Met-Life IRA annuity sucks

[GinMan]

So what about switching it all over to my ameritrade account and sticking it into some kind of "no Load" index fund for my IRA? I know I sound like a Dave Ramsey or Suze Orman episode, but I've tried talking to a UBS dude and he is S___L___OWWW, and The met-Life annuity right now is a real booger.
I just found this Investment Message Board and I need to keep investing b-4 the wife pi$$e$ it all off........
Any help would be greatly appreciated.
Right now I own stock in LUV, SIRI, L, GOOG, and BRK.B, and EBAY, so who wants to bash me for that? I AM NOT A TRADER! Just trying to spend it b-4 she can...LOL

[drfishalot]

I know nothing about met life. however, if you are thinking of doing any fund, index or other, I am not sure of the rational for getting into a fund with a load when there are so many with no loads. my .02

[GinMan]

So which "No Load" indes funds does anyone have "+" comments about?

[willydavenport]

I work as an financial consultant to companies with pension and 401(k) plans, but we also serve some individuals. Annuities are a terrible instrument for investing money; they are extremely expensive and you can typically earn a higher return investing on your own behalf. That being said, one thing I think you need to check into are the withdrawal penalties that you will have to pay when take the money out of your annuity. The amount of penalty you pay, normally depends on how long you've been in the annuity. If the penalty is not too steep, then I would definately recommend moving the money into an index fund. The money you save will surprise you.

[willydavenport]

Also, be very careful about asking opinions from financial advisors whose compensation depends on how much commission they can suck out of you. It may be worth the money to look into a fee based financial planner than can help you put together a long term plan.

[GinMan]

I agree with the fee based financial planning. But as far as this IRA, I am just going to swap them over to Ameritrade, and slap it into an IRA with them. That way I don't have to go through any type of commission base transfer.
I think the rate for withdrawal penalty is around 3%. I have a feeling that I can overcome that difference in short order by switching gears out of the Variable Annuity and into an indes fund through Ameritrade.
Thanks for the help, and any other input is greatly appreciated.

[SPECtackle]

I am a financial planner and the big question is why did you buy an annuity in the first place? They definately serve a purpose, it just may or may not match yours. I like them to avoid commissions but they do have surrender charges. You said your annuity was variable. You can trasfer to better performing annuites utilzing what is called a 1035 exchage and avoid taxes, otherwise you may have a taxable event. Your existing product may have better performing sub-accounts than you are utilizing presently. All of the options, regardless of vendor are going to perform close to each other. Live by performance, die by performance is the rule. Consistency has value in my book. This maket has been difficult lately no matter what the vehicle is so be careful about jumping from the pan into the fire.

[Sow Trout]

Buy one of the many Vanguard Funds directly from Vanguard.

[GinMan]

Can I do the 1035 exchange to get out of my Met-Life annuity, adn buy directly from Vanguard? Would Vanguard assist me in that?

[GinMan]

I am a financial planner and the big question is why did you buy an annuity in the first place? They definately serve a purpose, it just may or may not match yours. I like them to avoid commissions but they do have surrender charges. You said your annuity was variable. You can trasfer to better performing annuites utilzing what is called a 1035 exchage and avoid taxes, otherwise you may have a taxable event. Your existing product may have better performing sub-accounts than you are utilizing presently. All of the options, regardless of vendor are going to perform close to each other. Live by performance, die by performance is the rule. Consistency has value in my book. This maket has been difficult lately no matter what the vehicle is so be careful about jumping from the pan into the fire.I got the Annuity because when I changed jobs in Corpus I had a 401K that I had to roll over into an IRA when I left. It's amazing how some of these advisors will walk all over you when you are young and inexperienced. Anyway I know know I should have gone in a different direction.

[flatscat1]

I'm interested to know why you guys believe buying an index fund in the current environment is a good idea?
Look at a 5 year chart of the S&P 500 (index) and see how much money you would have made....then factor in core inflation of 3% and/or headline inflation, which includes food and energy, of over 4.5% and you will see that you would have lost money over the last 5 years by indexing.
Do you guys think we are in a bull, bear or sideways market going forward? I, and a number of institutional money managers, believe we are in a sideways market and will remain there for the next several years. Regardless of how inexpensive the load on a fund is, you may find it tough to generate any returns (especially over inflation) with a long-only broad market index in a sideways market.

[SPECtackle]

You can only do a 1035 exchange of one annuity for another although Vanguard propably does offer annuities, but I am not sure. There has been much discussion regarding buying an annuity with IRA money as the tax benefits an annuity offers are already inherent in an IRA but personally, as I said before, I like them as a way to save commission/load fess as you basically pay your fee in a time committment rather than in case. As you are young, your time committment to the iRA is alredy until you are 59 1/2 because Uncle Sam will shellac you for taxes and a 10% penalty if you access the funds before then anyway. As before, perhaps what yu need is a better performing annuity or a better selection/allocation of sub-accounts. SOME annuties have outrageous fees and are not good options but there are some good ones as well. You may want to look at Ameritas Direct as an option.

[SPECtackle]

I REALLY NEED TO LEARN TO TYPE BETTER......

You can only do a 1035 exchange of one annuity for another although Vanguard PROBABLY does offer annuities, but I am not sure. There has been much discussion regarding buying an annuity with IRA money as the tax benefits an annuity offers are already inherent in an IRA but personally, as I said before, I like them as a way to save commission/load FEES as you basically pay your fee in a time committment rather than in CASH. As you are young, your time committment to the iRA is ALREADY until you are 59 1/2 because Uncle Sam will shellac you for taxes and a 10% penalty if you access the funds before then anyway. As before, perhaps what YOU need is a better performing annuity or a better selection/allocation of sub-accounts. SOME annuties have outrageous fees and are not good options but there are some good ones as well. You may want to look at Ameritas Direct as an option