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LibraryLady

Guaranteed Interest account AXA

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I ran as fast as I could from AXA in general as they were a fee pit. I do still have close to 17k stuck in their funds because I don't want to pay the transfer fees and don't want to give up my job. But I don't know how much a 3% guaranteed makes to be honest. I think you would do better in a bond fund. That said I would check into AXAs surrender fees before moving anything out. You might be better of just not putting any new money in their hands. 

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I had a portion of my AXA portfolio in a guaranteed 3% thingy... too bad the fees ate up any benefit that might've had.    My account was under  certain money limit & therefore was charged an addition $30 every quarter, on top of the annual fees and expense ratios.  I decided moving, even with surrender fees is better than getting eaten up with fees, especially once I redirected my contributions to the new provider. 

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Library Lady wrote:  I also just looked at another post here from poster grw in the thread called "Our Recent Experience with AXA"  and a supervisor at AXA confirmed the guaranteed interest account has no fees. Finally, I did find a part in the contract that said-"The fixed maturity options and the guaranteed interest option are not covered by the fee table and examples. However, the annual administrative charge, the withdrawal charge, the third-party transfer or exchange charge, and the charge if you elect the Variable Immediate Annuity payout option do apply to the fixed maturity options and the guaranteed interest option. A market value adjustment (up or down) will apply as a result of a withdrawal, transfer or surrender of amounts from a fixed maturity option."

I suspect that AXA can say "the guaranteed interest account has no fees" and mean that there are no fees that apply to that account uniquely as an expense ratio. However your contract seems to say that there is an annual administration charge that applies to the account. Do you know what it is? On the Equivest 201, it's $30/year. 

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The administrative charge is $30 a year. If I had less than $10,000 in that guaranteed interest bucket I would transfer that to the new account in a heartbeat. Fortunately or unfortunately I have nearly 8 times that amount. Again, I am assuming I can transfer the stock portion only over and leave the guaranteed interest for now. At the moment, my account setup is not completed yet at Aspire. I plan on calling today to get some info from them. The transfer process will be much more complicated now, but hopefully they will be helpful. 

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My surrender fees were only applicable to contributions younger than 7 years, although it is different I know, for others....  any chance you can "free corridor" some of the monies out over time? 

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LibraryLady, as you mentioned, there are no fees on the GIF unless the account value is under $25k then there is a $30/year administrative fee. This is what I've been told by a senior manager and the returns of my wife's account domreflec the 3% return. It's killing me that AXA has a large chunk of our money but it's stuck for now and there is nothing we can do about it. 

 

I'm considering moving the entire balance into the GIF until that time when we can rollover. Best I can tell, the rest of the account would have to do better than 5.44% to just break even after fees. I don't know if this makes sense of not. 

 

BTW, my wife is as a "LibraryLady":)

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Sorry, I would've responded sooner but I've been out of town, literally off the grid, for the past week on a hunting trip. 

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Thanks for your reply. I finally did get my account set up at Aspire and am putting through paperwork tomorrow to change my contributions from AXA to Aspire. Then I need to contact AXA to see what paperwork I need to initiate a transfer of all but my guaranteed interest account. I am anticipating it will be a PIA, but necessary. Aspire took longer than it was supposed to, 15 business days, but they answered my questions quickly so that’s what I care about. No doubt AXA will drag their feet but as long as I’m not sending more money their way, I’m happy  

I don’t know about you, but I am sick of trying to make these financial decisions! 😁

I will post an update on how this all goes. Thanks!

Married to a Library Lady? Obviously you are a smart man.

 

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Please do keep us updated, and yes it can be very frustrating dealing with this stuff. 

 

I wouldnt say smart, just very lucky!

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Just an update.  After a feeble attempt to get in touch with me so he could explain the error of my ways, the AXA "financial advisor" sent the paperwork so I could start transferring my funds. He came up with a couple reasons why this was not a good idea; the death benefit guarantee so I can never get less than what I put in, the rebalancing they do, and the guaranteed interest account. If all hell breaks loose, I suppose the death benefit guarantee could be a positive, but mostly because I haven't made a ton of money over the past 13 years, so most of the money in there is what I have put in! My rate of return year to date is 10.9%, which is the most I have ever made, but considering the market, I'm not overly impressed. Anyway, my plan is to keep the 3% guaranteed income there for now, and move the rest. That account has helped my rate of return; the bond funds in my IRA with Vanguard have been a drag on my returns, but that is not why I have them. I have already made the first deposit into my Aspire account, and it went smoothly. At least he didn't insult me by claiming I should stay for his expert advice, when he has always been too busy to meet up with me. Actually, he probably didn't call me because in my email I told him I would spare him my rant about variable annuities and how the high fees over the past 13 years has cost me a ton of money! Thanks everyone. 

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