Author Topic: Sorting Out Annuities and Money Market Account  (Read 1416 times)

Farmgirl

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Sorting Out Annuities and Money Market Account
« on: June 06, 2014, 06:10:46 AM »
First time poster here.  The stats:  Me = 55 yo, employed making $37K/yr.  Husband = 60 yo, self employed making ~$40K/yr.  No debt other than $158,000 left on mortgage at 4%.  We're on the fast track to paying it off in 33 payments.  $490,000 in various 401K, SEP, Simple, Annuities.  Plus, $70,000 in cash sitting in a Money Market account.  We always looked at the Money Market Account as our emergency fund, but now feel it is too fat and needs to be working for us in a better way.

Back in the mid-2000's my husband and I got into five different annuities not really knowing how they worked.  Over the years, we essentially ignored them as they were growing decently.  A salesperson from Merrill Lynch sat down with us recently and pointed out that the one annuity was at a 4% ER.  The others weren't "too bad". 

Now that we understand these things a little better, we have decided that we really don't like them much and want to do something else. The Merrill Lynch man is more than happy to help us with this.

Looking for any ideas for what to do with the annuities and what to do with the Money Market.  PS:  I desparately want to quit and do side-hustles.

 

brewer12345

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Re: Sorting Out Annuities and Money Market Account
« Reply #1 on: June 06, 2014, 07:59:03 AM »
Not enough information.  What is your total asset allocation?  What are your annual expenses?  How would those expenses change if you quit the day job?  What kind of annuities are these (variable?  With after tax/non-qualified money?)?  What is the total expense ratio on each annuity contract?

I will guess that you should be dumping the annuities, running away from Merrill Lynch and moving the annuity money to Vanguard, most likely in a tax free rollover to a VG annuity.  However, without more info it is hard to say.

Farmgirl

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Re: Sorting Out Annuities and Money Market Account
« Reply #2 on: June 06, 2014, 09:02:43 AM »
Thank you for your response.  I'll go back to the drawing board and list all of the retirement stuff we have.  It has just gotten so messy over the years.  I probably have a dozen statements.

I would love to be able to go to one place and see how we're doing.  With the annuities, I am NOT sure of the advantage of them over just having the money in an IRA or something similar.  It seems more simple to have the money in an index fund or something and get out of the annuity game all together for at least the time being.

Thank you again for looking at my post.