Posted on March 21, 2010.
AXA Equitable offers investment grade bonds for TSA plans and guarantee of interest. Compare the advantages, disadvantages.? Investment Grade Bond:
1. You receive interest income of companies issued the bond (IOU)
2. Price of shares you purchased (Main) may fluctuate due to:
A. Evaluation of these companies financial strengh.
B. Current interest rates.
C. Current Market situation.
D. Policy
Guaranteed Interest plans:
1. You will receive a fixed amount of interest income.
2. Your capital is guaranteed.
Beware of the lock until the time of your principal and interest. Check with the TSA company if you can spend all your money in this sub-account to another sub-account without penalty.
Do not get a Fix TSA, TSA obtain a variable, it is a TSA Fix with more options.
Personally, I would seek out mutual funds at a lower cost provider of cost as a Fidelity or Vanguard if approved for your 403b plan, and if you are 15 + years of retirement . I see people pay enormous taxes to AXA, Hartford, and other "insurance" groups in terms of choosing similar investments held by the suppliers at lower cost. Or, they offer these recommended "plans that have rediculously high fees for what you get.
I have a TSA that I have to use a provider of high cost. Their costs on an index fund is a vast market of nearly three times what I pay Vanguard or similar. It just kills me, but it was by far the best choice available. However, you can only use approved suppliers for your plan, you may be stuck.
