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Bogle_Feet

I'm sure he will try to sell me on something that will benefit him. You said it. That banker is a non-fiduciary who will be motivated to try to execute another transaction. If there's no surrender penalty then I'd get out and invest with Vanguard, E Trade or Ameritrade in a couple of broad market s...

Bogle_Feet

And he's not being truthful when he says that he has no conflicts of interest. He's only fee-BASED. That means he is still allowed to earn backdoor commissions! Also, not surprisingly, he has hatched this complex system to determine risk and blah blah blah. This way you feel compelled to pay him an ...

Bogle_Feet

Then 4-5 years ago we met with a financial advisor (who led the Financial Peace University class at our church) who sells American Funds, Ahhh the ole' affinity fleecing! Better to learn sooner than later not to drop your guard for these reasons... http://investingadvicewatchdog.com/images-new/Flee...

Bogle_Feet

Thanks sharing your feedback. As I mentioned in the 1st post, I'm currently ignorant in this area, so I'd like to hear from the experienced/knowledgeable folks on the forum. Would you please elaborate your comment? Especially, a comparison with some numbers and rough calculations might be helpful. ...

Bogle_Feet

How much to have before you can retire? Learn about the "4% spending rule". Fee-only advisors are the only ones who can be trusted. Even fee-based fiduciaries may try to sell you annuities or actively managed mutual funds. Hopefully Vanguard can answer your questions. Or use JustAnswer.com...

Bogle_Feet

I've never seen such a mess of funds. Looks like you went to an asset manager who (of course) aimed to make investing seem complex and complicated in order to justify his fee and keep you in need of him as he charges you year after year. Investing is simple. Just invest in a total bond market index ...

Bogle_Feet

This is the only one you need... VBTLX (Total Bond Market Index). Totally bond diversified. It's the financial services industry that tries to confuse people into thinking that investing is complicated and that you need this, that and the other thing. One total bond market index fund (with an S&...

Bogle_Feet

Yes "dump" it all in bonds and stocks. You could look at anyone who is fully invested now as someone who has "dumped it all" in bonds and stocks. Waiting is just putting off risk. No risk -- no reward. You HAVE to invest. And nobody knows when the next market drop is. If you're w...

Bogle_Feet

Why real estate and all of the hassle and higher taxes that comes with it, not to mention the risk of putting it all in one investment in one region? Why not stocks and bonds?

Bogle_Feet

If he has already annuitized the contract then I believe he's stuck in that annuity for life. Assuming the surrender period has expired and assuming he actually CAN get out, I would then look to get OUT of that annuity in a tax efficient manner. Since gains are taxed at the higher ordinary income ta...

Bogle_Feet

What should they do with their money? Their friends have been trying to tell them about annuties. If annuities are an option, which type would be the best? NO NO NO! Avoid annuities. http://investingadvicewatchdog.com/annuity-1.html Someone suggested a SPIA. Very poor choice too! https://www.youtub...

Bogle_Feet

Jim Cramer recommends the same thing: Younger than 30 - No reason to own bonds In your 30's - 10% - 20% bonds In your 40's - 20% - 30% bonds In your 50's - 30% - 40% bonds 60 to retirement - 40% - 50% bonds Ask yourself, will stocks or bonds perform better 35 years from now? Keep in mind that stocks...

Bogle_Feet

(Yes feeling lazy to google :oops: or easy to type or helps others as well ) if I have Fidelity account, how does, Fidelity, makes money when I hold all Vanguard funds and ETFs, in a buy and hold fashion, with minimal transaction fees. The same way that E Trade and AmeriTrade make money... Executin...

Bogle_Feet

Pick an S&P 500 index fund and a total bond market index fund. Simple. An approximation of how much to put in one versus the other? Subtract their age from 120 and that equals the stock portion. Put the rest in bonds minus money needed for the next year or so. Personally I invest everything minu...

Bogle_Feet

nedsaid wrote:If I want a Single Premium Immediate Annuity, I will buy in retirement.

You might want to study up on these products to before you put money into them. Like deciding that taking a vacation now is more important than having food and shelter later.

https://www.youtube.com/watch?v=QDUbQeZvJ9g

Bogle_Feet

Variable annuities along with index annuities are 2 of the most inferior financial products on earth. Get out and stop the high fees and stop the ordinary income taxes on future gains. Also take Mr Advisor's name off the contract so that he doesn't continue to earn his trailer commissions quarter af...

