Skip to main content
No. of Recommendations: 0
My parents have 200 K invested through a firm called equivest. With talk of the dollar falling... how vulnerable is their money?

My original 403(b) was through Equi-Vest. Boy, was I a fool! With a 1.05% M&E fee plus 1.50% investment advisory fees for what basically was a domestic large cap investment, I was being taken to the cleaners! (And, yes, the person who sold me that bill of sales was someone that a coworker had recommended! Even so, the 2.55%/yr haircut didn't do those investments any good.)

A fee-only planner is probably a good suggestion.

While I became knowledgeable about investing and ended up transferring my 403(b) to TIAA-CREF (one of the other 403(b) providers on my employer's "approved" list, meaning they cut checks to them), I also developed an investment plan to minimize "stupid mistakes" (buying high and selling low, or falling prey to recentcy). But without a plan I could easily have ended up far worse.

Are your parents open to following the advice of a fee-only planner? Are they able to transfer funds to a "rollover IRA"? Or are there alternatives through which they can invest without paying exhorbinant annual expenses?

There really is a lot of information lacking from your original post:

1. How the money is invested. Equi-vest has stock-based, bond-based, even something similar to a GIC available to most of their contracts. I no longer have their booklets so I don't know all the options available.

2. The account type this is in: a non-qualified variable annuity, qualified (inside a 401(k), 403(b), Traditional IRA, or the like),

3. If it is in a qualified account, whether or not a triggering event has occurred (e.g., separation from service, which would allow a rollover),

4. How informed your parents are on investing, how tolerant they are of portfolio declines, how likely they are to stick to an investment strategy,

5. Other retirement assets (traditional pension plans? Roth IRAs? taxable investments? full life or other insurance products that are sold as investments?)

6. timetables? How long until retirement? Life expectancy?

You probably don't want to put real numbers, especially real dollar amounts, on a public board.
Print the post  


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.
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.