[Chat] [Discussion] IRA

[Stephen J Gewirtz]

Judy,

The big problem is that you will probably be charged surrender fees for 
rolling it over.  It still may pay to roll it over into something better.

There are annuities without any load (yours has what is called a back 
load).  I have seen them advertised by T Rowe Price.  Or, since you have 
an IRA, if you do roll it over, you might do well to roll it into a good 
money market account.  Unfortunately, interest rates are really low now, 
and 3% is not bad.

Unfortunately, there are lots of outfits that sell terrible financial 
products, and yours appears to come from one of them.

Incidentally, according to what I have read,  there are plenty of 
studies that show that no load mutual funds, etc. perform just as well 
as those that have loads.

If you do find something in which to roll over your IRA, I'll be glad to 
go over the prospectus with you.

Also, annuities have the advantage of deferring taxes on the income they 
earn, usually at a fee.  But an IRA also provides that same tax 
sheltering, so an annuity inside an IRA is overkill. BTW, years ago, I 
made the same mistake of having an annuity inside an IRA, so anyone who 
has not put time into learning about financial products can make that 
mistake.

Steve

On 8/21/12 1:08 PM, judy wrote:
> This may be asking for a lot. Does any one know of any type of savings 
> products,CD or otherwise, with a flexible plan that will allow monthly 
> withdrawals without any penalty or surrender charges?
> At present I have an annuity with 3% interest. I am making monthly 
> withdrawals. Just found out that I am being charged surrender fees 
> which equal the amount of interest I would earn.
>
> Thanks Judy
>
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