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?
lump sum [How to invest?]
Re: lump sum [How to invest?]
JPChevy2222, welcome to the forum.
(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.
What about a Rollover IRA at Vanguard? You could have:JPChevy2222 wrote:Any advice?
(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.
- Rick Ferri
- Posts: 9708
- Joined: Mon Feb 26, 2007 10:40 am
- Location: Georgetown, TX. Twitter: @Rick_Ferri
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Re: lump sum [How to invest?]
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
Rick Ferri
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.
Re: lump sum [How to invest?]
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.
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?
- abuss368
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Re: lump sum [How to invest?]
Hi JPChevy2222,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?
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."
Re: lump sum [How to invest?]
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.Any advice?