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  1. #1

    Question Transfer VALIC Funds to a Different Retirement Company

    My question involves personal finance in the State of: Illinois.
    I work for a big university and recently retirement funds which we have had for multiple years was assigned to a new company Transamerica. Most of us have have had Valic for years. Starting at the beginning of this year, the university decided to start using the Transamerica company and I noticed I started receiving statements, request for a username and password as well as the university setting up access to this new company via our username and password for access to all locations at the university.

    Now although I consider myself to be intelligent when it comes to money matters, I have so much of it that I don't have any idea how to transfer large amounts of money from one retirement company to another. I believe they know that most regular working folks aren't knowledgable on these types of matters but that did not keep them from making this decision.
    My question is wether or not any of you out there in "getting ready to retire" land has had this issue and what did you do to get it taken care of? Did you try and transfer large amounts of money yourself, did you hire a lawyer to do it, did you speak with family members what?
    I am really pissed that I can't figure this out, but I am asking for help before I make some huge mistake that will cost me.

  2. #2
    Join Date
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    Massachusetts
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    Default Re: Transfer Valic Funds to Transamerica As New Job Company Assigned

    I work for the Benefits office of a major university.

    Are you still employed at the university? If so, you likely cannot move funds out of the ones designated by the university until you actually retire. If the funds are currently invested with Transamerica, after your retirement you would contact Transamerica and they would provide you with the forms to transfer the money to whatever fund you designate. Depending on how your retirement plans are set up, this may or may not require that someone from your Benefits office to sign off on it, but that's a simple, routine matter that rarely will take more than 24-48 hours tops.

    Your Benefits office no doubt is very familiar with this issue.

  3. #3
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    Default Re: Transfer Valic Funds to Transamerica As New Job Company Assigned

    Transamerica actively tries to direct your funds into retirement annuities. I would investigate closely on this. Once you die, they keep what is left.

  4. #4
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    Oct 2006
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    Default Re: Transfer Valic Funds to Transamerica As New Job Company Assigned

    Quote Quoting Disagreeable
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    Transamerica actively tries to direct your funds into retirement annuities. I would investigate closely on this. Once you die, they keep what is left.
    I am pretty sure that you are wrong about that, or at least mixing apples and oranges a bit. Pensions can and often do end at death. Other retirement monies cannot...even if invested in annuities. If such an annuity existed it would be something that would have to be completely voluntary of the part of the person investing the money, and it would be a HUGE risk to the company providing the annuity, as well as the investor.

    Somebody tell me if I am wrong, but does an annuity of that type even exist in the US?

  5. #5
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    Default Re: Transfer Valic Funds to Transamerica As New Job Company Assigned

    My wife and I sat through one of their agent presentations. The bait is they tell you the returns will be in the teens.

  6. #6
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    Default Re: Transfer Valic Funds to Transamerica As New Job Company Assigned

    Quote Quoting Disagreeable
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    My wife and I sat through one of their agent presentations. The bait is they tell you the returns will be in the teens.
    Dis, if you are being 100% here that would be something totally voluntary...maybe it would have been better to state that someone should not agree to anything they might suggest without talking to an independent financial advisor, rather than giving the impression that they could do it without the investor's knowledge.

  7. #7
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    Default Re: Transfer Valic Funds to Transamerica As New Job Company Assigned

    None of which changes the fact that if this is a retirement account that she gets through her employer and she is still employed there, she can't move it ANYWHERE except to another employer-sponsored fund, until she retires.

  8. #8
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    Default Re: Transfer Valic Funds to Transamerica As New Job Company Assigned

    Yes, they do offer the 401k which is what her employer transferred her into. I was just advising her what to expect from them in terms if service. They make the bulk of their money selling rollovers into retirement annuities and life insurance.

  9. #9
    Join Date
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    Default Re: Transfer VALIC Funds to a Different Retirement Company

    Quote Quoting 6ftsoccermom
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    and I noticed I started receiving statements, request for a username and password as well as the university setting up access to this new company via our username and password for access to all locations at the university.
    I'm not sure what you mean here. Are they asking you to set up a new account and register online to access that account or are they asking you for an existing username and password that you use to access your account?

    I would be careful about giving anyone your password.

  10. #10
    Join Date
    Jan 2015
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    Bedford, Texas
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    Default Re: Transfer VALIC Funds to a Different Retirement Company

    If the school has contracted with Transamerica as a vendor for its retirement plans then it would make sense that you are receiving information from Transamerica asking you to set up online access to your account for your own convenience.

    Are you asking about moving money out of your employer's plan (many plans limit your distribution options during employment) or moving between service providers on the plan?

    My suggestion to anybody looking for retirement planning is to speak to a CFP who charges you money for the time creating your plan rather than selling you products to get paid on commissions and sales charges. The financial services industry is all sales. Although you think you are the customer that is not true. You are the product the "financial advisers" sell upstream upon which they are paid commissions. They need to bring in your assets and sell you products so they can get paid. Although many mean well and believe in the products they sell, there is a natural conflict of interest between what is best for your financial needs and what is best for the adviser's financial needs.

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