A variable annuity has an investor constantly upset
Dear Mr. Berko:
I bought a $100,000 ING annuity in 2007, and it’s now down to $82,000. When I talk to my broker about this, he tries to get me to put more money in it and doesn’t tell me why it goes down. He said I can’t lose money, but I am losing money. When I emailed, you told me to call ING’s customer service number, and I tried and tried, but they keep me waiting until I finally lose patience and hang up. What do you recommend that I do? Please give me a list of good stocks that will pay me at least 5 percent, increase their dividend and give me some capital growth, too. I want out of this thing, because I don’t understand it, and because my broker doesn’t explain it to me. How do I cash this out?
J.N., Aurora, Ill.
Dear J.N.:
First, join the variable annuity owners group counseling association, sponsored by the American Psychiatric Association. Then call your physician and have him prescribe 10 milligrams of Valium and a bottle of Wild Turkey.
I know brokers like that. They’re two cents a dozen, which explains why there are so many. I’m not surprised by your experience, because other readers have expressed similar problems.
Someone told me that ING has caller ID and may know you want to cash out. Because they wish to limit the investors who are canceling their policies, they won’t answer your phone call. What other reason could there be?
You have choices. Call your broker’s office manager and tell him what you told me. Tell him that you want out and ask him to help you with the necessary forms.
Or you can write ING and request that the necessary papers be sent to you. But if you write ING, I recommend that you send your letter “overnight delivery” and “return receipt requested.” If you can’t trust ING to answer its customer service phone calls, then you can’t trust it to acknowledge that it has received your request.
ING is a fine company with a good balance sheet, but like most fine companies, it has its share of lousy products, one of which was sold to you by a ridiculous stockbroker. Unfortunately, ING compounded this problem with lousy service.
You invested $100,000 with ING in 2007. The company took your money quick as a bunny and charged you 6 percent commission and 3 percent per year in fees or about $18,000. In my opinion, you shouldn’t have to wait even 18 seconds to speak to customer service.
You will pay a stiff penalty to exit the policy, but you will feel a lot better.
I won’t give you the names of many issues I like for growth and income, because I don’t know your age or have personal information about your risk tolerances, income needs, etc. So I can’t suggest a stock portfolio for you. You might need bonds, perhaps more cash; maybe there’s room for aggressive growth and income issues, municipal bonds, convertible preferreds or even Treasury inflation-protected securities (TIPS).
But first, get your ING problem solved. Subsequent columns will discuss many growth and income issues that may be suitable for you.
Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or email him at malber@adelphia.net. ©2011 Creators.com
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