UnThreaded | Threaded | Whole Thread (41) | Ignore Thread Prev | Next
Author: ResNullius Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: Re: Retire with 1 Mill - What to Invest In? Date: 12/6/2005 3:19 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Look, join the real world. If he wants a guaranteed 5% with someone on the hook to guarantee it, then that's an annuity, and he can kiss his principal goodbye. With an annuity, the insurance company gets to keep whatever is left when he dies. Some have limited rights of survivorship, but the principal is toast with almost all annuities. If he wants to keep his principal, he's going to have to join the rest of us in taking a litte risk, not a lot of risk, just a little. If he wants a stable 5%, he probable will have to draw down a little from his principal each year, or else invest in a more risky mix. Regardless, with a million to work with, he should be fine for life so long as he doesn't withdraw more than $40K a year, with a cost of living adjustment each year. When he dies, he should have more than his starting principal, but that's not guaranteed. Again, he must be in a good low fee, no load equity mutual fund, with a portion in fixed asset.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (41) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Saul's Investing Discussions

Why Did I Buy a Bunch of PFIE Today?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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.
Advertisement