my husband has an annuity that he must start drawing from due to the fact that he is 70+ years old. It is earning 3.10 % intrest at this time. Would it be wise to draw it all and put it
into an account that is earning a higher rate of return, or take it in monthly payments.

RichardBondMan

That's very difficult to answer with the limited information you provided. Keep in mind that annuities provide a "lifetime" income, an income that one cannot outlive. Also keep in mind there are different types of annuities. Let me give you some examples (and I suggest that before you rush into a decision that you read your annuity and look first at what type it is). ie. if you are his spouse and he passes and you remain alive, it could be that your annuity would continue to provide a lifetime income to you. This is a joint and survivor annuity. It could be that your annuity is "10 years certain" meaing that if he were to pass after one year of payments to him, then his benefiicary which is more than likely you, would receive payments for the next 9 yrs. His annuity may also on the other hand, be the type that say for example he were to receive only 3 or 4 monthly annuity payments and were pass, then you, his beneficiary would receive nothing. And there are other types of annuities, that why I recommend you fully understand what you have before surrendering or cashing it in. Penalties may be involved, so try to understand these possible penalties. I would recommend that after a brief study that you call the insurance company for further assisitance. Also understand that your current financial situation is factor to consider. If you must generate more income, that's a factor. Also consider his and possibly your health. Say for example he were to have a physical condition that you expect would normally shortens one's life expectany, it might make sense to seek a greater return on your investment than the annuity is paying. Also consider taxes and that most annuities (and probably his) accumulated without being taxed and should it be surrendered or cashed in, might bring you unexpected tax consequences. I hope this has helped and I am glad to see you are seeking advice. I am not a tax attorney or attorney of any sort or certified pubic accountant but you may best be served by contacting these sorts of professionals. I am a licensed agent but not now active in this field currently but have been in the past and therefore, my ideas are simply my own and not to be construed as advice.