UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: xnocturnal One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75890  
Subject: Expensive annuity in 403 (b) Date: 12/2/1999 2:19 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings,

I have been lurking on this boards for couple of months and learning a lot.

At present I am struggling with the following dilemma.
My employer is using variable annuity as an investing vehicle for the 403(b) plan. They (American United Life
Insurance Company) seem to have some decent choices but the EXPENSES ARE HIGH !!!! 1.25% added on top of
the mutual fund-like subaccount expense. So some of the subaccount choices end up costing whopping 2.45% and S@P 500-like subaccount 1.53%. There is also $30 annual fee. How about 8% surrender charge?!!!. Funny that none of the company reps mentions any of that when you sign up for this thing. Another thing, there is no matching from employer.
Considering all of the above, would I be "foolish" to just stick with my Roth IRA - up 38% this year, and taxable account- up 35% this year, and not bother with this annuity thing???? Or should I chip in some small amount in to this expensive tax deferral ???
My next question - since this is "before taxes" annuity will I have to pay tax on the whole thing (contributions and earnings) at retirement. I am 44 years old, 28% tax bracket.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
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.
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