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Hello again pjrn, Here's the info I talked about, even it's prolly way too late. You stated the VALIC rep said no fees you have to pay, well, the prospectus states you may be subject to SIX types of fees and charges:
1.) Account Maintenance Fee - $15 per year.
2.) Surrender Charge - which amounts to not greater than: 5% of the amount of all Purchase Payments received during the past 60 months; or 5% of the amount withdrawn. There are some exceptions, though.
3.) Premium Tax Charge - which can be charged by some cities or states up to 3.5% of payments.
4.) Separate Account Charge - which is the M&E fee and the Administration and distribution fees, which annualized, amount to .35%-.85% during Purchase Period, and .75%-1.25% during Payout Period.
5.)Fund Expenses - which include management fees, 12b-1 fees and other fees. some of which may be waived, but reinstated anytime without notice.
6.) Other Tax Charge - this could be in the form of Federal income tax, none exist at this time.

Just an example of the actual cost, VALIC sent out an enclosure with the prospectus regarding new funds replacing old ones, and their total NET expenses. The 7 funds listed ranged from a low of 1.50% to a high of 2.06%. One could be considered fortunate though, the ones replaced had expenses of 2.21%, 2.13% and 2.08% respectively. Lucky you ;-)

You also mentioned something about wanting to be aggressive in your young age and fund of funds. I have two useful resources on these issues for you to read, here:

Watch those fund-of-funds for 2 layers of fees, though.

Whatever you do read the prospectus before you put any money anywhere.


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