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I have recently chosen to start investing in a 457 plan annuity through PEBSCO (part of Nationwide Ins. Co.), because my school deals with only one company in the 403b plan. This company deals in loaded mutual funds only. Since the mutual fund didn't seem like a good idea, I choose the 457 plan with PEBSCO. After doing a lot of reading about annuities in general, I'm wondering if I made the right choice. Since I don't have a lot of money in this plan, maybe I should look for other opportunites if my research shows a bad report? I would like to get others who are knowledgable about annuities to comment on the characteristics my plan.

1. investments are in "sub-accounts" similar to but not exactly like the mutual funds available to the public. Standard for annuities?

2. my fund cannot be rolled into an IRA if I leave my job. Is this standard?

3. PEBSCO buys shares from mutual fund co. then converts to "units" and sells to me. Standard? What is the point in converting to units?

4. fees range from .7 to .45 to .3 basis points depending on sub-account. Service center reps say this is only fee I pay, but web page talks about fees associated with underlying "sub-accounts". I think TIAA-CREF beats these numbers, but what about the industry in general?

Thanks for the input; I'm off to do some more research into the pros and cons of PEBSCO's 457 plan.
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