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URL:  http://boards.fool.com/ltlti-cant-tell-you-how-strongly-i-disagree-22629638.aspx

Subject:  Re: AXA Equitable Asset Mgt Investment Date:  6/16/2005  1:22 PM
Author:  Hawkwin Number:  46526 of 76384

<<I can't tell you how strongly I disagree with you on VA's. I have one, with American Legacy, which has underperformed by almost any measure. I blame the extra 1% fees associated with the annuity. I also have a variety of index funds, but mainly VEXMX and VGSIX which have outperformed. It appears that when you say "Index Fund" you mean an S&P emulator, whuch has underperformed of late. Check back in 20 years and we'll compare notes. I also have a bundle of American Funds>>

All VAs vary just like all mutual funds vary. Did you know that there are some excellent VAs with American Funds available? You can also pick Index funds within a VA. I don't recommend a VA unless a client meets specific criteria. I would much rather give someone a direct American Fund investment then put them in a VA but if they have never invested before in their life and they want some guarantees, a VA can do that for them.

As far as moving the funds, I would certainly do so for one significant reason - you control the investment. Even if you roll it over to a Fidelity direct account, you have the control. As long as it is through the company, they can change the funds available to you as well as change the actual company that runs the 401K. If you want to stay in the low-priced stock fund, Fidelity may allow you to do so if you do a direct rollover to them. I would call that 1800 number on the top right hand corner of your green statement.

While 6% may be dumb for you, I know plenty of people that would jump at the chance of geting a fixed 6% with upside potential.
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