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I have a realitivly large sum of money invested in annuities. This money is for my sons and I desire it to augment their retirement income. My sons are 38 and 41 years old, I'm 68. Because of the tax consequence it would probably be uuwise to "cash in" these investments and invest elsewhere. I'm thinking of moving these investments to the Vanguard index 500 variable annuity so that the money will be in the stock market. Does this seem reasonable or are there better ways to direct my annuity investments. Really would appreciate any help.
Thanks much;
skipkit
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Greetings, Skipkit, and welcome.

<<I have a realitivly large sum of money invested in annuities. This money is for my sons and I desire it to augment their retirement income. My sons are 38 and 41 years old, I'm 68. Because of the tax consequence it would probably be uuwise to "cash in" these investments and invest elsewhere. I'm thinking of moving these investments to the Vanguard index 500 variable annuity so that the money will be in the stock market. Does this seem reasonable or are there better ways to direct my annuity investments.>>

Annuities may not be invested directly in stocks. The best you can get will be some type of stock fund arrangement. Accordingly, if you don't want to take the tax hit by cashing them in, all you can do is to arrange for a Section 1035 transfer of the existing annuities to new ones that contain stock fund options more appealing to you. If the Vanguard Index 500 variable annuity compares better to the existing annuities in terms of return and expenses, then it's certainly a means of obtaining market exposure.

Regards…..Pixy
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