So I am fresh out of Fellowship for 2 years now coming to the WCI game late but better late than never! I have recently refianced my student loans with Sofi and saving as much as I can - no fancy car (both cars paid off). My wife a physician and only debt student loans for both of us and our mortgage. We met with a financial advisor while I was in fellowship because recommended by colleagues. We fell into the Annuity trap. We both got into a Northwestern Mutual annuity with Life/retirement. We are about 14 months into it. We want out! what is the best way to get out and get the most of our investment (If I can call it that) back. I understand the surrender fees and tax on gains (if any) we will pay. It just bothers me that the advisor (salesman for a lack of better description) is getting paid a good amount from this. Thanks for the advise.
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Thanks for the help. I stopped payments this month meeting with "my advisor" to get out. I figured I would lose out on this but wonder if there is anything I should watch out for if my advisor tries to make me get into something else? Or what is the average amount I should expect to lose out on? 30% or 50% of my investment.? Thanks for your comments
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I wouldn't suggest closing out the annuity and paying the surrender charges.
A better option may be to definitely stop further contributions, wait until the annuity's surrender charges end (probably 7-10 years), and the do a 1035 exchange to a low-cost no-load variable annuity like those offered by Jefferson National or Vanguard.
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