On Thu, 3 Apr 2008 15:00:39 -0500, BreadWithSpam@[EMAIL PROTECTED]
wrote:
>Steve M <stephen.moore@[EMAIL PROTECTED]
> writes:
>
>> After leaving a former employer I left my Individual Retirement
>> Annuity at Mutual of America and have recently converted to their
>
>You might want to reconsider that - regardless of the insurance
>or quality of the funds you've chosen in which to invest your
>IRA. MofA appears to charge 50-90bp as "annual separate account
>expenses" *on top of* the charges for managing the underlying funds.
>
>That's a lot of money they're taking from you.
>
>[And they don't tell you about it up front on their web site -
>I had to download a 300+ page prospectus PDF file and dig
>into there to find this.]
>
>I know that's not what you were asking, but it's enough
>that it's very hard to ignore.
>
>> Interest Ac***ulation Account which I assumed is similiar to a Money
>> Market account. With what's going on in the financial markets lately
>> I called to make sure my balance was protected by a government
>> insurance agency such as FDIC. The person I spoke with told me they
>
>It's not. It's guaranteed by the claims-paying ability of the
>insurance company. Mutual of America is rated AA- according
>to Insure.com. That's pretty good. But it's not the same as
>FDIC.
>
>I'd be more concerned about the high costs of the account
>there in the first place. The odds of you having a loss
>due to their credit quality are very very small - much
>smaller than the guaranteed loss you take when they charge
>high fees.
>
>Do you have a do***ented history of the returns on that
>fund? I could not find any anywhere on their site or
>in the prospectus - just the noted guarantee of 3+%.
>
>If you really do want FDIC or similar insurance, there's
>nothing stopping you from rolling that IRA over to a CD
>at a bank, a mutual fund which is invested in treasuries
>or other insured bonds. Just make sure that you do a
>custodian-to-custodian IRA rollover so you don't pay
>taxes (and possibly penalties) when you do it. Not only
>will you get the insurance/guarantee you seem to want,
>but you can also avoid that 90bp/yr fee MofA is apparently
>charging you.
Thanks for the response. I will start researching other places to put
this. They were paying 5% on this fund when I switched in 09/2006 but
currently it's paying under 4% and expect it will drop in the next
couple of months.
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