UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: dozer183e Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75701  
Subject: TSA help Date: 7/27/2000 4:57 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 6
About a year ago, before I became a Fool about investing, we were visited by a friendly man encouraging my wife (a teacher) to contribute to a TSA for retirement. It sounded like a good deal at the time so we signed up.

Now I am not so sure it is a great deal. Here is what I now know which I did not know then:

-The TSA is a 403(b) retirement plan.
-This contract we signed is an annuity with a company calld CGU Life Insurance.
-There is a minimum guaranteed interest rate of 3.0%.
-There is a stiff surrender charge if we wanted to withdraw.

Here is our situation:
-Wife is 28.
-We both contribute to IRAs
-I contibute to a 401(k)

So, since we should be aggressively investing for retirement, this annuity thing bothers me. I need your help! The friendly man mentioned above is coming by Sat. to answer our questions on this TSA. I have quite a few in mind, but please offer me your advice. I think what I want is to get the money invested in Mutual Funds instead of the Annuity. My guess is the Annuity is all his company has to offer.

How should I prepare??

Dozer
Print the post Back To Top
Author: brewer12345 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23732 of 75701
Subject: Re: TSA help Date: 7/27/2000 5:08 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
You are probably stuck in the annuity unless you want to take the hit from the surrender charges. Many of these things will allow you to surrender without penalty after a few years. Find out if yours has this feature.

I would also ask about fees. The primary evil of most annuities is that they have sky high fees in return for not much.

If the fees aren't too bad and annuities are your only choice, sometimes they aren't too bad if there are other benefits (like getting to contribute to them pre-tax in a 403b). Many companies offer variable annuities that are basically mutual funds wrapped in an annuity structure. If this is available and the fees aren't too bad and the underlying fund isn't an expensive one, then it might be worth it to go for the variable annuity. You'll have to get more info though.

Print the post Back To Top
Author: BGPenhollo Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23826 of 75701
Subject: Re: TSA help Date: 8/1/2000 8:32 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Try these URLs.

http://www.403bwise.com

http://www.sec.gov/consumer/varannty.htm

http://www.fool.com//quickfindnew.asp?url=R3

http://www.fool.com/retirement/annuities/annuities03.htm

BGP



Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement