Annuity vs Mutual Fund question?

[trimatty471]

My dad has annuities with 3 different companies.  He has not earned much interest over the ten years he held them.  His financial advisor wants him to put his money in a 5 year annuity or CD (not sure)?

Can he roll over those funds to a brokerage (mutual fund)?

If he can move the money, should the financial advisor do it or should he contact the brokerage house (Ex:  Vanguard)?

[MN-Investor]

I'm just guessing that it all depends on the terms of the annuity. Without reading the documentation, you can't guess.

[CCL]

Is the advisor someone new who might actually be trying to offer helpful advice? Or are they the same person who sold him the other annuities and looking for another commission?

[jerseygirl]

We have annuities now but these take the place of the individual bonds we had. The bonds were sold when coming due and available bonds for purchase had low interest rates. My annuity yields about 8% . In no way is an annuity comparable to stocks. But it’s a stable source of income and we don’t care if only a limited amount can be cashed in yearly. Right now it’s about 10% of original funding that can be removed without penalty yearly. But we don’t plan to cash this in but just let it grow. I do take monthly payments . Our kids will inherit the money originally used to fund the annuity , original amount is guaranteed and there may be some increase but not sure
Monthly payments increase yearly

[trimatty471]

Aug 25, 2021 10:49:06 GMT -5 CCL said:

Is the advisor someone new who might actually be trying to offer helpful advice? Or are they the same person who sold him the other annuities and looking for another commission?

He is someone new.

[nidena]

You don't need an advisor to roll annuities over.  You can contact a rep from whatever company you'd like to use--Schwab, for example--and let them do the work of completing the rollover paperwork.

A quick perusal of google says a traditional ira may be better than a mutual fund, depending upon numerous factors.

[CCL]

You can easily hold mutual funds in a traditional IRA. It doesn't need to be one or the other.

Has he looked into what penalties or costs there are for moving the annuities?

He could talk to Fidelity or Vanguard and see what services they offer. He may not need an advisor at all.

[trimatty471]

re: Talking to Vanguard.
That's what I thought.

He is still hell bent on talking to the advisor.  But I will convince him to reach out Fidelity or Vanguard.