- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
What to do with an annuity
Posted on 10/4/23 at 10:21 pm
Posted on 10/4/23 at 10:21 pm
I am 38. Work in healthcare. Own a few businesses, make a nice income and I max a 401k for myself and my wife every year.
I have about 160k in a variable annuity that an advisor talked me into when I was younger and didn't know any better (I know, I regret it). This money was previously from a SOLO401k I had from a business that I sold, and was no longer eligible to fund the SOLO401k. So this money has never been taxed.
I am 4 years into it, and it can be surrendered penalty free after 7 years, but I have checked the surrender value and basically when surrendering it would be worth about what I put into it initially, maybe about 4-5 grand more depending on the day. I don't mind the surrender fee, but I would like to move it into something I can simply, on my own, without an advisor and just roll with a couple index/mutual funds. Mostly, because I don't understand what the hell the product even is, and went into it blindly trusting. Hard lesson, but no real harm done.
What is the vehicle to move this into, and how would I go about doing it? Really appreciate the advice. I have since gotten rid of the advisor because I was gouged on another product by him too.
I have about 160k in a variable annuity that an advisor talked me into when I was younger and didn't know any better (I know, I regret it). This money was previously from a SOLO401k I had from a business that I sold, and was no longer eligible to fund the SOLO401k. So this money has never been taxed.
I am 4 years into it, and it can be surrendered penalty free after 7 years, but I have checked the surrender value and basically when surrendering it would be worth about what I put into it initially, maybe about 4-5 grand more depending on the day. I don't mind the surrender fee, but I would like to move it into something I can simply, on my own, without an advisor and just roll with a couple index/mutual funds. Mostly, because I don't understand what the hell the product even is, and went into it blindly trusting. Hard lesson, but no real harm done.
What is the vehicle to move this into, and how would I go about doing it? Really appreciate the advice. I have since gotten rid of the advisor because I was gouged on another product by him too.
This post was edited on 10/4/23 at 10:27 pm
6
Posted on 10/4/23 at 10:50 pm to Saint5446
Posted on 10/5/23 at 2:49 am to Saint5446
I'm of the mind, "What's done is done" and start thinking about just rolling with the annuity.
What is the downside of just letting it pay out? Taxes?
What is the downside of just letting it pay out? Taxes?
Posted on 10/5/23 at 5:46 am to Saint5446
Most annuities allow you to take 10% out per year penalty free. Do that, take $16,000 out for 3 years until your surrender charges go away, then you can move the rest.
However, having an annuity along with various other products in your portfolio can be good. It’s a tax deferred product. First, I would get a general knowledge of the internal costs of the annuity, along with the sub account management fees. It’s possible that they are somewhat reasonable.
What company is the annuity with and what sub accounts are you invested in?
However, having an annuity along with various other products in your portfolio can be good. It’s a tax deferred product. First, I would get a general knowledge of the internal costs of the annuity, along with the sub account management fees. It’s possible that they are somewhat reasonable.
What company is the annuity with and what sub accounts are you invested in?
Posted on 10/5/23 at 6:38 am to Saint5446
You’d move it into a regular IRA but eating the penalty is probably a bad idea. You can probably choose from a variety of mutual funds within the annuity itself, including index funds. Just do that until the end of the 7 years the surrender it via a direct transfer.
Posted on 10/5/23 at 6:44 am to Skippy1013
It's with Jackson. That's what I was asking, if this would be moved to an IRA with the thought being to put it in similar funds and maybe a few individual stocks with a small % of it. Really, I still just don't understand the annuity and all of the riders like "LifeGuard Freedom Flex 7% Income Stream Value Quarterly" that come with it.
The downside to just letting it pay out is the tax burden. I was mistaken on the amount, it was 142k originally, current value is 154k, surrender value 146k.
The funds allocation is below:
JNL/JPMorgan MidCap Growth 101 10% 190.0686 84.230657 10.42% $16,009.60
JNL/T. Rowe Price Mid-Cap Growth 112 76.3288 151.121655 7.51% $11,534.93
JNL Multi-Manager Small Cap Growth 116 5% 170.3291 66.212731 7.34% $11,277.95
JNL/Goldman Sachs Managed Aggressive Growth 119 337.361 34.526932 7.58% $11,648.04
JNL/Mellon S&P 400® MidCap Index 124 10% 387.654 44.463550 11.22% $17,236.47
JNL/Mellon Small Cap Index 128 5% 36.9177 35.871764 0.86% $1,324.30
JNL/Mellon DowSM Index 145 15% 154.6261 29.527406 2.97% $4,565.71
JNL/Mellon Consumer Discretionary Sector 185 10% 237.2043 49.342693 7.62% $11,704.30
JNL/Mellon Information Technology Sector 187 5% 135.3446 42.959909 3.78% $5,814.39
JNL/Mellon Healthcare Sector 188 5% 123.5516 47.179853 3.79% $5,829.15
JNL/Mellon Nasdaq® 100 Index 222 15% 356.37 66.702679 15.47% $23,770.83
JNL/American Funds® New World 344 10% 770.2501 14.584667 7.31% $11,233.84
JNL/Mellon Utilities Sector 635 646.1648 16.059575 6.75% $10,377.13
JNL/American Funds® Global Growth 638 10% 551.1402 20.606776 7.39% $11,357.22
The downside to just letting it pay out is the tax burden. I was mistaken on the amount, it was 142k originally, current value is 154k, surrender value 146k.
