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

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!

gar1976 · 11-11-2004, 07:17 PM

Annuity funds suck, and as far as I know, you're screwed UNLESS you can prove you never requested this investment. Get the docs from the investment company, and if they can't provide any, threaten to raise holy hell with the regulatory agencies.

eribrav · 11-13-2004, 07:48 AM

Did you give this adviser full authority to invest and direct money on your behalf? If you did it will be more difficult to recover, although still possible.

Merlocke · 11-16-2004, 10:19 PM

It pays to read what you sign before signing it. The advice from the folks above would be good to take a look at. If however you didn't sign anything allowing them to do such a thing, then shame them publicly to the world over the internet.

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!

11-11-2004, 07:17 PM	#2 (permalink)
gar1976 Custom User Title Location: Lurking. Under the desk.	Annuity funds suck, and as far as I know, you're screwed UNLESS you can prove you never requested this investment. Get the docs from the investment company, and if they can't provide any, threaten to raise holy hell with the regulatory agencies. __________________ Blistex, in regards to crappy games - They made pong look like a story driven RPG with a dynamic campaign.

11-16-2004, 10:19 PM	#4 (permalink)
Merlocke Location: Canada	It pays to read what you sign before signing it. The advice from the folks above would be good to take a look at. If however you didn't sign anything allowing them to do such a thing, then shame them publicly to the world over the internet. __________________ -=[ Merlocke ]=-

11-13-2004, 07:48 AM	#3 (permalink)
eribrav Junkie Location: upstate NY	Did you give this adviser full authority to invest and direct money on your behalf? If you did it will be more difficult to recover, although still possible.