representative and not this woman.
She is widowed and her children do not live in the area; they do visit frequently. I know a lot of her generation does not like to share their financial information, but please, for the sake of your Mothers, start the conversation.