Author Topic: WTH - IRA Annuity?  (Read 1035 times)

Grosgrain

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WTH - IRA Annuity?
« on: April 20, 2016, 02:43:21 PM »
My fiancee was previously employed by a small family business that set him up with a SEP and a Roth IRA through Nationwide.  He switched employers last year to a larger company that has a conventional 401(k).  He is 34.

In an effort to consolidate our financial lives, I have been reviewing his accounts and statements.  Apparently, both his SEP and Roth IRAs are in annuities.  From what I know, annuities are generally a rip-off with high fees.  I want to get both accounts rolled over to Vanguard and invested in low-cost funds, but I am unsure if there is anything I need to be concerned about with the annuities.  Any advice/info from others who have dealt with this?

MDM

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Re: WTH - IRA Annuity?
« Reply #1 on: April 20, 2016, 04:08:46 PM »
...I am unsure if there is anything I need to be concerned about with the annuities.
Not necessarily - but probably.

Unfortunately, "bad" annuities far outnumber "good" annuities.

Need to know exactly what type of annuity and the legalities (e.g., surrender fee schedule, interest crediting formula, etc.) defining it.

See https://www.bogleheads.org/wiki/Category:Annuities for some general info, but it really depends on what exactly he has.