No. of Recommendations: 1
By law, an insurance company offering a variable annuity cannot directly invest in mutual funds. It invests in fund clones; the yield is never quite as good because the management expenses are higher, but the idea is the same. Thus you have "Life Strategy I"
managed by an agreement between Vanguard and the insurance company, which will more or less follow the ups and downs of Vanguard Life Strategy Growth Fund.
A 401K is a valuable means of saving for your retirement. You'd rather not have to go through an annuity, but especially if there is an employer match, you do well to take advantage of it.
If your employer is relatively small, perhaps you could persuade him you'd rather not have the insurance costs of an annuity in your 401K and maybe you'd be heard, particularly since it is a recently selected plan administrator.
Best wishes, Chris
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.