cancel
Showing results for 
Search instead for 
Did you mean: 

Annuity itch...

tag
IOBA
Senior Contributor

Annuity itch...

I have this strong urge to cash out an IRA annuity (the age requirement is met and the annuity has gone through the 7 year IRS requirement).  This annuity will yield about $5900.  I would apply the funds directly to my mortgage.  (That's equal to about 6 months of regular payments.)

 

The annuity is earning 3% and my mortgage is at 3.125%.

 

My goal is to have the mortgage paid off in/by December 2017.  On paper, it's impossible, but I have accomplished the financial impossible before.

 

Anyone want to talk me out of cashing out the annuity to pay down the mortgage??

 

The goal retirement date is January 2018.  Mortgage must be paid off by then or very dang close to being paid off!

 

Edited to add - don't need the annuity for retirement.  Pension will be enough to live off of.  Plus I have my retirement account (approximately 600k) and another annuity (approximatley 7k) as emergency back up.

Message 1 of 3
2 REPLIES 2
Anonymous
Not applicable

Re: Annuity itch...

Are there any fees associated with cashing out the annuity or with paying off the mortgage early? If not, I think you're making the right long term call.

Message 2 of 3
IOBA
Senior Contributor

Re: Annuity itch...

Nope, no fees for cashing out the annuity or for prepaying on the mortgage.  Smiley Happy

 

I have a strong dislike for my lender.  So to get them out of my life sooner is better.

Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.