street
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- Joined
- Nov 30, 2016
- Messages
- 9,625
Today I exchanged an annuity and a smaller amount in an account that was getting 3.4% interest for life. The annuity was in mutual funds with a death benefit tied to it and I got rid of the 1.2% charge from that annuity. No charges from them now going forward. This was a 10-day window offer they had going.
The exchange was for 5.5% interest rate for 9 years I put in 400K. It is money that I don't expect to use so I did the exchange. No taxes will be required on it till I start taking the money out. I also can take 10% each year from the account without any penalties.
Not sure I did the right thing, but I bought the annuity back in 2003 and at that time it seemed like a good thing to supplement my later years. As it turned out it was a tool, I didn't need in my tool bag.
So, was it a bad move?
The exchange was for 5.5% interest rate for 9 years I put in 400K. It is money that I don't expect to use so I did the exchange. No taxes will be required on it till I start taking the money out. I also can take 10% each year from the account without any penalties.
Not sure I did the right thing, but I bought the annuity back in 2003 and at that time it seemed like a good thing to supplement my later years. As it turned out it was a tool, I didn't need in my tool bag.
So, was it a bad move?