Thank you for your great information
Can you educate me on variable annuity ?
I took out my 401k And the manager is suggesting variable annuity
I am afraid of the fees . I have about 4 more years to work so I am not afraid of the lock in ,
so much is now about the fees so I am not sure how to proceed and would appreciate your input

Terry Says:  Well, first let me ask you a few questions — and tell you that your instincts are quite correct!   What do you mean by “I took out my 40l(k)?  Are you still working for your employer?  Did you “roll” your 40l(k) into an IRA?  What do you mean by “manager” — a salesperson at a brokerage firm or insurance firm??

If so, you are about to be victimized — and I use that word correctly — by an army of annuity salespeople who are trying desperately to get your money before the new Fiduciary Rule kicks in and they can no longer easily sell these products in retirement accounts!

You are correct that these products are full of fees and restrictions — and while touting upside gains and downside protection you get ripped off right from the start by huge commissions and ongoing fees and surrender charges if you change your mind.  DON’T DO IT!

Please answer these questions by writing back to me.  If you already rolled your account into another firm, you might want to roll it again into Fidelity or Vanguard — where you can get good advice at low costs.   But this must be handled carefully.  There is typically a one-year waiting period to “roll” an IRA — UNLESS it is a “trustee to trustee” transfer.  So you would need to open a new IRA at Fidelity or Vanguard and ask THEM to handle the transfer.