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 Commissionerswww.naic.orgNASD - National Association of Security Dealershttps://www.nasdr.com/secure/complaints/ComplaintCenter.aspSEC - Securities and Exchange Commissionhttp://www.sec.gov/investor/pubs/howoiea.htmThis 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
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