No. of Recommendations: 1
I have retired at 60. Prior to 2008 was getting 5+% in CD's. Have sold home, put that in a fixed indexed annuity. Taking a Rollover on my government retirement. Not another annuity!!! What is up with the minimal returns. We taxpayers have to bail everyone out and then receive a pittance in return. I believe our congress/senate needs to institute some rules regarding paying back the tax payers for the largesse deemed necessary to prop up the greedy. Does anyone else see the collusion between the law makers, banks, insurance companies and wall street? When will we finally see reasonable actions instituted to level a playing field occupied by investors as well as the money changers.
Print the post Back To Top
No. of Recommendations: 9
allhopelost writes,

I have retired at 60. Prior to 2008 was getting 5+% in CD's. Have sold home, put that in a fixed indexed annuity. Taking a Rollover on my government retirement. Not another annuity!!! What is up with the minimal returns. We taxpayers have to bail everyone out and then receive a pittance in return. I believe our congress/senate needs to institute some rules regarding paying back the tax payers for the largesse deemed necessary to prop up the greedy. Does anyone else see the collusion between the law makers, banks, insurance companies and wall street? When will we finally see reasonable actions instituted to level a playing field occupied by investors as well as the money changers.

</snip>


Few knowledgeable people would advise someone to retire on 100% fixed income investments. While CDs have had near 0% returns over the last 2 years, the stock market has doubled. That's why most successful retirees have some mix of equities and fixed income securities and rebalance between the two periodically.

intercst
Print the post Back To Top
No. of Recommendations: 0
Even the MOST conservative of retirement portfolios should have AT LEAST 20% in equities. The most aggressive no more than 80.

An excellent conservative rule of thumb is to put your age (or your spouse's and your average age) as a percentage of your fixed income assets.

We currently hold 60% in equities. We believe that stocks are better valued compared to fixed income instruments right now but we also are of an age where it's prudent to keep "a little powder dry".
Print the post Back To Top
No. of Recommendations: 0
. Does anyone else see the collusion between the law makers, banks, insurance companies and wall street?

Yes •••

When will we finally see reasonable actions instituted to level a playing field occupied by investors as well as the money changers[?]


Never.

our Challenge is to figure which way the field is tipped at any given time and use that (figure out what the Rulers want and grab their coattails)
-- Way Easier said than Done


/>:
Print the post Back To Top
No. of Recommendations: 0
...Taking a Rollover on my government retirement....


This is a huge decision and many government retirement programs are a great deal because if they are indexed for inflation. Unless you have some health issues or are sure that rolling the money out to a better option then be very careful about doing this. You may be able to do something like take half the pension and roll half of it out.


Generally any annuity other than a low cost single premium immediate annuity (which is like buying a pension) are poor to terrible choices because of all the restrictions and fees and commissions that the insurance companies load these with. In addition a major factor in determining how much an annuity pays is the current interest rates. Just like the low rate make it a generally favorable time to get a mortgage; it also makes it a generally unfavorable time to lock your money in an annuity.


It really should like you could use a good financial advisor to help you figure out what to do about the pension and annuity. An important thing to realize though is that many of the people presenting themselves as financial advisors are really sales people who get large commissions and other compensation for figuring out ways to legally charge your lots of visible and hidden fees. They should be trusted as much as you would trust a used car salesman. The exception to this is that there are "fee only" financial advisors who you pay that have what is called a "fiduciary responsibility" to do what is in your best interest. Do not be shy about asking any financial advisor to give you a written, and understandable, statement of how they are compensated. A good one will be glad to provide you this.


Greg
Print the post Back To Top
No. of Recommendations: 0
Watty56 writes,

Generally any annuity other than a low cost single premium immediate annuity (which is like buying a pension) are poor to terrible choices because of all the restrictions and fees and commissions that the insurance companies load these with. In addition a major factor in determining how much an annuity pays is the current interest rates. Just like the low rate make it a generally favorable time to get a mortgage; it also makes it a generally unfavorable time to lock your money in an annuity.

</snip>


Even a "low-cost" single premium annuity is a bad deal for most people. For someone of average mortality, about 30% of the purchase price of the annuity is lost to the insurance company's various fees and costs.

http://www.retireearlyhomepage.com/annuity_costs.html

intercst
Print the post Back To Top
No. of Recommendations: 1
"When will we finally see reasonable actions instituted to level a playing field occupied by investors as well as the money changers."

When they change the "Golden Rule*."

-drip




*He who has the gold, makes the rules.
Print the post Back To Top
No. of Recommendations: 0
To follow along Watty56's post re: fee only advisor, see my post here for more information on them:

http://boards.fool.com/i-assume-the-mm-fund-is-in-a-rollover...

op
Print the post Back To Top
Advertisement