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Choosing a financial invester!
Old 01-07-2012, 06:16 PM   #1
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Choosing a financial invester!

I,ve recently taken an early retirement with a SS disabilty. Since I have done that I can get into my annuity fund early without penalty. I am 58 years old. I have approx. $870K that was not taxed yet that I would like to have it put into a different plan that would give me decent income yearly. I have been shopping around a little and have spoken to several advisors,now it,s time to choose and quite frankly I am very nervous about picking one of them since these monies will be part of my yearly income. I have spoken to Fisher Investments who tell me historically they have done very well. In trying to find some reviews of them I haven,t had much luck.They seem very aggressive? I have also spoken to United Asset Strategies based on Long Island N.Y. Does anyone have any feedback good or bad on these firms. Thanks for looking!!! Lacawac
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Old 01-07-2012, 06:25 PM   #2
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I would do a lot of reading before putting any money with any financial adviser. You can manage your funds yourself, with relative ease, IMHO.
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Old 01-07-2012, 06:26 PM   #3
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Some of the posts in response to your previous thread here

Early Retirement/Disability

gave you some other ideas of what you might do, though you didn't respond to them.

Did these advisors tell you who is paying them to handle your money? And how much? I would be pretty nervous about choosing one of these advisors as well, since I would be concerned that I would be funding THEIR retirement as much as or more than my own.
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Old 01-07-2012, 06:28 PM   #4
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Old 01-07-2012, 06:51 PM   #5
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If you need to have a financial advisor choose one that is fee only. IMHO any of the others will be taking a good portion of your money. If your SWR is 4% and your financial advisor is taking 2% you have a 50% partner and they have no investment. They are playing with your money.
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Old 01-07-2012, 09:06 PM   #6
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If you are looking specifically for an annuity, get some advice here and buy one yourself (or more likely several spread over a few years). I doubt someone like Fisher would be interested in that. They would rather manage your portfolio.

Try a fee-only planner in your area for a one-time planning session to recommend something that makes sense to you.
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Old 01-07-2012, 09:34 PM   #7
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Check out Vanguard. Call them and they will help you.
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Old 01-07-2012, 11:22 PM   #8
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Quote:
Originally Posted by lacawac View Post
I,ve recently taken an early retirement with a SS disabilty. Since I have done that I can get into my annuity fund early without penalty.
Why do you want to "get into your annuity fund"? It will presumably pay you a lifetime income.
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Old 01-08-2012, 04:38 AM   #9
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Somebody wants your money. Bad.

Run.
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Old 01-08-2012, 06:27 AM   #10
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If you open an account at Vanguard and put your money into a couple of asset allocation funds you should do at least as good as the advisors would, but without the fees. Vanguard has Wellesley and Wellington (previously recommended to you) and other options are FPA Cresent, Dodge and Cox balanced, Pimco global multi-asset.
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Old 01-08-2012, 10:09 AM   #11
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Call Vanguard, today!!!!!

They'll analyse your funds, give you options and charge very little for the service. Most lose income because of fees and taxes. I trust Vanguard, Fidelity almost as much and others may suggest low cost financial firms as well.

If you can, put your money in balanced funds, live off of dividends and enjoy all your money instead of sharing 1 to 2% a year with your financial advisers. And, years ago, I had an experience where the financial adviser that sold a long term annuity investment, 20 years, was paid 87% of the 1st years premium for the sale. Hopefully, that kind of investment doesn't exist today but you really have to be carefu whenever anyone starts talking annuitiesl. Again, Vanguard or Fidelity can recommend them if you want.

So, I'm with Vanguard, if I can't handle my money, I can turn management over to them for around 50 basis points, a 1/2 % a year and they'll manage it for me.

To me the key word is "trust". And, I haven't found many that aren't after your money, rather than have your best interests at heart.

If you need an advisor other than Vanguard, go to some local semi retirement group, ask everyone in the group who has an advisor on a hourly fee only basis and doesn't get a commission off of anything he/she recommends. Then discuss whatever you found out at Vanguard, or anyplace else and make your decision.

Finally, if you have a trusted buddy or family member, have them along when you talk to Vanguard and when you talk to a fee only financial advisor......betweeen the two of you, you'll have a good shot at making a great decision.

Good luck to you, you have a nice bundle and you're lucky to be able to enjoy it!!!!
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Old 01-08-2012, 10:17 AM   #12
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Call Vanguard, today!!!!!

They'll analyse your funds, give you options and charge very little for the service. Most lose income because of fees and taxes. I trust Vanguard, Fidelity almost as much and others may suggest low cost financial firms as well.

If you can, put your money in balanced funds, live off of dividends and enjoy all your money instead of sharing 1 to 2% a year with your financial advisers. And, years ago, I had an experience where the financial adviser that sold a long term annuity investment, 20 years, was paid 87% of the 1st years premium for the sale. Hopefully, that kind of investment doesn't exist today but you really have to be carefu whenever anyone starts talking annuitiesl. Again, Vanguard or Fidelity can recommend them if you want.

So, I'm with Vanguard, if I can't handle my money, I can turn management over to them for around 50 basis points, a 1/2 % a year and they'll manage it for me.

To me the key word is "trust". And, I haven't found many that aren't after your money, rather than have your best interests at heart.

If you need an advisor other than Vanguard, go to some local semi retirement group, ask everyone in the group who has an advisor on a hourly fee only basis and doesn't get a commission off of anything he/she recommends. Then discuss whatever you found out at Vanguard, or anyplace else and make your decision.

Finally, if you have a trusted buddy or family member, have them along when you talk to Vanguard and when you talk to a fee only financial advisor......betweeen the two of you, you'll have a good shot at making a great decision.

Good luck to you, you have a nice bundle and you're lucky to be able to enjoy it!!!!
Good advice. For a fee (reasonable), they will prepare a financial plan for you and recommend specific investments. If you want you can post the recommendations here to get feedback from members. Call them 877-662-7447

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Old 01-08-2012, 10:52 AM   #13
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I like the advice I get from Vanguard and Edward Jones. I have not heard about the firms you mention in your post.
Quote:
Originally Posted by lacawac View Post
I,ve recently taken an early retirement with a SS disabilty. Since I have done that I can get into my annuity fund early without penalty.
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Old 01-08-2012, 11:03 AM   #14
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Call Vanguard, today!!!!!

They'll analyse your funds, give you options and charge very little for the service. Most lose income because of fees and taxes. I trust Vanguard, Fidelity almost as much and others may suggest low cost financial firms as well.
Vanguard and Fidelity are both excellent. One caution- I don't think this has become an issue with Vanguard yet, but Fidelity has given their retail representatives "goals" that are not always consistent with client needs. For example, they now need to sell a certain amount of managed money, life insurance and annuities. They say their compensation is not affected, but in reality if they don't meet their sales goals, they are put on an "action plan" and will eventually be shown the door. Our fee-only firm recently hired one of these Fidelity reps b/c he could no longer work there in good conscience. Big win for us, big loss for them. I have money with Fidelity but I don't use them for advice.

My only other thought on the subject- a fixed annuity would generate steady income for you but interest rates are so low that now is not a good time to make such a purchase. Also, the younger you are, the lower the income. You can duplicate the benefits of a fixed annuity and save money using CD ladders. A much better solution if you're ok with a small amount of volatility is MichaelB's- simply own low cost conservative or moderate allocation mutual funds like Vanguard Wellesley or Wellington. Good luck!
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Old 01-09-2012, 08:34 PM   #15
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Good advice. For a fee (reasonable), they will prepare a financial plan for you and recommend specific investments. If you want you can post the recommendations here to get feedback from members. Call them 877-662-7447
Again , thanks I called them today and spoke to someone for a little while, If I understood them correctly I believe they said the Wellesley fund did 9.63% last year & the Wellington did 3.85%.They made it sound fairly easy. If those numbers are true it seems very good to me.
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Old 01-09-2012, 08:44 PM   #16
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Again , thanks I called them today and spoke to someone for a little while, If I understood them correctly I believe they said the Wellesley fund did 9.63% last year & the Wellington did 3.85%.They made it sound fairly easy. If those numbers are true it seems very good to me.
Unless you are putting your money in CD's don't be mislead by thinking that they will earn the same amount in 2012. It could be more or it could be less.
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Old 01-10-2012, 05:28 AM   #17
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Be aware of the risk, those funds can also decline in value. What they offer is simplicity, good management, and low fees.
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Old 01-10-2012, 05:44 AM   #18
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Again , thanks I called them today and spoke to someone for a little while, If I understood them correctly I believe they said the Wellesley fund did 9.63% last year & the Wellington did 3.85%.They made it sound fairly easy. If those numbers are true it seems very good to me.
On-going advice would help you, also. I use Vanguard.

You need to start with an analysis of how much income you need each year. Then an advisor would work with you to understand how a selection of funds or other investments would provide that income each year, with as little risk as possible.

Of all the online investing forums I have read, the one that I go back to for thorough answers is Morningstar Portfolio Design and Management. Very friendly folks.
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Old 01-10-2012, 06:52 AM   #19
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If you want an advisor but low fees you could look into DFA.........
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Old 01-10-2012, 07:17 AM   #20
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Again , thanks I called them today and spoke to someone for a little while, If I understood them correctly I believe they said the Wellesley fund did 9.63% last year & the Wellington did 3.85%.They made it sound fairly easy. If those numbers are true it seems very good to me.
I'll reiterate my comment. Why do you want to "get at your annuity"? Who is the annuity with and what is it paying? It might be a viable option to fund your retirement.

Before you go cashing in the annuity, make sure you understand all the consequences. It isn't rocket science to manage your money at companies like Vanguard, but you sound as if you are just starting so don't go paying anything to advisors just yet until you understand exactly what they are telling you.
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