Investment Q I put $2000.00 in a annuity act/with AMERIPRISE.?

I was going to pay $1000.00 a month into this annunity act,but decided not to do this,this was 5 months ago,should I get JG Wentworth to cash me out at a discount or what? My broker told me I cant get my money back for 7 years,when I signed , What to DO?

the penalty to close it out early will most likely be smaller than the amount JG will settle it for. Besides, I dont think they do those type of investment annuities. I think they only do structured settlements that you are currently being paid. Not 100% sure, but I think.

I think your broker just wants to keep his $50 commission he earned from you. If you close it, he has to pay it back.

You raise an excellent question for it highlights one of the unfortunate aspects of investing through an annuity. Once you鈥檙e in, you are in for the long haul even if you change your mind soon after committing. This is not to say annuities are never appropriate, for under the right circumstance, annuities can serve a very useful purpose.

Now to your question of getting your money back; you can approach this in one of three ways depending upon how much time you have.

The easy way and perhaps most expensive is to simply request your funds be returned. You will pay Ameriprise the contingent deferred sales charge (鈥淐DSC鈥?aka surrender fee) and Uncle Sam a 10% penalty if you are under 59 陆 (major bummer!). Under this scenario, you walk away with what鈥檚 left of your investment and perhaps consider changing brokers.

The second alternative is a little more involved; you simply write a letter to the firm informing them of your dissatisfaction with the investment and why you desire to get out. At the very least they have to respond (by regulation) and it may or may not result in them giving your money back. At least you will be on record as being dissatisfied with the recommendation and it might raise questions as to why your broker recommended the investment in the first place.

The third alternative is to simply do nothing. In other words wait it out. After 7 years, the CDSCs should go away and if you are over 59 陆 so too the penalty.

Best of luck!