No. 5?: Move your VA assets into the fixed-rate option. We're making 3% guaranteed, and most of the fees went away. (They still charge the income-protection fee even though it is now of no benefit). Also, my 89 yo mother has a VA within her IRA--thanks to her commission-based "advisor"--which I believe is set to annuitize at age 90. Is it possible to cash out while keeping those funds in the IRA?
Andrew -- good call on going with the guaranteed option with the investments. They do tend to have lower fees than the sub-account options without cashing out of the annuity entirely. If your mother has owned the annuity for long enough, the surrender charges may have disappeared. It all depends on what's written in the contract. Stange to put it in the IRA, especially since she's subject to annual required distributions...
Great info!!!! I’m 57 1/2 and want to roll over my annuity to a place where I can control it’s investment allocations without crazy fees/ commissions. I’ve had it 25 years so no surrender charges. It’s a Non Qualified account. Can I still get out without paying fees? I don’t need the money I want to put it into growth funds. Can I do this without paying capital gains? Thanks so much!!
Thank you so much for your wonderful comments! If you haven't reached age 59-1/2, you may want to wait for a couple of years! I believe there may be a 10% penalty on withdrawals until then. Of course, only your gains will be taxable since your payments weren't tax-deductible in the first place. Unfortunately, they're taxable as ordinary income, not capital gains. Please be sure and consult with your CPA -- the non-qualified annuities can be tricky. Please be cautious and get the help of a CPA! I don't want you to have to pay any 10% penalties. If you can't wait 2 years, you may want to consider a 1035 exchange to a better, lower-cost annuity.
@@PranaWealth ok thank you.... well my “broker” knows of my disappointment with charges/fees/ ect and he did recommend instead I roll the annuity into a “FLEXGUARD variable annuity” 1,3 or 6 year term “No fees/No commissions/No loads/ No loopholes “ 🧐😳🥺 I’m skeptical. 10 or 20% buffer protection/growth based on S & P 500. He said he “sells a lot of these PRODUCTS “ 😳🟥 red flag for me.... I asked if I’m not charged for anything how to you benefit/ get paid? “Prudential pays me!” I’m a but Leary.... any thoughts would be highly appreciated! Thanks so Much!!! 😇😀
Hey there, Ms. Diane! You're right to be skeptical. After doing a quick search, it seems like the FLEXGUARD is a new Prudential product they offer in both commission and fee-based flavors. I can't find any detailed information about the actual fees, however. In the past, I know that the Fidelity Personal Retirement Annuity and the Schwab Retirement Income Variable Annuity have been good options without ridiculous fees.
@@PranaWealth Yes I’m getting a not great feeling. He said in the FLEXGUARD annuity there is 1 that charges and 1 that does not. I’ll sent more info/ details tonight after work. Could I rollover this Non-qualified annuity to fidelity annuity with something more reasonable? For instance, I’m in bonds rt now. 🥺 (bad decision hindsight) but in order for me to move funds back into stocks I will I cure a 4% charge!!!! 😡😤😩 I’m done! Ridiculous!
Hi! I'm 56 and inherited a Variable Rate Annuity which has been annuitized and pays until 2028. I wanted to cash out but Fidelity says I can't. They also told me I can't designate a Beneficiary! I'm concerned the Stock Market is about to crash and then my annuity will disappear! Is there any way to get out of it and control the rest of the money myself? So confusing!
Hey there, Holly. Since your annuity has already been annuitized, you should be fine as long as the insurance company doesn't go under! I share your concerns about the stock market, but your current annuity shouldn't be tied to the performance of the stock market at this point. This stuff is really confusing! But this is one thing that you can relax about!
I got the good old Northwestern Mutual GOTCHA back in 2008. like $25,000.. Its actually up to 50k now but geez... i sure would have like to have had that money to invest back then.
Can you transfer it to a brokerage account? assuming it's non qualified?
Thanks for the info man!
Anytime! Thanks for watching!