Bogle_Feet

I was speaking with our company's CFP (that's correct, we actually have a staff CFP to help us without our personal finance), and we were discussing options for how to place my fixed income percentage. He had suggested to me to place my fixed income in a fixed value (annuity) account as an alternat...

Bogle_Feet

I was talking with a financial advisor at AXA and they recommended I purchase a variable universal life insurance policy as an investment vehicle. Who would be the right person to buy such a product? That "financial advisor" is nothing more than a COMMISSION-HUNGRY salesman who is trying ...

Bogle_Feet

“If your advisor thinks he can pick winning stocks, choose winning actively managed mutual funds, or time the market -- steer clear!” -- Whitecoat Investor In other words stick with index funds, which are passively managed. Investing is simple. Own 2 index funds -- total bond market index and total...

Bogle_Feet

Looks like an asset manager created this mix in order to make you think that investing is complicated and so that you'll continue to pay them 1% per year. Keep it simple... a total bond market index fund and an S&P 500 index fund. You're very diversified with just 2 funds. https://www.merriam-we...

Bogle_Feet

Single Premium Immediate Annuities are about the only annuities recommended on the forum. Consideration might be given to so called longevity insurance. All such products have drawbacks and are not for everyone but they are worthy of consideration particularly with the disappearance of the employer...

Bogle_Feet

The notion of "guaranteed income for life" is such a misnomer. It's actually guaranteed INADEQUATE income later in life -- because you insisted on having more income earlier in life (with an annuity). Here's an example of how today's SPIA fails the test of time versus a traditional 28% sto...

Bogle_Feet

BND or AGG, both represent the Barclay's aggregate bond index. Average duration about 5.7 years or so.

Bogle_Feet

We were considering putting 25K into a Nationwide New heights 12 for growth potential, but have wavered! (Although growth looked potentially good?) This is an index annuity. Bad bad bad. Expect returns in the 1% to 3% range if held until the surrender penalty expires. This annuity has a massive 12 ...

Bogle_Feet

/am considering an immediate annuity. Immediate annuities do not keep pace with inflation. The growth of your money stops with these products. That's why they leave you in poverty later in life. They tease with a high income rate that eventually gets dwarfed by inflation. Invest in bond and stock i...

Bogle_Feet

Fire the so-called "advisor" who sold you that annuity.
https://www.youtube.com/watch?v=ZulYOxPaoA8

Bogle_Feet

FNITX Front load: 3.5% Expense ratio: 1.14% VTSAX Front load: none Expense ratio: 0.04% How do I compare these two funds? This is a no brainer. The answer is in your post. Stop investing in expensive actively managed mutual funds. Invest in index funds. http://investingadvicewatchdog.com/images/cha...

Bogle_Feet

silverskates wrote:then the market crashes and wipes out 25%+ of what they have. What do they do?

Ever heard of bonds? If you can't stomach a 25% crash then you diversify into bonds.
Through diversification and a spending strategy (of probably 3.3%) history says that you probably will not run out of money.

Bogle_Feet

He advised that I roll the entire portfolio into a fee-based one called Guided Solutions before Fri's rule change. LOL! And it's not even fee-ONLY. It's fee-BASED, meaning that EJ is still legally allowed to earn backdoor commissions AKA double dipping. The financial services industry is such a big...

Bogle_Feet

First and foremost this thread is from 2016, but for whomever might be trying to learn from this thread in the future, fixed income payments for life will leave you in POVERTY later in life. When you do the math you realize they are a bad deal even during the worst of times. https://www.youtube.com/...

Bogle_Feet

to take care of all my financial needs Avoid commission-based advisors and firms like EJ. On an important side note, what do you expect to get out of an advisor anyway? For most people this means learning about the 4% spending rule (less is better if possible) and deciding on a stock/bond allocatio...

Bogle_Feet

Investing is simple. The most important thing is to decide on a bond / stock allocation ratio. Then invest in 2 index funds like SPY and VOO. For help on deciding on a bond / stock allocation ratio use these sites. Just ignore the wide array of funds that these robo advisors may suggest. Again, inve...

