This week investment adviser Bruce Kajiwara answers readers' questions on investments and annuities. See more of his advice – and that of our other local financial experts on taxes, finances, banking and wills/estates – at "Ask the Experts" at www.sacbee.com/ask.

My wife and I have money invested with Sun Life Financial company. (What we own is a Keyport Index MultiPoint annuity.)

My question: How safe is my investment? Should I pull it out and put it into a bank that is FDIC-insured?

You own an equity index annuity offered by Sun Life Financial. According to the Web site, it offers: tax-deferred growth of interest earnings, which are linked to positive increases in the S&P 500 Index; and 100 percent guaranteed return of principal (if held to term).

The Standard & Poor's 500 Index (S&P 500) is widely regarded as the best single gauge of the U.S. equities market. The index includes leading companies in leading industries of the U.S. economy. As the index increases, so should the value of your annuity.

Independent ratings are an important indication of an insurance company's financial strength, which indicates its ability to meet obligations to its policyholders. A.M. Best, an established rating agency for insurance companies, rates Sun Life as A++, the highest rating. You are correct that your annuity is not FDIC-insured; however, that should be only one criterion for investing. Sun Life may be a very strong company, and one that provides the investment safety you seek.

Without knowing how much you invested, when you invested, your original objective for these funds and when you need access to these monies, I do not have enough information to recommend that you sell and move the proceeds to a bank.

Before you decide to sell, be sure to know all of the costs, fees and tax implications. Not only are there tax rules to consider, there may be costs or fees charged by Sun Life Financial for surrendering the annuity contract, if not held to the (full) term. Consult your tax and financial adviser for more details.

My situation is not complicated. I am 73, single, retired and have $400,000, which is currently in a bank due to pulling out of a financial investment group that I felt was not getting the most for me.

All I want is to continue my fairly modest lifestyle for the rest of my life. I don't expect to be taking world cruises or buying property. (I rent now.) I simply want some peace of mind.

In exploring options, I have had some recommendations, including a fixed annuity through North American Co., a life and health insurance policy, an individual deferred combination variable and fixed annuity through ING, and a diverse portfolio consisting of 30 percent stocks and the rest divided up among international bonds, domestic bonds and energy from an independent broker/dealer.

I'm confused as to the right way to go. I want some assurance of a regular monthly income but would also like my money to grow, if possible. Any suggestions?

Your goals and objectives are common for many retirees: some assurance of steady income but a preference for some growth and all structured so you have peace of mind. Each goal is viable.

The difficulty is that each has meanings unique to every person. Is steady income one that provides all your living expense needs, or just a portion? How much income is needed? What is a reasonable growth rate? What mix will truly give you peace of mind? Can you accept declines in your portfolio to obtain a certain amount of potential growth?

Before I make an investment recommendation, I would want to know more about you. First, I'd want to know about your experience with your previous advisers. What made you feel that they weren't getting the most for you? Was it a lack of communication? High fees? Inadequate diversification? Poor investment performance?

Next, I would run an analysis illustrating how long your $400,000 would last given your desired level of spending. That can help determine whether your primary objective should be growth, or whether preservation of a steady income stream is of greatest importance.

The investment options you described each address some of your three concerns. Possibly a combined approach would fit the bill. If you decide on a fixed annuity, be sure to research the financial strength of the underlying insurance company. Also, understand all the costs, fees, surrender charges, administrative costs, etc., of each option.

Finally, ask your adviser how he or she is compensated, and how much service you can expect in future years.

In an "Ask the Experts" Q&A with California Bankers Assn. president and CEO Rodney Brown last week, incorrect information was given about FDIC coverage of a $200,000 payable-on-death account owned by a couple with one child as beneficiary. Because there are two adults, each has $100,000 coverage per their beneficiary child, meaning the account is fully covered. But here's a new twist: The FDIC's standard per-deposit coverage of $100,000 has been temporarily raised. Under the new bailout bill approved by Congress and signed by President Bush on Friday, the FDIC will increase the $100,00 limits on deposit accounts to $250,000, through Dec. 31, 2009. For more information on FDIC coverage, go to www.fdic.gov or call 877-ASK-FDIC (877-275-3342). – Compiled by Claudia Buck