"I Fell For An Annuity Scam"

Xander shops all the top term insurance companies to save you money. Get started at xander.com. >> I fell for the annuity scam and didn't know it was a scam until after I did it and after my 20-day window was over. Um in October we rolled $689,000 of my husband's 401k into a fixed annuity and they gave us a 5% bonus. So the value today is 724. Uh the problem is the insurance company as I'm sure you know keeps 22% of that and the first year surrender charge is 13%. So my question is do we stay until the surrender charges drop? Um especially given you know >> I mean this is 30 days old. This is 30 days old. >> It's um a it's over that. It was in October. >> Well okay. I mean it's 45 days old. Yeah. He told me it's too late. He told me I had a 20-day window. >> This is the insurance agent that told you this. This sold you this crap. >> Correct. >> Okay. Good. All right. Um I don't know is the answer, but I want more information because I don't believe the person who sold me something that's bad to start with. That's not a good source of information. >> Fair. Fair enough. So go to ramseysolutions.com and click on smartvester pro and get one of our Smartves Veester Pros there in your area that you can talk to and and tell them what you've got and see if uh the insurance commissioner in Texas will grant you a little more leeway than that and you get 100 cents of the dollar back. >> Okay. >> And then get back out of it. So, um, yeah, and then get this into some good investments that aren't so front-loaded and crappy in performance, >> right? >> So, um, >> so do you recommend a index fund? >> Um, I recommend a fruit jar before you do this, but um uh but the Yeah, an index fund is fine. um it was a 401k and so uh you've got you need to roll it into an IRA and based on the fact that it's in an IRA I'm probably going to put it in the four types of mutual funds that mine are in which is a fourth in growth growth in income aggressive growth and international with long track records that's what mine are in and I'm 65 how old are you >> I'm 62 >> okay >> my husband is about to be 60. >> Okay. So, yeah, same category and that's what mine are in cuz I'm going to leave it alone and then you've got to start talking about moving some of it out of there before you get to 73 and a half because you're going to have RMDs required minimum distributions on your 401k. You're going to have that in the annuity as well, by the way, because it's probably a qualified plan, too. So, um meaning it's a nice >> What do I do if they won't move it and we're stuck with the 13%. get the I I would take 13% hit and move it because you may make 13% in Q1. One quarter of the of the stock market might be 13%. You know, it's certainly going to, you know, you're going to make your money back quick enough. Um uh the the and but I'm going to I'm not going to accept Joe Bob's answer. Okay? I I want your I want your I want somebody that that that knows the laws and and the the tolerance for this in with the Texas Insurance Commission to put their hands on this. It may be, but if I'm you and it's going to cost me 13% in stupid tax to get this moved, you'll make that back up in good investments rather than being stuck in this thing. >> And the other thing is every day you wake up and you see the company name, you're pissed again. I don't want to live like that. Yeah. >> Now, let's recap. Let me >> for my mistake. >> No, it's okay. Everybody makes mistakes. You You were hoodwinkedked. So, let me tell people what happened to you, and you tell me if I'm right. >> A person contacted you in your 60s about helping you create a very stable, predictable investment that would grow without taxes. And they are an investment adviser. They're a financial advisor. And the company name is a insurance company name not an investment company name but they posed as and sell themselves as an investment adviser. Is that what happened? >> Close. I actually reached out to them >> because they were promoted by a person in the church that's well known that I trust and follow. >> Yeah. >> And then they dropped some big names of people that they've helped and whose money they manage. And so that's what got me hooked. >> Yeah. But it's a you did not place your money with an investment company. You placed your money with an insurance company. >> Correct. >> And going in you were not planning on doing that. That's not what you signed up for. You signed up for to do some investing. >> Correct. >> And then they they but they insurance agents are licensed only to sell insurance products. Annuities are insurance products. They cannot sell mutual funds. And so this is what they sell is this crap. And um and they put people in and they can even sell a decent product which is a variable annuity, but I wouldn't even put you in that because you're getting double feed. So it's just a it's a Yeah, man. It's awful. I'm sorry you're having that. I But if it if you only lose 13%, I would be in good investments versus a fixed annuity. Fixed nuity is like a high yield savings account rate. It's going to pay you four or five percent. If you make 12 or 14 on something in two years, you made your money back if that's all you make. And you ought to make more than that if you watch what you're doing and get some real help. So, uh, as a possibility anyway, depending on what the markets are doing. So, yeah, I I'm I'm out of there. Wow. That infuriates me, John. That's Well, it's somebody else getting prayed on in their 60s, right? We talked about earlier. >> Yeah. >> Um, tell me this. So when she says 13%, is that of the growth since this thing was moved or is that over the like 13% of the entire portfolio? >> Entire portfolio. >> Good gosh. >> Yeah. Yeah. Cuz they're going to get their blankety blank commission no matter what. >> That's a crazy amount. >> Yeah. Well, the insurance business is all frontloaded. It's all they all get their money on the front end of everything. And um so these are frustrated life insurance agents is what they are. They're not real good. And so sometimes you I see these things, okay, the whales jumping on the >> Pacific Life and we'll help you and you got people walking and they're holding hands in a rose garden and they're retiring and all this bull crap. It's it's stupid but life insurance stuff. My daughter, you're not going to believe me. My daughter yesterday, her and I I wouldn't watch one of one of Blueie or whatever she wanted to watch. I wanted to watch football games. So, she curled up on the couch next to me and they had they had a commercial and she said, >> "What does that have to do with whatever it is they're selling?" She's nine. And I was like, >> "Not a lot, Josephine. Not a lot. >> It's called branding. It's called branding." But yeah. >> Yeah. And so, if if the if the name of the company you're getting ready to do your investment in air quotes with has insurance in the name, you're about to get screwed. That's a good way to remember it. Okay. done. >> So, I mean, if you don't do in you don't get your muffler fixed at the transmission store. You don't do investments with insurance. Okay? It's that simple. We go, you know, go qualified people who have securities licenses, not insurance licenses, to help you do real investing. >> I just can't believe a penalty on anything would be 13% of the total of your portfolio. What >> And how about this? 20 day or 26 days with a 20-day cut off. Oh, no, ma'am. We can't do that now. What business does that? >> Yeah, someone who is Home Depot will take your lawnmower back 2 years after you bought it and give you a full refund. But not these bozos. Xander is the best place to find term life insurance to protect your family. Visit xander.com for quotes