Hi all,
I'm seeking advice on managing my 87-year-old mother's retirement account.
Unfortunately, she has an annuity from SEI, supposedly set up by a family "friend." I don't have much knowledge about annuities, but from what I've read so far, SEI and annuities don't seem to have the best reputation.
It appears that she's paying a "financial advisor" a fee of 1.2% of the total value of her portfolio (around $126k). I want to figure out the best solution for her.
Initially, my gut feeling is to fire the advisor, ditch the annuity, and move the money elsewhere, but I’m not sure about the ramifications of that approach. I tend to favor more drastic solutions, but I realize this might not always be the best course of action.
So, as I try to wrap my head around the situation, I have a few initial questions:
Question 1: What type of annuity is this? I’m assuming it’s a variable annuity because it consists of a number of investment funds—though they’re all SEI funds with higher-than-average expense ratios. Is that correct?
Question 2: At the very least, would it be possible to fire the financial advisor and manage the annuity on her behalf?
Question 3: Should I work with the advisor to transition her into lower-cost investments? For instance, could I consider moving her investments to something like Vanguard?
Question 4: Cash-out options: She’s likely had the annuity for 10-15 years. Would there be a point where it makes sense to cash it out and move the funds to another retirement account?
Question 5: Alternative retirement account option: If cashing out is possible, what kind of retirement account would be most appropriate for her? Would an IRA be the best choice?
Question 6: Is there anything else I'm missing?
Thanks in advance for any insights you can share!
I'm seeking advice on managing my 87-year-old mother's retirement account.
Unfortunately, she has an annuity from SEI, supposedly set up by a family "friend." I don't have much knowledge about annuities, but from what I've read so far, SEI and annuities don't seem to have the best reputation.
It appears that she's paying a "financial advisor" a fee of 1.2% of the total value of her portfolio (around $126k). I want to figure out the best solution for her.
Initially, my gut feeling is to fire the advisor, ditch the annuity, and move the money elsewhere, but I’m not sure about the ramifications of that approach. I tend to favor more drastic solutions, but I realize this might not always be the best course of action.
So, as I try to wrap my head around the situation, I have a few initial questions:
Question 1: What type of annuity is this? I’m assuming it’s a variable annuity because it consists of a number of investment funds—though they’re all SEI funds with higher-than-average expense ratios. Is that correct?
Question 2: At the very least, would it be possible to fire the financial advisor and manage the annuity on her behalf?
Question 3: Should I work with the advisor to transition her into lower-cost investments? For instance, could I consider moving her investments to something like Vanguard?
Question 4: Cash-out options: She’s likely had the annuity for 10-15 years. Would there be a point where it makes sense to cash it out and move the funds to another retirement account?
Question 5: Alternative retirement account option: If cashing out is possible, what kind of retirement account would be most appropriate for her? Would an IRA be the best choice?
Question 6: Is there anything else I'm missing?
Thanks in advance for any insights you can share!
Statistics: Posted by dwright — Tue Jan 07, 2025 1:54 pm — Replies 1 — Views 91