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Old 01-12-2009, 09:58 PM   #21
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Originally Posted by jhyb View Post
PS. I contribute $400 a month, with all this craziness, should I decrease the contribution to let's say $200?
My two cents:
1) Unless there's some type of contractual obligation (there shouldn't be), don't put another dime into this thing. As a bonus, when you stop contributing maybe your old pal/agent will give you a call to see what is up, then you can give him the chewing out he deserves.
2) Start a regular or Roth IRA with Vanguard and have your dollars go there. That's what I did over the course of my 20+ year military career and it worked out very well.
3) Consider contributing to the Thrift Savings Plan (TSP) instead of/in addition to your IRA. The costs are even lower than Vanguard's. This program is a big benefit of military service, too few servicemembers take advantage of it. If you really want to put things on autopilot, just select one of their available Target Retirement Funds and let them do all the rebalancing for you.

Good Luck!

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Old 01-13-2009, 08:35 AM   #22
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Originally Posted by jhyb View Post
Thanks everyone for your input, you all have given great insight. The person who took me into this policy was a friend of high school. Ina ny rate, I called NYlife and asked many questions.
Well, NYLife and others trains salespeople to get all the folks they know signed up first so they can survive.

I told them that my agent told me that this is compounding and guaranteed, so what's the interest?
-No interest, but we do have a fixed variable that runs 3.1%, (pshhh what the heck?). That'll cost 25%.
They might have been referring to the fact that some VAs have a guaranteed fixed option inside the contract.

-In regards to allocation changes and recommendations, who manages and gives recommendations?
Your agent (He never called me to tell me that the units are doing so horrible that I should change it)
Why would he, he's an insurance agent, he doesn't have much knowledge at all about markets and investing.........

-What fees am I currently paying in that I don't see it in my quarterly statement?
$30 plus commission for your agent
Probably the $30 a quarter is a trail on the VA.

Oh yea? How much am I paying him on commission when I'm losing money here?
-We can't disclose that information and he should have given you a prospectus on how much he is making commission. (he never has).
A BS answer, but your agent probably makes 7% on each contribution upfront, and the trail after that.

What is the surrender charge if I was to take it all out?
-This will take 9 years from intial activation of policy, since it was Oct '04 you will have to wait until 2013
CALL THEM BACK and ask how much the "free withdrawal amount" is. That's the amount that can be transferred without penalty........

PS. I contribute $400 a month, with all this craziness, should I decrease the contribution to let's say $200?
I would NOT fund it anymore at all, and when the agent calls you, tell him to find out what the "nonforfeiture settlement options" are.......

Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)

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