eminded26 wrote:Parents are looking into moving their Traditional IRA away from what AXA Equitable Calls their Accumulator Plus IRA.
From what I could gather, the funds it's investing in and expenses are such:
EQ/Common Stock Index
EQ/International Core PLUS 0.83%
EQ/BlackRock International Value - 1.43% (5.25% front-load)
EQ/T. Rowe Price Growth Stock - 0.73%
EQ/GAMCO Small Company Value - 1.12%
They're looking at a simple Index fund, like a Vanguard Target Retirement 2015, instead. Expense ratio - 0.18%.
This AE product was sold to them by a broker at Wachovia.
Anybody have any good or bad feelings about either product?
Several years ago we allowed two Equitable salesman to try and sell us an "Accumulator Plus" (Variable deferred annuity.) It is among the most complicated financial products I have ever seen. I couldn't understand it and I was once an insurance salesman. The two Equitable salesmen couldn't answer anything beyond very basic questions.
I still have the Prospectus. It contains 176 pages of small legalized print.
Fortunately, I remembered financial expert Jane Bryant Quinn's sound advice:
"You shouldn't buy anything too complex to explain to the average 12 year old."
You and your parents should try to get all the information you can to make an informed decision.