UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next
Author: cliff666 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: AXA Equitable Asset Mgt Investment Date: 6/16/2005 12:19 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Again, a VA is not for everyone, but neither is a go-it-alone mutual fund. I see clients every month that tried it on their own and lost much of their life savings. Telling them they saved money with a no-load fund that had little or no 12b-1 fees is of little comfort to them.

I can't tell you how strongly I disagree with you on VA's. I have one, with American Legacy, which has underperformed by almost any measure. I blame the extra 1% fees associated with the annuity. I also have a variety of index funds, but mainly VEXMX and VGSIX which have outperformed. It appears that when you say "Index Fund" you mean an S&P emulator, whuch has underperformed of late. Check back in 20 years and we'll compare notes. I also have a bundle of American Funds, which are front loaded, and they are doing well. The fees are low, and I am satisfied with the performance. One big advantage to me is that they include a substantial non-US investment automatically, so that I don't have to search out good funds and try to maintain a good mix. Having said that, I wouldn't buy them if I were starting out today. The front end load is a big obstacle. But I suppose with more than a million they eliminate the load, so this wouldn't be an issue for many here.

My other Mutual Fund exposure is the Fidelity FLPSX and FCNTX in my 401K. When I retire I may move these out of the 401K (Should I? I would appreciate any advice here. The funds are available at Fidelity, but I believe the Low-Priced Stocks fund is closed to new investors.)

At any rate, when I retire next year, I will draw the annuity down first. It should last three years. Then I'm undecided, but there is no rush. I may take some IRA money out and convert to Roths, as long as the tax bite is not over 15%.

At any rate, the management fees associated with VA's are a huge anchor on performance, and I expect to be needing money for the next 40 years, so a fixed 6% would be dumb in the extreme. imo.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.