Bogle_Feet

Ahhh promissory notes!
http://www.investingadvicewatchdog.com/other.html

Bogle_Feet

I had never received an invitation to one of those seminars where they feed you good food until now. They actually sent the invite to my deceased dog. Anyway, it was an okay restaurant, not one of those expensive steak houses. So this guy was talking about Fixed Indexed Annuity, he said it was good...

Bogle_Feet

Nothing you can do about the spread other than to place limit orders and to avoid investing in scarcely traded securities. Just invest in index funds like SPY and BND or AGG. Investing is simple.

Bogle_Feet

Yes. Sitting on 500K of cash will only get you to the poorhouse eventually. You HAVE to invest if you decide not to pay off the loan. At age 50 most folks would be positioned in about 70% stocks / 30% bonds. Just invest in a couple of index funds like SPY and BND. If you are less tolerant of stock m...

Bogle_Feet

Should I invest them into the stock market? If so, which stock market should I invest them to? Invest in the NYSE stock market. :mrgreen: Nobody can tell you if stock X is going to perform better than stock Y. Stocks and the market in general are always fairly priced at any given moment. You don't ...

Bogle_Feet

This is what happens when you go to "free" advisors. You receive the most expensive "free advice" ever! In the future be sure to just invest in a couple of index funds (total bond and total stock or S&P 500). FACTS: It takes 5-15 years for the typical whole life policy just t...

Bogle_Feet

Are there any particular things to watch out for in a deal like this? Too numerous to list! And how many episodes of American Greed have we seen where the thing looked squeaky clean? Claudio Osorio was named was named “Entrepreneur of the Year” by Ernst & Young in 1997. Agape World was on Entre...

Bogle_Feet

He wasn't pushing too hard as a salesman, but of course he did mention the .89% annual fee they charge for assets under management. And you fell for his passive aggressive approach to sales. Did he mention that 0.89% will cost you 8.6% after 10 years? That it will cost you 16.5% after 20 years? And...

Bogle_Feet

to reduce risk.... Things I've considered: Real estate / vacation rental investing (buying something I could rent out and that I think will appreciate) Real estate crowdfunding (I've invested a very small amount with Fundrise) Real estate is riskier than commodities, small & mid cap stocks, int...

Bogle_Feet

46% of S&P 500 index revenue comes from outside the US.

Bogle_Feet

"Index annuities are a danger to your financial health." -- Clark Howard "[The insurance company] is not playing Santa Claus. Even with interest rates near record lows, CDs may still do better than indexed annuities". -- William Reichenstein "[Indexed annuities] carry exorbi...

Bogle_Feet

BND or AGG --- Barclays U.S. Aggregate bond index

Bogle_Feet

They have portfolio which has a projected annual return rate of 10.1% with a standard deviation of 10%. It invests in stock, bond, and real estate ETFs and low-cost index funds “If your advisor thinks he can pick winning stocks, choose winning actively managed mutual funds , or time the market -- s...

Bogle_Feet

First question: Did this advisor agree in writing to fiduciary duty to you? Is this a fee-only fiduciary or a fee- based fiduciary? Did you pay them a fee for their services? If not then you are definitely working with only a fee- based advisor. That leaves the door open for conflicts of interest. T...

Bogle_Feet

You will never get a 5% ROI with an immediate annuity. Live to your life expectacy and your annualized ROI will be about zero. Live to be 90 and you might get 2.3%. Live to be 95 and you might get 3% ROI. Live to be 100 and you'd get about 3.4%. http://investingadvicewatchdog.com/immediate-annuities...

Bogle_Feet

If this were your mother, how would you advise her? Follow the FA’s advice (whom she trusts)? Is waiting a year or two until her picture becomes more clear the correct move? Should she consider a Single Premium Immediate Annuity or something like a Vanguard Managed Payout Fund? Or, perhaps, somethi...

Bogle_Feet

Lesson learned. Never get money advice from a commission-based "advisor". "You do not purchase insurance for investment purposes." - Ric Edelman FACTS: It takes 5-15 years for the typical whole life policy just to break even. 33% of policy holders have dumped their policy after 5...

Bogle_Feet

aqan wrote: @Bogle_Feet - is there an ETF/MF you can suggest that implements this magic 72/28 formula?

A total bond market index fund like BND or AGG
And an S&P 500 index fund like SPY

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