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Subject:  Re: investments for the non-financially literate Date:  4/20/2013  1:15 PM
Author:  aj485 Number:  72093 of 88498

As for getting a fee-based advisor, they don't feel more comfortable about it than any other advisor--not going there.

As for couch potato rebalancing--they prefer something like a Wellington/Wellesley fund where the company takes care of it.

So they aren't willing to trust a financial advisor that they can talk to and ask questions of, but they are willing to trust a company that manages a mutual fund bought on the suggestion of a friend whom they don't trust enough to give detailed financial information, rather than have to look at their accounts once a year?

All they want is $$ arriving in their checking account every year (or month or quarter).

They may want to look at Vanguard's Managed Payout Funds

Or, have they considered single premium immediate fixed annuities? Vanguard offers these, too

The truth is these people aren't unusual. A lot of people would be happier with a pension where $$ arrives like paychecks, if smaller.

That also suggests an annuity could be appropriate.

My concern would be, if they are looking to get an annuity, or anything else where they don't have to do anything to actively manage the money, they are effectively trusting someone else to manage the money for them. But they also have indicated that don't want to have someone manage the money for them. Sorry - they have conflicting goals, and they can't accomplish both.

If I were you, I would probably just give them the list of suggestions that you got here from your interweb friends, tell them what the source is and that the advice is worth what they paid for it, and then STEP AWAY. If you do anything more, you are putting yourself at risk, both from a friendship perspective and potentially, from a legal perspective.

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