No. of Recommendations: 0
I didn't know where to ask this but I figured this board would know the most about variable annuities.

My sister's husband died last year and his insurance left her $125,000. She took the guidance of a local banker and bought a variable annuity from him for $50,000. She does not work and has a 6 year old son. She has no retirement vehicles She recently went back to college to finish her bachelor's degree and is living off the insurance.

I'm thinking a Roth IRA would have better served her but she does have a big chunk of money to deal with. I looked at the annuity (New York Life) 50% invested in a fixed account earning 3%, 45% in a junk bond fund and 5% in an international stock fund. Yikes right away I hated it but she is worried about loosing money. I've already made recommendations on rebalancing but it's her money.

This fixed account which I don't remember the exact name only allows 20% to be transferred to investment funds per year! AND the total fund management fees average around 2.1% each making it expensive. So was this the best choice considering her circumstances?

snafflekid
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement