I posted earlier but now have more information and am a bit more confused. My uncle bought me a whole life insurance policy when I was born for the face amount of $100k. He's been paying any premiums until now. Since interest rates are not great right now, my annual premium is near $600. The cash value of the policy is about $6,000. After doing my own research, I felt that it would probably be best to put this money into an annuity fund. I have a meeting with the NY Life agent tomorrow and am aware that he will try to convince me otherwise.
Is an annuity a better idea than cashing it out and losing nearly half to taxes? What kind of annuity would be best? Deferred?
I am 23, working full time and going to school part time, hoping to enroll in a physical therapy program in two years.
Thanks again and apologies for the repetition!
It would be incredibly stupid of you to buy an annuity in your situation. The salesman will try to convince you otherwise. If he somehow convinces you that an annuity is a good idea then call vanguard. They sell annuities as well to the few people who benefit from them. Vanguard annuities are far better and have far lower fees.