Q: I retired several years ago from the Miami-Dade School system. While employed, I used the 401(k) retirement vehicle (an annuity) for savings and after I retired I had well over $100,000 in that account. It keeps growing at 4.5 percent. With the economy so volatile, I'm wondering if I should take all my money out of it, pay the large penalty for taking it out before 2012, and put it in an FDIC insured retirement CD at a bank.

KK, Hollywood

They all have ratings according to the insurance company's health, among other criteria, and I encourage everyone to check out the health of the insurance company prior to investing in any annuity or life policy, for that matter.

A rating of A+ or better is where I would be looking. However, I do believe the providers to the Miami-Dade School System are all quality companies by necessity.

It's not easy for a company to get through the gate to offer the choices you get on your 401(k) or 403(b) options.

You can sleep at night. The economy and the markets may be volatile, but your 4.5 percent annuity is not.

That being said, most annuities permit you to withdraw 10 percent per year, penalty free, so if your nerves are telling you there are too many of your eggs in one basket, then start to move a little bit out into another account.

If you don't need the funds to live on, then reinvest it where you like.

Just know that you will be required to take your required minimum distribution (RMD) after age 70 ½, so guide yourself accordingly.

Meg Green is a certified financial planner. Mail questions to her c/o Sunday Business, The Miami Herald, 1 Herald Plaza, Miami, FL 33132 or send an e-mail to

askmeg@MiamiHerald.com. Include your full name and city of residence.

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