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frogmister, you asked:

<< I am a teacher who let a slithery broker set up my 403b well before I was Foolish. My wife and I have about 30,000 in--75% in Janus mutuals and 25% in a variable annuity 500 index. This fund (Fidelity VIP 500) appears to only have a .28 expense ratio, but I have been indoctrinated by MF into thinking variable annuities inherently evil. Should I leave my money where it is, or should I take the 3% surrender fee and get into a 403b(7) straight mutual fund setup? Oh wise fools, I beseech you to enlighten me. >>

Though being one who finds annuities MUCH MORE palatable than most others on these boards, I would suggest you seriously look into moving into a mutual fund position under the 403(b)(7) section. If you move out of the annuity and any retirement income from this is not for many years to come, by moving out of an annuity will remove a layer of expenses than can add up to a tidy sum over the long term. Of course, it also removes any benefits the annuity provides - which doesn't sound like a concern to you. A 3% surrender fee isn't all too bad and might recover that in a short period of time . . . DEPENDING on the particular investments involved.
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