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MKohlhaas

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  1. MKohlhaas

    Fleeing The Dreaded Axa Variable Annuity

    So I really truly want to thank all who have given their thoughts and advice here. It truly is really helpful and meaningful to have this kind of guidance. At this point she seems to be leaning toward the Pension2 option given that she is a bit more conservative and likes the idea of their being a fixed interest account (in the case of the Pension2 this would be the Voya Fixed Plus III). The good thing is that she has her pension through Calstrs, so it's not as if all of her retirement funds have been wasting away at the hands of Axa. I happened to listen to the annuity podcast myself, which is part of what motivated us to get rid of what we have with Axa. Even if the creators of those Easy Choice portfolios were drunk at the time, they sure as hell produced something a lot better than what Axa has to offer. ;) So it looks like the course of action is to call Axa and figure out what would have to be paid to surrender the contract. I'll update everybody on the process as things continue along. Thank you again, all!
  2. MKohlhaas

    Fleeing The Dreaded Axa Variable Annuity

    I may just end up doing that tomorrow, but we can't help but want to avoid dealing with them now if possible. Perhaps some additional useful information will reveal itself on this thread.
  3. MKohlhaas

    Fleeing The Dreaded Axa Variable Annuity

    I really appreciate the response and your suggestions. I've been doing all I can to read over this thing as carefully as possible (especially the "Termination of This Contract" section). By what I can tell, there will not be a withdrawal charge because she is at least 59 and 1/2 and has had the contract for at least 5 years. In their language, it appears that the Cash Value will be equal to the Annuity Account Value (which is a good thing for us). My concerns are that they state, "If this Contract is terminated, surrendered or exchanged prior to your Retirement Date, any applicable tax charges we have paid me be deducted." Also, they state that they can defer payments from the "Guaranteed Interest Division" for up to six months (this is the portion that is supposed to provide stability to the account by guaranteeing an interest rate). Perhaps somebody who has gone through all this can comment on either of these (or other) issues? Thank you very much for the suggestion! That is similar to what we were looking at through the Calstrs Pension2 option. I hadn't realized that Vanguard offered a similar fund. Vanguard's fee is 0.14% plus $15 vs. Calstrs 0.41%! We may have to reconsider Calstrs... I think what she did like about Calstrs was there there would be a fixed equity account at 3.5% interest. I'll have to discuss this with her. Thank you again, Tony!
  4. I've had the great fortune of happening upon 403bwise, and after reading a lot here, I've decided to come forward and seek the wisdom of these forums My mother is a teacher at a public high school in California. She is now 60 years old. About 8 years ago, she signed a contract with Axa for their Equi-vest 403b variable deferred annuity. It very recently came to our attention that this was bad decision. I am sure most of the readers here know of Axa's exorbitant fees, dense contract, and many of the other issues that often come with variable annuities (thanks to these forums I now am one of those in the know too!). Anyway, my first question is: how much should she expect to pay in charges and fees if we decide to surrender this contract and rollover the money into a much more favorable account? If I've understood the contract correctly, there will be no withdrawal charge given that she is older than 59 and a half and had the contract at least 5 years. Are there other potential charges or issues we may not be aware of? My second question is: what option would be recommendable for a rollover? Here is a link to the list of her options: https://www.403bcompare.com/Employee/MyEmployer/EmployerDetail.aspx?eid=107682. Some of her options are Calstrs Pension2, Vanguard, and T. Rowe Price. We are leaning toward Calstrs Pension2 given that they have "Easy Choice" portfolios, which seem inexpensive and simple. Thank you for your time and any help you can provide. :)
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