Dwindling Retirement Funds and Agent Recommendations

Q. I retired about 4 years ago. I foolishly invested all $240,000.00 retirement money in a varible annuity receiving a monthly income of $1,541.00. My funds are now down to about $144,000.00. I was offered a deferred annuity master dex ten to help me have an income for life. Another agent suggested I talk with my current agent first. Is there any hope for me? I do need an income now. I will be 59 1/2 jan 2006. Help! Help! Help!

A. First, the last thing you want to do is move from the VA to the Master Dex. That would be jumping out of the frying pan and into the fire. Don't even talk to the advisor that recommended that because he/she does not have your best interest at heart.

Secondly, what to do with the VA? We want to find a way to make that work for you and it should by just making some adjustments.

Can you give me some more info?

How much income do you need off of it per month right now?

You say that these are retirement funds and that you won't turn 59 1/2 until 2006. If you are currently taking money out without an IRS penalty then you probably have set up what is called a 72T. A 72T (or it's equivalent) basically says that you will take out the same payment for a period of 5 years or until you turn 59 1/2--WHICHEVER IS LONGER.

If you are doing that then it will limit your ability to stem the red ink.

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