lump sum [How to invest?]

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JPChevy2222
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Joined: Wed Oct 01, 2014 6:01 pm

lump sum [How to invest?]

Post by JPChevy2222 »

I'm struggling over how to invest a 500k lump sum (pension). One advisor says Jackson Annuity with a 5% guarantee (3-3.5% cost per year). Last year Jackson made 24%.
Our other advisor says Edward Jones IRA with a guarantee. That guarantee is 5%, or the market, whichever is higher. (One time 2.5% cost or .5/yr for the life of the acct.)
I have a hard time trusting anybody because I know their agenda is to make money from my money. Any advice?
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Duckie
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Re: lump sum [How to invest?]

Post by Duckie »

JPChevy2222, welcome to the forum.
JPChevy2222 wrote:Any advice?
What about a Rollover IRA at Vanguard? You could have:

(VTSAX) Vanguard Total Stock Market Index Fund Admiral Shares (0.05%)
(VTIAX) Vanguard Total International Stock Index Fund Admiral Shares (0.14%)
(VBTLX) Vanguard Total Bond Market Index Fund Admiral Shares (0.08%)
....and possibly
(VAIPX) Vanguard Inflation-Protected Securities Fund Admiral Shares (0.10%)

Or you could use one of the Target Retirement or LifeStrategy funds.
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Rick Ferri
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Re: lump sum [How to invest?]

Post by Rick Ferri »

You're advisors are salivating over a potential $25,000+ commission. That's all they see when they look at your situation. Don't go there. Listen to the good advice you'll get here.

Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.
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Trevor
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Re: lump sum [How to invest?]

Post by Trevor »

Stay far, far away from Jackson annuities. Your "adviser" is going to get a fat commission and Jackson charges ridiculously high prices (3% per year?)


As a side question, is it really necessary to have a guarantee on your investments? I'm not very experienced with exactly how they work but clearly they add a higher expense ratio.
WWJD - What Would Jack Do?
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abuss368
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Re: lump sum [How to invest?]

Post by abuss368 »

JPChevy2222 wrote:I'm struggling over how to invest a 500k lump sum (pension). One advisor says Jackson Annuity with a 5% guarantee (3-3.5% cost per year). Last year Jackson made 24%.
Our other advisor says Edward Jones IRA with a guarantee. That guarantee is 5%, or the market, whichever is higher. (One time 2.5% cost or .5/yr for the life of the acct.)
I have a hard time trusting anybody because I know their agenda is to make money from my money. Any advice?
Hi JPChevy2222,

Here is some of the best investment advice you will ever receive: Call Vanguard!

Best.
John C. Bogle: “Simplicity is the master key to financial success."
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Watty
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Re: lump sum [How to invest?]

Post by Watty »

Any advice?
For most people that want an annuity the best thing that they can do is to use the money that they would use to buy an annuity to afford be able to delay starting social security in order to get a larger social security check.
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