I’m kicking myself for transferring my rollover 401k from Vanguard to the account my advisor recommended. I’m just now realizing that I have this 7 year ‘charge’ if I take it out before the end of that period. I’m so frustrated about it and want to know what’s the best financial way to deal with this? The 7 year fee is equal to the surrender charge.
Hey Rachel! Can you tell me any more about this new account? What type of account is it? What’s your money invested in? How much is the charge? If you come to office hours tonight (12/9) we’ll talk about it there!
It’s listed as an IRA. The annual contract fee is 1.45% and the surrender charge in the first year is 8.5%. The surrender charge decreases 1% for the next 4 years and then 2% the next 2. It looks like there are 17 different asset allocations being invested in ranging from JNL/Mellon Information Technology Sector to JLN/RAFi Fundamental Asia Developed. I’m also noticing that there are twice yearly rebalancing charges being assessed. I’ll be at the office hours this evening. Thanks.