IRA Converted Into a Variable Annuity - Can I get surrender charges waived?

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5boro
Posts: 5
Joined: Wed Aug 08, 2018 9:41 pm

IRA Converted Into a Variable Annuity - Can I get surrender charges waived?

Post by 5boro » Thu Aug 16, 2018 12:25 am

[Moved into a stand-alone thread from: IRA Converted Into a Variable Annuity (2008) --admin LadyGeek]
steersman wrote:
Sun Nov 16, 2008 6:08 pm
Hi Pearl,

A similar thing happened to my mom a few years ago. I was able to get her surrender fee waived and transferred her entire balance to Vanguard doing the following:

1. Write a letter of complaint to the firms compliance officer.

2. Threatended them with filing a complaint with the NASD/SEC for them putting an IRA into a VA.

My advice is to fight them tooth and nail and get your surrender fee waived. Good luck to you.

Dave

Steersman (or anyone else)

Read your helpful annuities posts and need your advice.

Recently, my mom had me to accompany her to a meeting with her retiring financial advisor (a MetLife life insurance agent). The meeting was ostensibly to meet the new rep who would manage my mom’s accounts for a 1% fee. They gave us a one page summary of my mom’s accounts. I found weeks later that my mom’s existing tax deferred IRA accounts were placed in annuities (1.5% M&E fees). That wasn’t mentioned at the meeting or in the handout. My mom was also paying 14K a year for an absurd whole life policy. With both products, my mom had no clue what she was buying.

Long story short we cashed out the whole life policy and paid 16K in surrender fees to get out of the annuities, putting the funds in Vanguard (IRAs).

I read your posts about writing to the compliance officer/SEC/FINRA to get the surrender charges waived. I didn’t want to lose precious time in fighting them on the surrender charges and staying in an account earning less than a CD. So I bit the bullet and hightailed it to Vanguard. Do you think it’s worth a shot to get the fees refunded at this point?
Last edited by 5boro on Thu Aug 16, 2018 5:16 pm, edited 2 times in total.

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Stinky
Posts: 192
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: IRA Converted Into a Variable Annuity - Can I get surrender charges waived?

Post by Stinky » Wed Aug 29, 2018 3:21 am

5boro wrote:
Thu Aug 16, 2018 12:25 am
[Moved into a stand-alone thread from: IRA Converted Into a Variable Annuity (2008) --admin LadyGeek]
steersman wrote:
Sun Nov 16, 2008 6:08 pm
Hi Pearl,

A similar thing happened to my mom a few years ago. I was able to get her surrender fee waived and transferred her entire balance to Vanguard doing the following:

1. Write a letter of complaint to the firms compliance officer.

2. Threatended them with filing a complaint with the NASD/SEC for them putting an IRA into a VA.

My advice is to fight them tooth and nail and get your surrender fee waived. Good luck to you.

Dave

Steersman (or anyone else)

Read your helpful annuities posts and need your advice.

Recently, my mom had me to accompany her to a meeting with her retiring financial advisor (a MetLife life insurance agent). The meeting was ostensibly to meet the new rep who would manage my mom’s accounts for a 1% fee. They gave us a one page summary of my mom’s accounts. I found weeks later that my mom’s existing tax deferred IRA accounts were placed in annuities (1.5% M&E fees). That wasn’t mentioned at the meeting or in the handout. My mom was also paying 14K a year for an absurd whole life policy. With both products, my mom had no clue what she was buying.

Long story short we cashed out the whole life policy and paid 16K in surrender fees to get out of the annuities, putting the funds in Vanguard (IRAs).

I read your posts about writing to the compliance officer/SEC/FINRA to get the surrender charges waived. I didn’t want to lose precious time in fighting them on the surrender charges and staying in an account earning less than a CD. So I bit the bullet and hightailed it to Vanguard. Do you think it’s worth a shot to get the fees refunded at this point?
I'd definitely say that it's worth an hour of your time to write a strong letter to the compliance officer. And copy the CEO of the insurer and anyone else you can think of.

If nothing happens, all that you've "spent" is an hour of your time.

And there's huge upside, if you get even a partial refund of the $16K surrender charge.
It's a GREAT day to be alive - Travis Tritt

Bronco Billy
Posts: 50
Joined: Tue Jan 23, 2018 11:27 pm

Re: IRA Converted Into a Variable Annuity - Can I get surrender charges waived?

Post by Bronco Billy » Wed Aug 29, 2018 6:50 am

When i went with a FA he talked me into going with 3 annuities. These annuities had a 30 day window that i could back out of them. When my FA sent the contracts to me the 30 window had already passed. I did call one of them but never really pushed cancel the policy. I always wondered how many other FA did the same thing.

5boro
Posts: 5
Joined: Wed Aug 08, 2018 9:41 pm

Re: IRA Converted Into a Variable Annuity - Can I get surrender charges waived?

Post by 5boro » Mon Sep 03, 2018 11:21 pm

Thanks Stinky. Yes, it wouldn’t be a big time investment for my part with a huge upside. My mother doesn’t really want the hassle and always just “wants to look forward.”

I know there are lawyers who handle annuity cases, not sure if it is worthwhile to get one involved. We also were “friends” with the agent who sold the annuities, wondering if I should give them a heads up first or say hey can you get our surrender charge back otherwise we are writing to the compliance officer.

Bronco, I guess you kept the annuities. I hope they’re good products, unlike the ones my parents were sold.

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Stinky
Posts: 192
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Location: Sweet Home Alabama

Re: IRA Converted Into a Variable Annuity - Can I get surrender charges waived?

Post by Stinky » Sun Sep 09, 2018 1:04 pm

5boro wrote:
Mon Sep 03, 2018 11:21 pm
Thanks Stinky. Yes, it wouldn’t be a big time investment for my part with a huge upside. My mother doesn’t really want the hassle and always just “wants to look forward.”

I know there are lawyers who handle annuity cases, not sure if it is worthwhile to get one involved. We also were “friends” with the agent who sold the annuities, wondering if I should give them a heads up first or say hey can you get our surrender charge back otherwise we are writing to the compliance officer.

Bronco, I guess you kept the annuities. I hope they’re good products, unlike the ones my parents were sold.
Probably not worthwhile to get a lawyer involved.

But I would definitely let the agent know. Maybe copy him on the letter that you write. Too bad that a "friend" led you down a bad path.
It's a GREAT day to be alive - Travis Tritt

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