Is He Transferring Shares?

If Kevin is transferring shares, I would tell him to continue to do that. Because bonds will come back. You're going to lock in your loss and then buy a guaranteed product at 5%. But then it's like, well, how big of a loss do you have? If he's buying bonds or bond funds in the non-qualified, he's paying tax as he goes on the interest payments. So with an annuity, he defers that until in this case, three years. He could go into municipal bonds in his non-qualified account if they are good investments. It might not be the best strategy. People look at investments as a standalone instead of what they're doing