Hello. I'm a 58 year old early retiree with $400K + in my old 401K, which has been doing well. I have been looking at the Polaris variable annuity by Anchor National (Sun America) as a possible rollover IRA, but am concerned with the advertised expenses, especially since reading your recent series on annuities. The basic annual account expenses (mortality and expense risk and distribution expense charges) are 1.52%, slightly above average. Examples of the sub-accounts however, based on a $1,000 investment, and assuming a 5% annual return on assets, show an average annual cost of $23 or $93, depending upon whether a). you surrender the contract at the end of the stated time period, or b). you do not surrender the contract. If all of these are added then the annual total expense would be considerable, would it not?. They offer a 4% bonus to your account if you commit to a longer contract period, but it looks to me like this would be wiped out by the expenses at the end of the first year. And of course, the expenses continue and each year would theoretically be based upon a larger base. Any general advice or recommendation? I can keep my 401K in any event, but since retiring have less control of it. Thanks in advance.
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