UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: jesserivera67 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: variable annuity question Date: 1/8/2004 10:12 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
As you can see from all the posts your instincts are right on.

First, If she's just recently done this tell her to immediately find out the "Free Look" period. This is typically in most VA contracts and allows the her to examine the policy and essentially change her mind and get her money back. The period is usually ten days but some will let it go as long as it doesn't go beyond 30 days. I would do this right away.

If the period is up, the next step is where it gets more complex. She undoubtedly has signed an agreement which is what the bank will have over her head...but there are ways...

First is to politely threaten to complain to the following organizations:

NAIC - National Association of Insurance Commissioners
www.naic.org

NASD - National Association of Security Dealers
https://www.nasdr.com/secure/complaints/ComplaintCenter.asp

SEC - Securities and Exchange Commission
http://www.sec.gov/investor/pubs/howoiea.htm

This should get the bank very concerned. Banks are extremely concerned with bad press these days and she can use this to her advantage. The bank will hopefully respond with her getting her money without any surrender fees or at least negotiate the fee so that she doesn't pay the full amount (typically 7-10%).

If they still don't budge she'll have to move from the threatening to actual filing of a complaint. It's long and arduous as they will ask for her committment throughout the investigation and that will take time but there's a chance she will get something back.

If you try to do a 1035 exchange (basically a rollover for annuities) she will still get nailed with the surrender fees so I would recommend you get her money out of there if possible.

Oh yeah, Roth IRA hands down would be the winner and the rest could of gone to some index funds. I would determine her risk tolerance before recommending any investments...

best of luck.

Jesse
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Reestablishing the Middle Class
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement