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Author: allhopelost Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: investment choices Date: 6/1/2011 10:51 PM
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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.
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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69084 of 74759
Subject: Re: investment choices Date: 6/1/2011 11:40 PM
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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

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Author: temsike Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69087 of 74759
Subject: Re: investment choices Date: 6/2/2011 1:05 AM
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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".

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Author: 0x6a74 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: 69088 of 74759
Subject: Re: investment choices Date: 6/2/2011 1:07 AM
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. 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


/>:

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Author: Watty56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69090 of 74759
Subject: Re: investment choices Date: 6/2/2011 11:09 AM
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...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

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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69091 of 74759
Subject: Re: investment choices Date: 6/2/2011 1:07 PM
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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

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Author: drippinfool Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69093 of 74759
Subject: Re: investment choices Date: 6/2/2011 1:23 PM
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"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.

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Author: op456op Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69106 of 74759
Subject: Re: investment choices Date: 6/2/2011 9:40 PM
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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

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