Non-Market Oriented Investments - Safer Alternatives

Q. My current annunity policy is up for renewal and I am being offered 3.10% for a 5-year term. I am considering going with the #### Series with the combo of 10% in a fixed account, 20% in Performance Trigged Index and 70% in a 2 year Point to Point.

I already have money invested in mutual funds for this money is to be invested only in SAFE areas. What are your thoughts? Thanks a bunch.

A. The main question is whether this money needs to stay in an annuity. If you are under 59 1/2 or have a huge taxable gain in the annuity then you will need to keep it in an annuity.

If it doesn't have to be in the annuity then I would not recommend it. You mentioned that you have other money in mutual funds and that this is for safe areas. There are a lot safer products that wouldn't be based on the performance of the stock market at all. That way, you use your mutual funds for the market portion of your portfolio and other non-market oriented investments for the safer portion.

For instance, I use a real-estate based investment for my clients that pays 6-7.25% in dividends, has the potential for some capital appreciation and is stable in value.

If the money has to stay in an annuity then your options are more limited. As you probably know, I am not a big fan of EIAs. That being said, #### has some that are shorter term and pay a low commission so that the internal costs are better. But this would be far down the list if the money doesn't have to be in an annuity.

Your posted comments on this and other questions are welcome.
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