I have an annuity with pacific life, it is a 7 year contract and will mature December 31 2009, it is in a fixed account making only 3% at this time the value is $86,600.00 and if I take it out now it will be $83,600.00. I am 62 and will not start taking rmd's until 2016 when I will be 70 1/2... my question is should I leave it at 3% until maturity?? Take it out now and put it in a higher interest bearing account and if I take it out what would be best , another annuity with a fixed % with a different company or a bank cd/ira at a fixed % rate?? If I choose the bank route should I go with a short term in hopes of rates going up or choose a longer term? Also I have heard of a metlife 10 year 6.75% fixed annuity do you know anything about it? I realize I would loose money by taking it out early but at 6.75% it would make it back... any advise or help would be greatly appreciated and even if I do nothing at this time I still only have about a year to decide what to do..

First of all, you have to figure out what the contract penalty for withdrawing before 12/09 will be. Compare that with the difference in interest earned between 3% and the highest guaranteed rate you can get very safely(bank CD's or treasuries)at the present time.

If the differrence isn't that much, leave it where it is if you feel that the company is very safe.

This money is money you can't afford to lose on. So, you are looking at bank CD's or treasuries for an investment at this time. I would encourage you not to go long term with your CD term or treasuries at this unstable time in money markets. Everyone needs some breathing time.

If any other questions, feel free to ask.