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URL:  http://boards.fool.com/cody-asks-ltlti-have-one-more-question-my-10456744.aspx

Subject:  Re: 403B Fees Date:  12/10/1998  5:12 PM
Author:  TMFPixy Number:  7173 of 75540

Cody asks:

<<I have one more question. My annuity allows me to invest in several of the Fidelity funds, one of them being the Spartan Index fund. I do have some of the money in it now and if I do not decide to cancel my contract, I plan to move all of it over shortly. Is investing in this fund through an insurance company going to give me the same rate of return than if I canceled my contract and paid the 5% penalty (which is about $250) and invested the money in the same fund directly with Fidelity? I currently pay a $30 fee per year. I have at least 25 years until retirement.>>

Perhaps. Bounce the reported returns in the annuity against the reported returns of the fund. You should be able to get the annuity numbers from your provider and the fund numbers at www.morningstar.com . They may or may not match depending on the fee agreement the annuity has with the fund and any layering of fees by the annuity itself.

My guess (and that's all it is) that with a penalty of only $250 coupled with an annual fee of $30, then you'll be money ahead over the long term by surrendering the annuity and go the direct route. But you gotta run the numbers to be sure.

Regards….Pixy

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