Hello all, and a FOOLish evening to you all. My roommate came home this evening with a dazed look on her face. She came home with a nice little packet from SALOMON SMITH BARNEY (Travelers group) explaining all about the nice Erisa Section 404(c) plan (401 k from her Employer) that is a VARIABLE ANNUITY! She signed the papers, not knowing what she was doing, fortunatly, the annuity will not begin until the begining in January of 2000. After doing my reading of TMF's retirement boards, and reading Suze Orman's book "The Courage to be Rich," I realized that she had made a HUGE mistake! (or so I believe)... Should I tell her to ask her boss to let her join in a conventional IRA or Roth Ira (which I prefer), and make contributions to that plan, or go with what her boss already has signed up the group for ( the variable annuity)? The only saving factor that I could find is that they do offer a Smith Barney S&P 500 Index fund. I'd like to hear what others recommend, if she should go with the group plan, or establish her own IRA without the contributions of her employer. Any help with this would be greatly appreciated.(I told her to wait, and not do anything else 'till I heard from you guys)! I love the Motley Fool! I have now become totaly debt free, and have now established a savings account (with the money I would still be paying on the bills I owed) and going to Europe to celebrate my 30th b-day on Bastille day in Paris completly DEBT FREE!!! Thanks for all your help, and keep up the good work! Sincerely, Cat Cali.. or Interpreter CAT
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