Transferring annuity proceeds to IRA

[LostDollar]

The issue is not Fees.

The issue here is Income.

$319k in mutual funds will produce $15k of income per year.... max.

So your advisor is recommending a $10k per year REDUCTION in your retirement income.

Assuming the $25k is guaranteed for life, regardless of account performance....

Then this recommendation is likely not in your best interest.

Ask your advisor to show how this creates a higher income for you.

Ask your advisor how this creates a safer income for you.

Answer: it doesnt.

And this is coupled with the fact that the annuity only represents 10% of op's retirement money.

I don't know if my objection here is justified or not, but I'm not liking the concept of the advisor creating OP's thought conflicts on fees for just 10% of his money. It seems like there is some kind of problem with that focus.

 

[LostDollar]

The issue is not Fees.

The issue here is Income.

$319k in mutual funds will produce $15k of income per year.... max.

So your advisor is recommending a $10k per year REDUCTION in your retirement income.

Assuming the $25k is guaranteed for life, regardless of account performance....

Then this recommendation is likely not in your best interest.

Ask your advisor to show how this creates a higher income for you.

Ask your advisor how this creates a safer income for you.

Answer: it doesnt.

One other thing here:

IMO, OP dumped the idea of lifetime income from the annuity into his post in such an off-hand manner, that I am not sure whether or not the lifetime income is important to him or if he just wants to see current real cash income in his accounts.

also, I think Allen's comments in relation to fees were interesting because they raise the idea that there may be a distinction OP needs to make between fees charged by carriers or fund administrators and fees charged by the advisor himself.

 

[annon123]

I do not trust a consumer to post a meticulously detailed post.

The consumer may be well educated, reasonably financially literate, not even remotely mildly cognitively impaired, and wants a second opinion about what to do and so is asking. Perhaps, for example, in their working years they were an executive at a fortune 500 company but don't feel they have the depth of knowledge in this area and don't feel like researching it in detail if they can get a knowledge opinion here.

 

[DHK]

The consumer may be well educated, reasonably financially literate, not even remotely mildly cognitively impaired, and wants a second opinion about what to do and so is asking. Perhaps, for example, in their working years they were an executive at a fortune 500 company but don't feel they have the depth of knowledge in this area and don't feel like researching it in detail if they can get a knowledge opinion here.

Agreed. Notice the hair-splitting going on in previous posts.

Is the source of funds in an IRS qualified account or not? The OP didn't specify, but we can (reasonably assume - and I hate that word) that we're talking about an IRA rollover annuity being considered to be moved from the annuity to an IRA with mutual funds or ETF or whatever.

Again, the OP didn't specify, but it's easy to draw a proper conclusion based on how the transaction appears to be recommended and then ask good questions from there.

I don't expect consumers to post as though they're filling out a fact-find form. Even when we DO send them a fact-find form, we expect them to do their best but no one does it perfectly.

 

[LostDollar]

Even when we DO send them a fact-find form, we expect them to do their best but no one does it perfectly.

The same can be said of experienced insurance agents completing technical insurance documents.

In my ongoing saga to get a financial advisor/insurance agent and obtain some insurance products, I have quite recently had an agent of many years experience spend around an hour, round trip to me from his office, to obtain my signature on some corrected documents.

We originally completed them together in his office. The insurance carrier would not accept the form as it was originally done.

 

[DHK]

Unfortunately, I'll have to say that the ability to complete forms is a completely separate issue than understanding the facets around giving advice.

Insurance companies can change forms and requirements as often as they deem necessary.

That has almost nothing to do with giving proper advice.