Q: For the past 17 years, I've had a good retirement, but in this economic chaos, we need what little additional income I get from any annuity I have. As you know, FDIC does not cover annuities, and I am in a real quandary. I've been thinking of withdrawing from the annuity and putting the money somewhere under the FDIC umbrella. But if I do that, I will incur an early-withdrawal penalty of several thousand dollars AND lose the monthly income from that annuity. And yet, if I leave the annuity untouched as it is, the insurance company might go belly up, and I could lose the whole annuity. I will be 80 next year, so I am not about to re-enter the workplace! Do you think I ought to leave my annuity untouched? The company seems to have received good ratings in the past.

A: Although FDIC does not cover annuities, state-run programs typically cover them. First, contact the insurance company to inquire about its solvency. Then contact state-insurance regulators -- both in your state and in the state where the insurer is based -- to get their analyses of the insurer's financial condition, and to see what protections they offer if the company were to become unable to pay the money you've been promised. That information could give you the reassurance you need to keep your money in the annuity.

Q: I recently took out my pension in one lump sum and would like to reinvest it. After taxes, it only came to $61,000. I'm 48 years old and recently left my job (not the employer of my pension), due to stress. I am planning to find a better career and would like to keep about $10,000 in my high-performance money-market checking account for emergencies. It was suggested that I put the rest of the monies in a Roth IRA. Can I put the whole amount in the Roth IRA at once, or can you suggest a better option for me? I know it was a mistake taking out my pension, but I had no other choice. Your input would be greatly appreciated.

A: Since you apparently plan to reinvest the money rather than spend it, I do not know why you withdrew it in the first place, instead of rolling it over directly into an IRA. A rollover could have saved you all the taxes you're incurring. And, if you insist on keeping $10,000, you will also owe a 10 percent premature-distribution penalty in addition to the taxes! But all is not lost. If you took out the money less than 60 days ago, it is possible to rectify the situation and either avoid the tax bill or get a refund when you file your tax return in April. But you must complete the rollover within the 60-day window. With regard to your question about whether to roll these funds over to a Roth IRA or a traditional IRA, it depends on your income (your modified adjusted gross income must be less than $100,000 to rollover to a Roth), your income tax bracket (since you must pay taxes if you roll this into a Roth IRA, a higher tax bracket would favor a rollover into a traditional IRA), what you believe your tax bracket will be when you withdraw these funds in retirement, and other considerations. And you left one job (due to stress) without having another lined up (major stress). Contact a financial adviser for help.

Q: I own disability insurance. Why did the cost triple when I turned 65?

A: The cost of disability-income insurance can jump at age 65 for two main reasons: Insurers often assume that policyholders will retire and cancel their policies by age 65; if you don't, you become more likely to file a claim. Premiums are often guaranteed not to increase until age 65 -- attainment of that age gives insurers their first opportunity to raise rates. If you are still working after age 65, it may not be worth keeping the coverage any longer.