MEG GREEN Q: In choosing between investing in an annuity versus a mutual fund, isn't it true that an annuity allows my financial advisor to pick and choose the sectors in which to allocate various percentages of my investment and change those sectors when prudent? Whereas a mutual fund is entirely managed as a ''packaged investment'' based upon the desired risk factor?
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MEG GREEN Q: I read your column every week and I know that you are not a fan of annuities. And after seeing last week's ''Dateline NBC'' program, I am more confused than ever. I am a teacher who will be retiring after 35 years at the end of this school year. I am 60 years old and will be completing the fifth year of the DROP program. Of course, I am being inundated by calls from financial planners and insurance company representatives who are trying to sell me different types of annuity plans.
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MEG GREEN Q: I am 63 years old. Last year I went from full- to part-time work. My husband is 63, retired and collecting Social Security. I have a 401(k), worth about $200,000 and a personal account with Vanguard worth about the same. Our house and cars are paid off and we pay off our credit cards monthly. I plan on retiring at 66 at which point I believe we will need an income of about $50,000 a year. Does it make sense to purchase a variable annuity? If so, how much of our savings should we use...
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MEG GREEN Q: I am 57 years old, and after a 10-year-plus career at a major corporation, I have been ''outsourced'' to another major corporation. I have both a pension and 401(k). My new company also offers a pension and a 401(k).
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MEG GREEN Q: Can you please clear up something for me about FDIC insurance? My husband and I have more than $100,000 deposited in our bank. According to my banker, all the money is insured. But I see the signs all over the bank that say ``FDIC Insured only to $100,000.''
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MEG GREEN Q: I would like to consolidate three credit cards that have outstanding balances totaling approximately $23,000. I pay about $800 monthly toward all three cards but do not see a huge deduction monthly due to the high interest rates the banks charge. Is there a way to get the banks to reduce or eliminate the interest rates or come up with a settlement amount per card to pay off the money that is owed on these cards?
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MEG GREEN Q: I have $40,000 in a 401(k) and $30,000 in an IRA. I have been disappointed with the losses I have been experiencing in the 401(k).
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Q: A friend of mine said he is considering getting a loan from his company 401(k) to pay off the remainder of the mortgage on his second home: approximately $60,000 with 20 years to go. His reasoning is that all of his monthly payments towards the loan would be going back to his 401(k) account rather than a large percentage of his payments going to interest payments if he maintained the mortgage. To be clear, he feels that the total of principal payments and almost all of his interest payment would...
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Q: My wife and I find that every financial person we deal with has a vested interest in getting us to consolidate our money with them. We need some unbiased advice.
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Q: I want to purchase silver -- not silver stocks, the metal itself. I've been reading about what a good investment it is now, and I also learned about it on CNN. However, I haven't a clue how to really go about it. Some of the websites I've found talk about delivery no less, I don't think I want to physically have it. However, one site says it will store it for you at ''reasonable rates.'' My question is how does one know if these sites are reputable?
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Q: I recently heard that the Magellan Fund has reopened to investors. I have $9,000 to invest in my Roth IRA, which is about 25 percent of my portfolio. Would it be wise to buy Magellan or is there something better? I have 20 years until retirement.
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Q: I have made many mistakes in my life. Now I find myself on the verge of a foreclosure on a house that is barely habitable. I need a realistic and knowledgeable voice to make sense of this for me. I refinanced an aging home several years ago. Then, to escape ballooning payments, refinanced again with another company. I had hoped to find a buyer for the house where I raised my kids, as-is -- it needs much more work than I can afford. I became ill, lost my job and used most of my pension to try and...
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Q: I have $150,000 in a CD at 5.25 percent for 6 months, and a few thousand in my savings account. Should I pay my mortgage of $35,000 at 6 percent, or should I keep rolling the money in my CD? I still have 19 years to go to pay that mortgage and I am over 60 years old, any suggestions?
