consolidating annuities
I have a question for the group. My mom has a dozen or so annuities over nine or 10 different companies that are part of my parents portfolio. My father’s not around, so a lot of this is falling on me. I would like to get them all under one account one company. I started to read about a 1035 exchange. I’m wondering if any of the annuity people on this sub Reddit have any thoughts whether this is a good idea or a bad idea. She already has them so she’s not gonna sell them. I know a lot of people are against annuities, but they already exist. She has a brokerage account with one of the large companies and I was wondering if I should transfer them via the 1035 all over to the same brokerage as long as I can get some decent rates. Thanks for any thoughts.
“You should take a look at the actual annuity contracts to see if any of them have unusual clauses (which may help or hurt you). For example, there may be some early withdrawal penalties, but these could get waived if your mom was widowed and she did a spousal continuation of your dad's contract. There might also might be tax implications depending on the contract, what you end up doing, and what state you live in, so I'd recommend chatting with a CPA. If reading the legal docs is overwhelming (they'll probably be 100+ pages of legal talk), this is actually one of the things AI like Gemini is useful for: throw it the contract pdf with your mother's situational context, then ask it questions (along with telling it to give you sources). You can then use that to go read the relevant portions of the document yourself. Annuities will generally give you less returns than if you were self managing and investing the capital yourself, but since you said exiting them wasn't something you wer”