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TIAA-CREF'S PERSONAL ANNUITY SELECT There are many annuities on the market, but this is the only one we could uncover with no surrender charge and a return double that of the average CD. tiaa-cref's tax-deferred annuity returns a fixed 4.7% annually through next March (when the return will be adjusted) for contributions made through October. The program works much like a money-market account but with a few restrictions. You make a deposit (the minimum is $250) and add to it as often as you like. Once you reach age 59 1/2, you are allowed but not required to make a withdrawal every six months. There is a 10% penalty for early withdrawals.
If you have more than enough money in safe havens to cover your short-term needs, how will you know when to shift some of it back into stocks? Hugh Johnson, chairman of First Albany Asset Management, says he would wait until the market showed a broad, consistent rise that lasts four to eight weeks. "I know I'll always be a little late to the party," he says. "That's O.K. with me." --With reporting by Cybele Weisser
Jean is a columnist for MONEY magazine. You can e-mail her at moneytalk@moneymail.com