Thursday, August 31, 2006
3 Retirement Deals You Can Do Without
Last December, Tom Donofrio decided it was time to get serious about retirement. So with the help of a financial adviser affiliated with MetLife, the 39-year-old father of two transferred money that had been sitting in a 401(k) at a previous job into an IRA rollover account invested in mutual funds.
Or so he thought. Donofrio didn't understand that the bulk of his retirement savings - some $22,000 - had actually ended up in a variable annuity, an insurance product that puts your money into a fund-like portfolio but typically carries fees that are much higher than those of funds. In Donofrio's case, those charges can run as high as 2.8 percent a year, at least double what he could be paying for a portfolio of funds.
3 Retirement Deals You Can Do Without
Source: CNN/Money
Or so he thought. Donofrio didn't understand that the bulk of his retirement savings - some $22,000 - had actually ended up in a variable annuity, an insurance product that puts your money into a fund-like portfolio but typically carries fees that are much higher than those of funds. In Donofrio's case, those charges can run as high as 2.8 percent a year, at least double what he could be paying for a portfolio of funds.
3 Retirement Deals You Can Do Without
Source: CNN/Money
Permalink posted by armandn @ 12:55 PM 
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