cj
Full time employment: Posting here.
- Joined
- Jun 21, 2005
- Messages
- 517
Hi all,
I've posted this on the Morningstar site, but also appreciate the wisdom on this site, so maybe someone here can help. I am working at unwinding some questionable investments sold to my 73-74 year old parents (Wachovia Securities is the offending party). The last thing to be dealt with is a variable annuity sold to them last year (you heard me right, last year). It's the "Equitable Accumulator Plus". Someone sent me a link to the SEC site where the prospectus lives. From what I can tell:
1. The surrender charge is currently 8%
2. It looks like they can take 15% out per year without penalty.
3. Reading the prospectus, there are fees and charges all over the place. I have no idea what the total charges are yearly.
4. The investments within the annuity are mostly small- and mid-cap funds.
5. This annuity represents probably 15% of their total investments.
I thought at first they should just annuitize the thing over the shortest period they could, but if I'm reading the prospectus correctly, they can't annuitize it until 5 years after they bought it. The folks told me they told the saleswoman that they wanted this money in a few years, so this kind of ticks me off.
They have really flinched at paying the 8% surrender, and I can't blame them. I'm thinking of suggesting they:
1. Change the funds within the annuity to make them less aggressive. It looks like they can do this without charge.
2. Start taking the 15% per year out immediately
3. After a couple of years when the surrender charge is not quite so severe, yank out the rest.
Is anyone out there familiar with this particular product? Any opinions, comments, suggestions?
Thanks!!
CJ
I've posted this on the Morningstar site, but also appreciate the wisdom on this site, so maybe someone here can help. I am working at unwinding some questionable investments sold to my 73-74 year old parents (Wachovia Securities is the offending party). The last thing to be dealt with is a variable annuity sold to them last year (you heard me right, last year). It's the "Equitable Accumulator Plus". Someone sent me a link to the SEC site where the prospectus lives. From what I can tell:
1. The surrender charge is currently 8%
2. It looks like they can take 15% out per year without penalty.
3. Reading the prospectus, there are fees and charges all over the place. I have no idea what the total charges are yearly.
4. The investments within the annuity are mostly small- and mid-cap funds.
5. This annuity represents probably 15% of their total investments.
I thought at first they should just annuitize the thing over the shortest period they could, but if I'm reading the prospectus correctly, they can't annuitize it until 5 years after they bought it. The folks told me they told the saleswoman that they wanted this money in a few years, so this kind of ticks me off.
They have really flinched at paying the 8% surrender, and I can't blame them. I'm thinking of suggesting they:
1. Change the funds within the annuity to make them less aggressive. It looks like they can do this without charge.
2. Start taking the 15% per year out immediately
3. After a couple of years when the surrender charge is not quite so severe, yank out the rest.
Is anyone out there familiar with this particular product? Any opinions, comments, suggestions?
Thanks!!
CJ