I am 71 years old and recently retired. I have money in a 401K that a financial adviser suggests putting in the Athene Balanced Choice Annuity Elevate (fixed index annuity which uses the Merrill Lynch RPM Index). He feels this is better to the avoid the volatility and to leave a legacy. Is this a product you are familiar with? Do you recommend retired people put all of their money in one product or keep some in the market? Thank you for your advice.

Terry Says:

OMG — NO!!  Sorry I didn’t get to this question for a few days –and hope I caught you in time!  This is just the kind of abuse the new Fiduciary Rules are designed to protect against.   There is absolutely no reason to buy this kind of annuity.  The only legacy it will let you leave is in money this “advisor” earns as a commission.  HE gets the legacy!!

You can roll over your 40l(k) into an IRA at Fidelity or Vanguard (if you don’t like the investment choices in your current plan, and assuming you have retired from the company).  They will advise on investing your account –= for no fee!  (And if you want to put a small portion into an immediate annuity (NOT the kind described in your question) — a check a month for life — they will explain.  Either Fidelity or Vanguard will save you a fortune in fees and costs and all kinds of BS that you are getting from this “financial advisor.”  Run, don’t walk, away from this person!

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