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...Annuities are big money makers for the insurance companies that sell them. Most have large management fees that you wouldn't have to pay with other investment vehicles...

If this 'overseas' money falls within the realm of a satisfactory tax differed instruments then I agree with you.

Occasionally annuities are the way to go. Especially if the money is not tax sheltered. An annuity is structured in such a way that it may be considered a semi-tax shelter instrument. That said, I would not put more than 40% of my funds into an annuity regardless of the money source. The annuity should be backed by a strong company with the highest rating possible. There are several rating companies including S&P. You do not want to have had an annuity from one of the several insurance companies selling annuities that went ‘belly up’.

FWIW, if I were to retire today I would convert my 401k into a Traditional IRA with 1/4 Oakmark Equity & Income [OAKBX], 1/4 CGM Focus Equity & Income [CGMFX], 1/4 into either Vanguard LifeStrategy Conservative Growth [VSCGX] or Vanguard LifeStrategy Moderate Growth [VSMGX], 1/8 into Vanguard Global [VHGEX], and the remaining 1/8 into T. Rowe Price International Bond [RPIBX].

A less complicated option might be to allocate nearly 100% into the Vanguard LifeStrategy Moderate Growth [VSMGX] fund.

Disclaimer, I reserve the right to change my mind in order to be less stupid.

Good luck,

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