I had posted this in the Ask a Question section, and someone referred me here. I hope this is the right spot.My grandmother left me a fixed annuity about 8 years ago. She had used all the principal from it. There is still a sizable amount, and I've withdrawn from it once or twice (emergencies) and paid the extra 10% penalty for not being at least 59 1/2 (another 20 years away).Every year I get a statement from the annuity company telling me what the interest rate is for the coming year (this year 6.6%). I think I would do better to surrender the annuity, take the tax bite, and invest the difference myself. Am I right? Would I do better to take a little each year to invest, and spread out the tax pain?Any information/comments are appreciated. Thanks. If you would like to have this money invested in a Variable Annuity rather than a fixed annuity, you can do a "1035 Exchange" to another Carrier. Vanguard for example has a Variable Annuity that allows you to invest your money in many different types of funds. One of the funds I like is the 500 Index Fund. TIAA-CREF also has low expense ratio variable annuities. Here are their websites: www.vanguard.com www.tiaa-cref.orgAt the top of your screen is a "search" box. Type in this; "1035 exchange". You will get more information than you need.cf
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