Should I invest in a variable annuity?

Thanks for reaching-out.

It is generally very difficult if not impossible to provide a simple yes/no answer to this type of question without having much more detail regarding your situation and needs.  That said, here are some things to think about:

• Has this advisor or any other financial advisor completed a financial plan for you?  If not, you should do so as any annuity recommendation should be made in the context of a solid financial planning exercise that focuses on your retirement spending, income, liquidity and bequest needs.
• It sounds like you already have some annuity income--maybe through TIAA-CREF and your teaching position?
• Are there any other sources of guaranteed retirement income beyond Social Security or the current annuity (for example, pension income)?
• If your 403b is through TIAA-CREF, there will more than likely be annuity options you can explore with the 403b funds--you should explore this option.
• When you think about retirement and retirement spending, will Social Security and the annuity income cover your basic, essential expenses (food, rent, utilities, healthcare, insurance premiums, etc)?
• Is the annuity being pitched as a wealth builing or asset accumulation vehicle?
• Has the advisor discussed or suggested any "living benefit" features for the variable annuity?
• Has the advisor discussed your liquidity needs?  It seems that the $100K makes-up most if not all of your liquid assets?  You will need some liquidity as you approach and enter retirement.

Overall, it sounds like much more research and information is required before you make a decision.  Take your time and do not rush into any decision.  Click here to view some variable annuity-related resources on Annuity Digest.