I've been working for the same school district for 3 years now. Two years ago I received an email from the district indicating that a retirement planning seminar will be held at the district office so I decided to go. A rep from Teacher's Pension and Insurance Services went over the importance of saving for retirement early and reviewed the different types of annuities (fixed, indexed, variable). At the time, I knew I wanted to start saving for retirement early and I was under the impression that the rep was someone from the district who would provide me an objective overview of my retirement options (I know, very naive of me). I met with the rep one-on-one and signed up for an indexed annuity through National Life Group/Life Insurance Company of Southwest. He assured me that I was doing the right thing by getting into something early and that it didn't matter so much what it was, as long as I started saving (big mistake). I signed my life away and as I am now learning more about these pesky insurance plans, I really regret what I did. I currently have $4,200 in the National Life Group indexed annuity (Secure Plus Elite 5). I want to get out of that plan but there is a 10% surrender fee. I'm 31 years old and have many years of saving ahead of me. I am thinking that paying $420 now to get out of this plan will not be too bad in the long run? Maybe I could make that back over time with another company with higher returns? National Life Group's website is terrible and super confusing... I cannot even tell how much my money has appreciated so far (I know it is not much though). My district offers several options for 403b:
American Century Investments
American Fidelity Assurance Company
American Funds Ameriprise Financial, Inc.
AXA Equitable Life Insurance Company
Foresters Financial (formerly First Investors)
Franklin Templeton Bank and Trust
Great American Life Insurance Company (Annuity Investors)
Horace Mann Life Insurance Company
Jackson National Life Insurance Company
Life Ins of SW / National Life Group
Lincoln Investment Planning
Lincoln National Life Insurance Company
MetLife Insurance Company
Midland National Life
North American Company for Life and Health
Oppenheimer Funds Distributor, Inc.
Pacific Life Insurance Company
Plan Member Services Corporation
Security Benefit Group
The Legend Group/Adserv
USAA Life Insurance Company
Voya – ReliaStar Life Insurance Company
Waddell & Reed, Inc.
I have heard wonderful things about Vanguard and would be interested in transferring my money there. Are there any other reputable companies from the above list that I should look into? What are your thoughts about paying the 10% surrender fee to transfer the money to another company? Should I let the money sit or transfer?
Thanks for your help!