DEAR BRUCE: I am 57. I lost 50 percent of my 401(k) savings. My financial adviser has suggested I move the remaining amount into an annuity, which guarantees a 6 percent compounded return every year. If the market should gain more than 6 percent, then the base is reset on the anniversary day to the higher amount. They will guarantee the base amount, so even if the market plummets again, my $100,000 will be $100,000 plus 6 percent growth. This insurance will cost me an additional 1 percent in fees. I have always read to stay away from annuities, so I am hesitant to do this, but if they will guarantee my base and let me stay in the market to capture any future gains in addition to the 6 percent, wouldn't that be a good move now? The products he has suggested are variable annuities. -- A.W. Austin, Texas

DEAR A.W.: I am somewhat distressed that your 401(k) has been cut in half. It would appear that you made choices that were quite aggressive in order to have a loss that high. I am not wildly enthusiastic about variable annuities, or most annuities. They do serve a purpose, but I don't see it for you. What you have not mentioned (was it mentioned to you?) is that if you want to take money out of this product for a good many years, the penalties can be very severe. The penalties and the insurance aspects of annuities make it, at times, an undesirable investment.

DEAR BRUCE: Does it make sense to pay extra money toward our mortgage? I'm 61 and my husband is 64. We just recently built a home. We have $58,000 left on the mortgage. The monthly payment is $300 and 30 years left. Does it make sense at our age to pay extra or pay it off in 10 or 15 years? Or would we be smarter just saving that money? The house is valued over $300,000. -- R.C., via e-mail

DEAR R.C.: The one important ingredient that you failed to include is the interest rate on the mortgage. If the interest rate is somewhere in the neighborhood of 5 percent or less, my inclination would be not to pay it off early. That will make it a little more costly given that it's unlikely that your savings is earning as much as the money you would be saving. At your relatively young age, I believe that interest rates are going to creep upward, and you're current rate, if it's a good one, will look like money from home. If you are more comfortable with a home that's paid for, by all means, belly up to the bar and pay off as much as you can so by the time you are fully retired, the house will be paid for. That is more of a warm-and-fuzzy feeling solution than a solid financial one.

DEAR BRUCE: My mother-in-law died in 2003, two years after her husband. All the property was put in the five children's names. Two family members lived in the house with her. One of my husband's brothers who lived with her took care of her financial affairs. The one brother contacted us that he needed us to sign a "quick claim" form so he could take a loan on the house to pay for mom's expenses. My husband, the oldest of the brothers, wanted an accounting of her finances, and the brother handling the finances resisted. For quite a while, the two brothers fought over this "quick claim" issue. Finally, my husband signed. He felt if mom needed money just do it. He signed without an accountant. Mom died six days later and still had money left in her account. When it came to divide up the estate, one brother who lived there said he is keeping everything since we signed everything away to him. Are there any time limits on anything we can do? What course would we take if we were entitled to anything? I realize he signed a "quick claim" deed to his brother, but it was with the intention of helping mom out, which was the father's request prior to his death. -- Reader, via e-mail

DEAR READER: It would appear that this is not the tightest family in the world. In your letter, you keep referring to "quick claim." What you mean is a "quitclaim." That means that your husband gave up all of his rights to the property. That is the bottom line. Further, it's been six years since this happened. If there was going to be some action against his brother, it should have been done then. At this point, I would put it behind me and acknowledge a very bad family relationship.