WHAT HARRY SAYS: Because your parents have a good source of fixed income in their pensions and Social Security, I don't see the need for more from an annuity, even an annuity tied to some index. If you pressed me, I could see a fixed annuity to give them enough to fill the gap in their monthly living costs. It appears now that we may see modest increases in the rate on tax-frees, so cash is OK to hold for those investments. I also can suggest that they consider putting about one-third of their cash into their present mutual-fund holdings or others that they choose. They can go to Fidelity, T. Rowe Price and Vanguard for their recommendations. Today's life expectancies are high, and your parents are young enough to have a heavier investment in stocks for the long run.
Email Harry Gross at harrygrossDN@gmail.com, or
write to him at Daily News, 801 Market St., Philadelphia, PA 19107.