Pension roll over

[war62]

My wife and I are working and plan on working until we are in our 60s. We both have 401ks from our employers and we are in good health and yearly combined income is $115k our debt is house and car. We both have a whole life insurance policy $120 a month. My wife 55 and myself 54 have just located our frozen pensions mine is $12000 and hers' is $18000 we have been told by a Prudential agent to roll it over to annuities what would you recommend?

[snafu]

I've never seen an annuity that benefited the client. They seem to benefit the insurance agent more. What are the details? If you are willing to outline your current circumstances listing debt like mortgage & current interest, auto loans & interest we would be able to offer suggestions.. You have $ 18,000. in pension from? which is currently invested in what? Have you participated in a 401K or Roth? What is your vision for the 1st ten years of retirement? Are you seeking to invest $ 18,000. in another product?

[Petunia 100]

Are you vested? Is she?

Do you mean that you can expect annual benefits of 18k and 12k, or do you mean that the value of your service credits is currently 18k and 12k? Are you vested in other pensions having reciprocity with these pensions?

I would absolutely not roll over a cent to an annuity sold to me by a Prudential agent. If I needed an annuity, I would consider low-cost options, such as those offered by Vanguard. I would never consider one with extremely high costs, such as those offered by Prudential.

I also suspect the whole life insurance policy is a bad deal for you. You should be close to becoming self-insured. I suggest you evaluate your need for life insurance, and then shop for a term policy. The money you save each month will be better used to increase your 401k contributions or pay down your debt more quickly.