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Author: kiwijuice Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76392  
Subject: TMFPIXY-This seams to be your page Date: 3/10/1999 5:38 PM
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Hi, I am about to recieve a lump sum pension payout from a previous employer. I'm 51 yrs.old. I wont need it for about 10 - 15 yrs. It seems to me that I wouldn't go wrong by throwing it all into the RP4 and forgetting about it other than the annual balancing. Right? Can I roll this directly into an IRA inwhich I deligate those FFour stocks without paying any taxes? I'm scared. I'm talking about 33k. Any suggestions from the pro's? Should I start it now in march or april?
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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9048 of 76392
Subject: Re: TMFPIXY-This seams to be your page Date: 3/10/1999 10:10 PM
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Hi, I am about to recieve a lump sum pension payout
from a previous employer. I'm 51 yrs.old. I wont
need it for about 10 - 15 yrs. It seems to me that I
wouldn't go wrong by throwing it all into the RP4
and forgetting about it other than the annual
balancing. Right? Can I roll this directly into an IRA
inwhich I deligate those FFour stocks without paying
any taxes? I'm scared. I'm talking about 33k. Any
suggestions from the pro's? Should I start it now in
march or april?


Pick the broker or mutual fund family you want to go with. Tell them what you want to do and set the account up now. Have your company transfer the money directly to the new company as an IRA rollover. (Direct transfer eliminates tax problems, no taxes). Tell the new company that you want the money to go into a money market account when received. You can then transfer money out into your new investments.

Are you scared about taxes? There will be none due when you roll over. If you are scared about investing you might want to do a little more homework until you feel better about investing. You have the right idea about sticking with the market, but make sure you can take the down turns.

Depending on your other assets, your diversification may not be adaquate with the PR4.

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Author: kiwijuice Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9052 of 76392
Subject: Re: TMFPIXY-This seams to be your page Date: 3/11/1999 8:23 AM
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Thanks RJM1. Yes I was worried about the taxes but scared about the investing. According to the statistics it seams like I can't go wrong over the long term. The RP4 seams to be about the best way to go. I just don't know if I truely and totally believe it. I mean 20+ % on average over long term. Why wouldn't everybody just do that and be happy? I can leave it in there for about 15 years. I just want this to be my golden years nest egg of 200k plus. Is that feasible by sticking about 8K in each of the FF stocks and ballancing once a year?

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9053 of 76392
Subject: Re: TMFPIXY-This seams to be your page Date: 3/11/1999 8:26 AM
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Kiwijuice writes:

<<Hi, I am about to recieve a lump sum pension payout from a previous employer. I'm 51 yrs.old. I wont need it for about 10 - 15 yrs. It seems to me that I wouldn't go wrong by throwing it all into the RP4 and forgetting about it other than the annual balancing. Right? Can I roll this directly into an IRA inwhich I deligate those FFour stocks without paying any taxes? I'm scared. I'm talking about 33k. Any suggestions from the pro's? Should I start it now in march or april?>>

Hey, c'mon now. I might be the official host of this board for TMF, but it's hardly "my" page as the superb responses to queries from a multitude of others amply proves. In fact, you received an excellent one from Rmj1 to your post. He told you how to transfer your distribution to an IRA so as to avoid any tax problems. Additionally, he (like I) wondered why you were scared. I sense that it's because you are about to embark on a self-directed investment strategy and you are unsure of what you should do. If so, be assured that's a normal reaction, and all of us here have gone through it. For that reason, I'm going to suggest you transfer that money to an IRA at the broker of your choice, but let it sit in an interest bearing money market account for a month or two while you get an education and clarify your goals, your knowledge, your willingness to act for yourself, and your ability to withstand the rigors of the marketplace. To that end, I suggest you take some time to do some easy reading.

I believe can do far better for yourself than most professional money managers. Provided, that is, you take some time to learn a few basic investment concepts and do some self-examination to see where you fit on the risk tolerance scale. Therefore, why not take some time now -- not later -- to be sure about what you want to do. Start first by reading The 13 Steps to Investing Foolishly, which you can access from the main, opening screen to The Motley Fool. They will suggest some important things you should consider. Then I suggest you toddle over to your local library, discount bookstore, or even here in the Fool Mart, and pick up some easily read, easily understood, inexpensive texts that will thoroughly explain how to invest in stocks using some simple systems that will take but an hour per year of your time (if you're slow) yet produce returns that put the majority of professional money managers to shame. I suggest and commend the following to you: "Beating the Dow" by O'Higgins; "The Dividend Investor" by Petty and Knowles; "The Motley Fool Investment Guide" by the Gardner brothers; "One Up on Wall Street" by Lynch; and "What Works on Wall Street" by O'Shaughnessey. All are well worth their low cost and the small investment in time it takes to read them. Get them and read them. You'll be glad you did.

While you're doing all that, also take some time to explore the various nooks and crannies of Fooldom to see what others are doing and what they're discussing. In particular, you should look over the Fools Portfolios area most carefully to gain a full understanding of the methods employed in the various strategies discussed there, especially the RP4 as that's the one that interests you. I also recommend you read my 13 Steps to Foolish Retirement Planning and my Foolish Retirement Plan Primer. Both may be found at http://www.fool.com/Retirement/Retirement.htm , and they will help give you some insight as to what you can do. In the process of all that reading, you'll gain a wealth of knowledge and information that will serve to clarify how you want to approach this very personal issue. Don't be afraid to ask a question anywhere in Fooldom. Folks around here are great about answering questions and clearing up misunderstandings.

