Michael L. Wilson, MBA, CFP®, CRC®

Hi Walter, as a general rule, the longer you can wait to convert ("annuitize") your deferred annuity to an immediate annuity, the higher your payout will be. So if you already have enough income now to meet your expenses, waiting may make sense simply because you don't need the extra income. You might also consider the tax benefit of waiting, since you will not owe any income tax on your annuity until you start withdrawals.

The other factor to think about is your beneficiary option. If the annuity will be paid out over your life alone, for instance, then consider your health and longevity in your family. If you're in good health and have long-lived family members, waiting to convert makes sense. If your health is not so good and/or your family members tend to live shorter lives, then converting now could make sense. If you have the option to stretch your annuity payments over two lives (you and a spouse, for instance), then you can delay if you wish, knowing that even if you should pre-decease your other beneficiary, she will still receive annuity benefit payments.

Those are just a few factors to consider.

Mike

Hi Ian, at the end of 2011, the total value of all stocks on all the various world markets was around $47 trillion. The US stock market represents about $16 billion of that total, or about 1/3rd of world stock. So one could argue that a truly globally diversified stock portfolio should be 67% international and 33% US...

But in practical terms, how much or little you allocate to international stocks is a function of your investment goals, your time horizon to invest, how the other pieces of your total portfolio (stocks, bonds, cash, etc.) will interact with international stocks, etc.

Russ hit the nail on the head: you'll get several different perspectives on this one. To narrow down your question, a range between 10% up to 50% of your total stock allocation may be appropriate, depending on your situation and unique circumstances.

Mike

Hi Miguel, the short answer to your question: both places! Markets, economies, currencies and countries cycle in and out of favor over time, but it's very hard to predict accurately when it's "time" to invest in one place or move on to the next. So rather than try to guess which geographical area is better, a solid long-term strategy is to cover all your bases by investing at home and abroad--at the same time. Taking this long-term diversification approach has historically paid off, and I've yet to see a good reason why that won't hold true in the future. Mike