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Originally Posted by HalMd
Why do I feel an annuity was a poor choice? First, an annuity offers tax shelter, but the annuity was purchased in an IRA account which is already, by definition, tax sheltered.
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That is the reason that I don't like them either.
So that you know you weren't the only one to make the mistake. My husband rolled his 401k money into an IRA annuity on the advise of his father. We were married at the time and I actually knew this was bad advice and told my husband. Unfortunately, he trusted his father so much he rolled it anyway. We actually pulled it out at a loss about 6 years later and still paid a surrender charge. It was a bad move all the way around.
The money is now at Vanguard and growing like a weed.
Thanks for sharing your lesson. Annuities are only for specific situations and are costly regardless.