Regards.......Pixy


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Author: WilliamLipp Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9055 of 76392
Subject: Re: TMFPIXY-This seams to be your page Date: 3/11/1999 8:55 AM
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kiwijuice Date: 3/11/99 8:23 AM Number: 9052
I can leave it in there for about 15 years. I just want this to be my golden years nest egg of 200k plus. Is that feasible by sticking about 8K in each of the FF stocks and ballancing once a year?

Growing 32K into 200K in 15 years only requires 13% growth. Based on historical results, that's very feasible. Of course there are not any guarantees.

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9059 of 76392
Subject: Re: TMFPIXY-This seams to be your page Date: 3/11/1999 9:34 AM
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Kiwijuice writes:

<<Yes I was worried about the taxes but scared about the investing. According to the statistics it seams like I can't go wrong over the long term. The RP4 seams to be about the best way to go. I just don't know if I truely and totally believe it. I mean 20+ % on average over long term. Why wouldn't everybody just do that and be happy? I can leave it in there for about 15 years. I just want this to be my golden years nest egg of 200k plus. Is that feasible by sticking about 8K in each of the FF stocks and ballancing once a year?>>

All the more reason to think of other vehicles in addition to something like the FF. While I have faith that over the long term it is a great strategy, there are no guarantees. Use it for a core, sure, but not to the exclusion of all else. Do the reading I suggested earlier, and then decide what you wish to do.

Regards….Pixy


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Author: DHatch Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9060 of 76392
Subject: Re: TMFPIXY-This seams to be your page Date: 3/11/1999 9:38 AM
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<< I'm scared. I'm talking about 33k. >>

Ok, maybe you are right to be cautious, but you need not be scared. You should invest in accordance with your own personal comfort level.

I have two thoughts which might increase your comfort level.

1. Consider not investing all at once. Keep some in a money market type account and sort of dribble it into the market over a period of time, perhaps a period of a few years.

2. The Foolish Four is good, but also consider putting some into at least one index such as SPY, DIA, and/or QQQ which should provide additional diversification and comfort.

Putting the two concepts together, you should end up with excellent long term core holdings with which you should feel both comfort and satisfaction over a long period of time.

DHatch



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Author: UUinMN Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9063 of 76392
Subject: Re: TMFPIXY-This seams to be your page Date: 3/11/1999 10:16 AM
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About the magic of compounding...

If you can get 20% per year, your 33K will grow to 200K in just 10 years. And to 500K in 15 years.



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Author: kiwijuice Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9069 of 76392
Subject: Re: TMFPIXY-This seams to be your page Date: 3/11/1999 2:01 PM
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Thankyou TMFPixy and all the rest of you guys for your wisdom. I've never been much of a gambler so it's hard for me to plop 32k down on something with the thought of possibly losing it. That's the money that I hope will make up for all my mistakes and waiting in the past. I have read and re-read the 13 steps to Foolish investing and the 13 steps to retirement planning. I have no unnecessary debts like credit cards. I do have child support, home, and car payments but I can't pay them off for a while. I have been with my present employer for 13 years now inwhich I am vested with the IMRF so that's something. I also have some diversification with a 403b annuity I started a few years ago. So, rather than turn this money over to a financial advisor, I am going to do a direct roll over into an IRA interest bearing account because Scottsdale said I would need a minimum of 100K for a money market account and I only have 33K. Hopefully it'll only be for a short time though. I 'm going to take TMFPixy's advice and immediately purchase some reading material like the Foolish Fours Book for starters. I still think I would like to put the bulk of it into the RP4, maybe 20K or so and I'll decide what to do with the rest after I read some of the literature TMFPixy mentioned. What do you think? The money will be mailed out the first of April and I'll do it at that time. I'll worry about balancing in the month of december in about 1&2/3 years. Does it sound like a plan? Any more advice? I'm always open for advice and Ideas. Thanks

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Author: UUinMN Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9070 of 76392
Subject: Re: TMFPIXY-This seams to be your page Date: 3/11/1999 2:21 PM
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<< Does it sound like a plan? >>

Absolutely. You're clearly a planner. Research, and take steps one at a time, as you're comfortable with them. You've absorbed that much already.

Live long and prosper.

Michael

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Author: WilliamLipp Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 9071 of 76392
Subject: Re: TMFPIXY-This seams to be your page Date: 3/11/1999 3:06 PM
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kiwijuice Date: 3/11/99 2:01 PM Number: 9069
I am going to do a direct roll over into an IRA interest bearing account because Scottsdale said I would need a minimum of 100K for a money market account and I only have 33K.

Sounds like some kind of mis-communication. It doesn't matter much though, because:

Hopefully it'll only be for a short time though. I 'm going to take TMFPixy's advice and immediately purchase some reading material like the Foolish Fours Book for starters. I still think I would like to put the bulk of it into the RP4, maybe 20K or so and I'll decide what to do with the rest after I read some of the literature TMFPixy mentioned. What do you think?

This sounds like a reasonable plan to get yourself moving in the right direction while still sleeping nights.


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