In 2007, a relative of mine purchased an annuity for me as a gift. The annuity which I have, with Transamerica, has since expired. Being that I already have the annuity, I have 2 choices, cash it out or move it into another annuity. I obviously do not wish to cash it out as I would be smacked with a 10% Tax Penalty. So, I am going with the other choice of moving it into a Vanguard Annuity.
With regard to putting together an asset allocation for the annuity, I was not sure of which funds to choose, as I desired a very aggressive portfolio (a 100% stock allocation) These are the funds that are in the Vanguard Variable Annuity.
VVA-Balanced (0069)
VVA-Capital Growth (0603)
VVA-Conserv Allocation (0801)
VVA-Diversified Value (0145)
VVA-Equity Income (0008)
VVA-Equity Index (0068)
VVA-Growth (0010)
VVA-High Yield Bond (0146)
VVA-International (0086)
VVA-Mid-Cap Index (0143)
VVA-Moderate Allocation (0803)
VVA-Money Market (0064)
VVA-REIT Index (0147)
VVA-Short-Term Invest-Gr (0144)
VVA-Small Company Growth (0160)
VVA-Total Bond Market Idx (0067)
VVA-Ttl Stock Market Idx (0604)
Of the 17 funds in this annuity, my friend suggested that I allocate the following funds in this fashion:
30% VVA Capital Growth (0603)
15% VVA Diversified Value (0145)
8% Mid-Cap Index Portfolio (0143)
7% Small Company Growth (0160)
30% VVA International (0086)
10% REIT (0147)
He also suggested, before I invest, to ask for other opinions and so, here I am. I would appreciate any other feedback.