The funds allocation is below:
JNL/JPMorgan MidCap Growth 101 10% 190.0686 84.230657 10.42% $16,009.60
JNL/T. Rowe Price Mid-Cap Growth 112 76.3288 151.121655 7.51% $11,534.93
JNL Multi-Manager Small Cap Growth 116 5% 170.3291 66.212731 7.34% $11,277.95
JNL/Goldman Sachs Managed Aggressive Growth 119 337.361 34.526932 7.58% $11,648.04
JNL/Mellon S&P 400® MidCap Index 124 10% 387.654 44.463550 11.22% $17,236.47
JNL/Mellon Small Cap Index 128 5% 36.9177 35.871764 0.86% $1,324.30
JNL/Mellon DowSM Index 145 15% 154.6261 29.527406 2.97% $4,565.71
JNL/Mellon Consumer Discretionary Sector 185 10% 237.2043 49.342693 7.62% $11,704.30
JNL/Mellon Information Technology Sector 187 5% 135.3446 42.959909 3.78% $5,814.39
JNL/Mellon Healthcare Sector 188 5% 123.5516 47.179853 3.79% $5,829.15
JNL/Mellon Nasdaq® 100 Index 222 15% 356.37 66.702679 15.47% $23,770.83
JNL/American Funds® New World 344 10% 770.2501 14.584667 7.31% $11,233.84
JNL/Mellon Utilities Sector 635 646.1648 16.059575 6.75% $10,377.13
JNL/American Funds® Global Growth 638 10% 551.1402 20.606776 7.39% $11,357.22
This post was edited on 10/5/23 at 6:46 am
Posted on 10/5/23 at 7:02 am to Saint5446
Roll 10% out each year into an IRA until it is free from surrender. Then roll the remainder out into the IRA.
Posted on 10/5/23 at 7:24 am to Saint5446
It has an income rider on it. You can call the company and they’ll explain how it works, or you can read up on it in your prospectus.
The prospectus can also be found online through Jackson.com.
The prospectus can also be found online through Jackson.com.
Posted on 10/5/23 at 10:49 am to Saint5446
quote:You will eventually pay takes in an IRA as well, so not sure of the concern over taxes unless you are trying to control timing better. Is it worth a penalty to move it now? If you do not understand something you signed, talk to your advisor and have it explained before taking a penalty just because you do not understand something in the annuity.
It's with Jackson. That's what I was asking, if this would be moved to an IRA with the thought being to put it in similar funds and maybe a few individual stocks with a small % of it. Really, I still just don't understand the annuity and all of the riders like "LifeGuard Freedom Flex 7% Income Stream Value Quarterly" that come with it.
The downside to just letting it pay out is the tax burden. I was mistaken on the amount, it was 142k originally, current value is 154k, surrender value 146k.
The funds allocation is below:
JNL/JPMorgan MidCap Growth 101 10% 190.0686 84.230657 10.42% $16,009.60
JNL/T. Rowe Price Mid-Cap Growth 112 76.3288 151.121655 7.51% $11,534.93
JNL Multi-Manager Small Cap Growth 116 5% 170.3291 66.212731 7.34% $11,277.95
JNL/Goldman Sachs Managed Aggressive Growth 119 337.361 34.526932 7.58% $11,648.04
JNL/Mellon S&P 400® MidCap Index 124 10% 387.654 44.463550 11.22% $17,236.47
JNL/Mellon Small Cap Index 128 5% 36.9177 35.871764 0.86% $1,324.30
JNL/Mellon DowSM Index 145 15% 154.6261 29.527406 2.97% $4,565.71
JNL/Mellon Consumer Discretionary Sector 185 10% 237.2043 49.342693 7.62% $11,704.30
JNL/Mellon Information Technology Sector 187 5% 135.3446 42.959909 3.78% $5,814.39
JNL/Mellon Healthcare Sector 188 5% 123.5516 47.179853 3.79% $5,829.15
JNL/Mellon Nasdaq® 100 Index 222 15% 356.37 66.702679 15.47% $23,770.83
JNL/American Funds® New World 344 10% 770.2501 14.584667 7.31% $11,233.84
JNL/Mellon Utilities Sector 635 646.1648 16.059575 6.75% $10,377.13
JNL/American Funds® Global Growth 638 10% 551.1402 20.606776 7.39% $11,357.22
Posted on 10/5/23 at 12:42 pm to Saint5446
If after 7 years there is no withdrawal charge and that is only 3 years away, I would not incur nay changes. If you can move some out now without a charge, do that, via a rollover to another type of IRA product.
It could be worse. If this was not in an IRA, you would deal with tax on the earnings (although it sounds like the earnings aren't much).
It could be worse. If this was not in an IRA, you would deal with tax on the earnings (although it sounds like the earnings aren't much).
Posted on 10/5/23 at 12:55 pm to LSUFanHouston
At one point there were quite a bit of earnings but as with a lot of things it corrected with the market. Thanks for the advice and thoughts in here, appreciated. Will likely just stay put and keep funding the 401k.
Posted on 10/5/23 at 1:04 pm to Saint5446
Does it have a LBR? If so, that thing is costing you north of 3.5% in annual fees alone.
Posted on 10/5/23 at 1:26 pm to Saint5446
(no message)
This post was edited on 10/5/23 at 10:19 pm
Posted on 10/5/23 at 3:05 pm to TDTOM
What is an LBR?
Posted on 10/7/23 at 8:21 am to Saint5446
Looks like you you are diversified for diversity sake. Reallocate some of the funds to reduce the number of funds you are invested in and that should help reduce your fees.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News