No. 5?: Move your VA assets into the fixed-rate option. We're making 3% guaranteed, and most of the fees went away. (They still charge the income-protection fee even though it is now of no benefit).
Also, my 89 yo mother has a VA within her IRA--thanks to her commission-based "advisor"--which I believe is set to annuitize at age 90. Is it possible to cash out while keeping those funds in the IRA?
Andrew -- good call on going with the guaranteed option with the investments. They do tend to have lower fees than the sub-account options without cashing out of the annuity entirely. If your mother has owned the annuity for long enough, the surrender charges may have disappeared. It all depends on what's written in the contract. Stange to put it in the IRA, especially since she's subject to annual required distributions...
Great info!!!! I’m 57 1/2 and want to roll over my annuity to a place where I can control it’s investment allocations without crazy fees/ commissions. I’ve had it 25 years so no surrender charges. It’s a Non Qualified account. Can I still get out without paying fees? I don’t need the money I want to put it into growth funds. Can I do this without paying capital gains? Thanks so much!!
Thank you so much for your wonderful comments! If you haven't reached age 59-1/2, you may want to wait for a couple of years! I believe there may be a 10% penalty on withdrawals until then. Of course, only your gains will be taxable since your payments weren't tax-deductible in the first place. Unfortunately, they're taxable as ordinary income, not capital gains. Please be sure and consult with your CPA -- the non-qualified annuities can be tricky.
Please be cautious and get the help of a CPA! I don't want you to have to pay any 10% penalties. If you can't wait 2 years, you may want to consider a 1035 exchange to a better, lower-cost annuity.
@@PranaWealth ok thank you.... well my “broker” knows of my disappointment with charges/fees/ ect and he did recommend instead I roll the annuity into a “FLEXGUARD variable annuity” 1,3 or 6 year term “No fees/No commissions/No loads/ No loopholes “ 🧐😳🥺 I’m skeptical. 10 or 20% buffer protection/growth based on S & P 500. He said he “sells a lot of these PRODUCTS “ 😳🟥 red flag for me.... I asked if I’m not charged for anything how to you benefit/ get paid? “Prudential pays me!” I’m a but Leary.... any thoughts would be highly appreciated! Thanks so
Much!!! 😇😀
Hey there, Ms. Diane! You're right to be skeptical. After doing a quick search, it seems like the FLEXGUARD is a new Prudential product they offer in both commission and fee-based flavors. I can't find any detailed information about the actual fees, however. In the past, I know that the Fidelity Personal Retirement Annuity and the Schwab Retirement Income Variable Annuity have been good options without ridiculous fees.
@@PranaWealth never heard of a 1035? 🧐
@@PranaWealth Yes I’m getting a not great feeling. He said in the FLEXGUARD annuity there is 1 that charges and 1 that does not. I’ll sent more info/ details tonight after work. Could I rollover this Non-qualified annuity to fidelity annuity with something more reasonable? For instance, I’m in bonds rt now. 🥺 (bad decision hindsight) but in order for me to move funds back into stocks I will I cure a 4% charge!!!! 😡😤😩 I’m done! Ridiculous!
Hi! I'm 56 and inherited a Variable Rate Annuity which has been annuitized and pays until 2028. I wanted to cash out but Fidelity says I can't. They also told me I can't designate a Beneficiary! I'm concerned the Stock Market is about to crash and then my annuity will disappear! Is there any way to get out of it and control the rest of the money myself? So confusing!
Hey there, Holly. Since your annuity has already been annuitized, you should be fine as long as the insurance company doesn't go under! I share your concerns about the stock market, but your current annuity shouldn't be tied to the performance of the stock market at this point.
This stuff is really confusing! But this is one thing that you can relax about!
I got the good old Northwestern Mutual GOTCHA back in 2008. like $25,000.. Its actually up to 50k now but geez... i sure would have like to have had that money to invest back then.
Nobody does all of this perfectly! Sounds like you're still doing the things that you need to do in order to grow your wealth.
4 Ways To Get Out of a Variable Annuity
Don't get into one.
That's the easy way, David!