I have us savings bonds. They are earning 3 and 4%.. I have heard about fixed index annunities. My question is: Would I be better off keeping my money in the us savings bonds or cashing them in for a fixed index annunity paying a higher interest rate? I realize that if I cash in the bonds I have to pay tax on the interest. I am retired and am interested in a monthly interest check. What should I do?

My last two years my mutual funds averaged 16 percent, and I have never had less than 8 in the last 10.

We won't discuss what Enron did to my savings.

But annunities have a risk of loss, you can actually loss money, savings bond are safe.

Normally close to or in retirement most professoinals recommend keeping most of your money in more safe investments even if the rate is lower.

If you put 100,000 into some funds you can end up lossing money in short terms ( not usually long term) but in retirement you don't have 10 years to let it come back up.

I keep someof my funds in annuities that are secure, but again I am getting that 4 or 5 percent at best.

So talk to your local bank on their views, talk to an annunity investment broker ( not someone with a life insurance company)
And you have to see what works best for you.

Since you already have the bonds I would keep them, but I would not have done it that way in the first place, think about everything before you act