Tilted Forum Project Discussion Community - View Single Post - I think my financial advisor screwed up...help?

Missy · 11-11-2004, 03:18 PM

When I first started working at my company about 4 years ago I had to start a retirement plan. I wasn't sure which to choose and was soon contacted by a guy from a major company who handled quite a few employees at my company. I checked around and he came pretty highly reccomended so I went with him. I sent up an IRA and he recommended I start a Roth IRA. Well we all know the benfits of a Roth so I did and have been contributing for the past 4 years and have about $4500.00 in it.

Well about a month ago I get a letter from the investment company saying this guy has left the company and my account has transferred to a new manager. Well I met with her and things were going well until I found out that my Roth IRA was now in some goofy insured annuity fund that I can't take ANY money out of for 19.5 years. Now this money is insured for the full amount vs. any loss or if I die (which doesn't make much sense since investments should make money over time and shouldn't need insurance). I am paying like 2% yearly for this 'insurance'.

I never agreed to this sort of arraingement and am quite upset about it. I now have to pay penalties of about 12% to move my Roth money into a mutal fund account and another 5% to buy these mutual funds. I spoke to my parents financial advisor and he said the insured annuity approach was highly unusal for someone so young. I also find out the guy who set this up left the company suddenly and no one really wants to discuss why.

Can anyone give me any advice? Do I have any recourse? Do I have a right to demand that any transfer fees be waives? HELP!

11-11-2004, 03:18 PM	#1 (permalink)
Missy Crazy	I think my financial advisor screwed up...help? When I first started working at my company about 4 years ago I had to start a retirement plan. I wasn't sure which to choose and was soon contacted by a guy from a major company who handled quite a few employees at my company. I checked around and he came pretty highly reccomended so I went with him. I sent up an IRA and he recommended I start a Roth IRA. Well we all know the benfits of a Roth so I did and have been contributing for the past 4 years and have about $4500.00 in it. Well about a month ago I get a letter from the investment company saying this guy has left the company and my account has transferred to a new manager. Well I met with her and things were going well until I found out that my Roth IRA was now in some goofy insured annuity fund that I can't take ANY money out of for 19.5 years. Now this money is insured for the full amount vs. any loss or if I die (which doesn't make much sense since investments should make money over time and shouldn't need insurance). I am paying like 2% yearly for this 'insurance'. I never agreed to this sort of arraingement and am quite upset about it. I now have to pay penalties of about 12% to move my Roth money into a mutal fund account and another 5% to buy these mutual funds. I spoke to my parents financial advisor and he said the insured annuity approach was highly unusal for someone so young. I also find out the guy who set this up left the company suddenly and no one really wants to discuss why. Can anyone give me any advice? Do I have any recourse? Do I have a right to demand that any transfer fees be waives? HELP!