So my fiance is under the following dilemma:
Please help me explain (much more eloquently than I can why is a bad idea...at least from what I have read)
In the next year, our combined income tax bracket is definitely going to increase (and will continue at a high bracket for eternity).
She has a Traditional 401k from a prior employer.
She also has a traditional IRA with NMA (her choice at that time, not mine).
This "advisor" is trying to create a new traditional IR and put a VA into it.
The plan is rolling over the existing 401k into the existing traditional IRA, then sell out of these shares and move that sum into the new VA (inside the new IRA).
Cited Advantages –
Future annuitization options, lower up front sales charge than brokerage options, robust Multi-fund asset allocation, no surrender charge since front load
(some of these are laughable to me)
Cited Disadvantages-
Up front sales charge – 4.5%
Ongoing expenses (mortality and expense) – 1.22
What is the potential “red flag” as it pertains to sales of the existing IRA shares purchased within the last 3 years.
Thanks for all your help in advance!
Please help me explain (much more eloquently than I can why is a bad idea...at least from what I have read)
In the next year, our combined income tax bracket is definitely going to increase (and will continue at a high bracket for eternity).
She has a Traditional 401k from a prior employer.
She also has a traditional IRA with NMA (her choice at that time, not mine).
This "advisor" is trying to create a new traditional IR and put a VA into it.
The plan is rolling over the existing 401k into the existing traditional IRA, then sell out of these shares and move that sum into the new VA (inside the new IRA).
Cited Advantages –
Future annuitization options, lower up front sales charge than brokerage options, robust Multi-fund asset allocation, no surrender charge since front load
(some of these are laughable to me)
Cited Disadvantages-
Up front sales charge – 4.5%
Ongoing expenses (mortality and expense) – 1.22
What is the potential “red flag” as it pertains to sales of the existing IRA shares purchased within the last 3 years.
Thanks for all your help in advance!
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