After college I started contributing to a Roth IRA through a financial advisor that I knew and trusted. I had it for 10 years, then in 2009 I moved and found a new advisor based on a referral from someone I trusted, he's a CFP. He put me in a new mutual fund but in addition, he wanted to take my Roth Funds and roll them into a "Variable Annuity" because he thought it perform better with more advantages than disadvantages. I asked him a lot of questions and he had ready answers that sounded appealing.
Now I'm looking at the performance and it's not that good, the fees are astronomical, and I'm reading about Variable Annuities wrapped inside Roth IRAs and it sounds bad. I want to rollover again, to leave the Variable Annuity and put the funds into a Vanguard or Fidelity account. Again, I have a variable annuity, but the tax treatment is "Roth IRA".
I've had the Variable annuity over four years and as such, the penalty is 0. But here's my question. Is the penalty 0% for the whole investment, or only the part I invested in 2009. What about later contributions? i've been funding it since 2009.
Can anyone explain why I need a variable annuity in a Roth IRA? Is there a reason to hold onto it? Are there any pitfalls to rolling it over to a mutual fund or ETF Roth IRA with Vanguard/ Fidelity? I'm 43 years old...