Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I have recently taken responsibility for my mother's investments. She is 66 and retired. Among her investments is a variable annuity with VALIC worth about $25,000. It is invested in an index fund within the annuity subaccount. No withdrawals have been made to date.

From what I have read here on the fool site, annuities are way too expensive to be worth it to invest in the first place. However, given that the annuity already exists, is it worth it to switch the investment to something else? She has an IRA and recently I switched it to an online brokerage acct and invested in individual stocks. I would love to transfer the money from the annuity into the IRA. I know this is possible without tax consequences, but what sort of charges/fees will she be socked with by VALIC? From VALIC's literature I can't figure it out. I suppose I need to call them. I feel like the money is being held hostage.

Thanks for any help anyone can give,

Aaron
Print the post Back To Top
No. of Recommendations: 0
<< I feel like the money is being held hostage.>>

A good way to describe an annuity. You'll have to call the company. It's amazing how difficult it is to get this information. My pension annuity is subject to rules of my employer AND the custodian. Bottom line: I can only rollover 30% of the value of the annuity.
Good luck.
Print the post Back To Top
No. of Recommendations: 0
DoktorDi -

Sorry you feel that way!

I work with annuities as both an accumulation tool and as a distribution tool - they offer some excellent features that can't be duplicated. Yes, there is a cost involved, but it shouldn't be too high!

Regarding the difficulty in obtaining info... that's really unfortunate. When clients call me they get fast & accurate answers to their questions.

Best wishes, PP
Print the post Back To Top
No. of Recommendations: 0
PP

I REALLY don't like annuities, but I always want to learn and I'll give you a chance. What are some of the "excellent features that can't be duplicated" and what should the costs be.

Also, since no one knows what the economy or the markets will do long term, I always look for flexibility. Can I get this with annuities?

Regards,
Paul
Print the post Back To Top
Advertisement