My parents are getting older (my father is 59 1/2) and they're starting to think about their retirement. The bulk of their retirement funds are in my father's annuity. The annuity company gives him a few options which essentially boil down to take payments or take a lump sum. Last week, my parents visited a reputable retirement planner (they're a fiduciary), and their recommendation was to take the money out and "roll it over" into an IRA. They then went on to say that they would manage the fund and charge my parents 1% on their funds per year.
I agree with the "roll it over" idea and hate the payment idea (I can get into this if people are interested but basically it's a total scam where the annuity company takes the entire principal sum and just pays you interest). However what I'm wondering about is whether or not it's worth it to allow this company to manage my parent's stuff and pay 1% or do it myself for free. I can't imagine that they're going to do anything more interesting that put the money in a certain amount of stocks and bonds which I could easily do with minimal effort by putting the money in a Vanguard target retirement fund.
Is it worth the 1% Reddit? Is there some knowledge that they have that I don't? Would I be making a big mistake by trying to manage it myself?
Submitted February 26, 2018 at 07:22AM by annuitythrowaway600 http://ift.tt/2oxTLWA
