Variable Annuity - I want out, yes or no?
My sister bought a large annuity for me right after my husband passed away without my approval but now I am stuck! She no longer manages my money either and we don't talk because she really took advantage of me. I will be 59 1/2 this year and am wondering if I should dump it?? I am in year 6 of owning it.
I am also thinking of taking legal action against her company because I never approved her to take this money and sink it for 10 years. The surrender fees are hefty, about k and total surrender without penalty is 2024.
I am asking is it worth liquidating the whole thing and taking the hit or should I only take what I need (there is money available without surrender charges. If I take those funds out, where should I put them? Vanguard? Fidelity? I don't know where to find an investment advisor.
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It's probably small solace but traditional variable annuities tend to have an annual no penalty withdrawal limit equal to the GRIP, GRUB, GMIB (deferred growth feature) or whatever any particular insurance company calls it. It tends to be in the area of 5-6%. Any such withdrawal is LIFO so the withdrawals are taxable until all gains are exhausted.
Again, small solace but surrender fees tend to diminish each year. It's still a hit to surrender early, regardless of the year.
I wonder whether your sister has/had Power of Attorney over your account? Did she require your approval for making financial decisions? Was this a managed money account? I think that this is more of a legal question than a financial one.
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