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Thanks all
Old 08-20-2008, 08:29 AM   #21
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Thanks all

I appreciate everyone who provided a response - your feedback was VERY helpful.

I am happy to report that my parents are not going to put this money into an annuity and when they told the advisor that she said that this was a well thought out decision and moved on...she didn't push the issue but just wanted them to know it was an option.

They will now put the money into mutual funds - most of which are already allocated from their existing portfolio. The funds are American Funds. I will have my parents ask for a comparison between the recommended American Funds and an alternative Vanguard recommendation.
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Old 08-24-2008, 05:10 PM   #22
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If they are retiring in 5 years, be sure they have the proper asset allocation between fixed income and equities. You (and they) really, really need to read Bernstein's Four Pillars.
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Old 08-24-2008, 05:14 PM   #23
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I can save you most of the reading...

Book Report - Four Pillars of Investing

Man I've been posting here a long time... :
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Annuity
Old 08-26-2008, 08:47 PM   #24
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Annuity

If your parents are uneasy about what to do.... DONT listen to a "commission" advisor !! They are worried about their money not yours. Annuities are SOLD not bought. Annuities pay the highest comm. to the salesperson, no wonder they push them !!! You have to find a FEE ONLY advisor for real, unbiased advice for what is best for your situation !!
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Old 08-26-2008, 09:14 PM   #25
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Quote:
Originally Posted by gqlefty View Post
If your parents are uneasy about what to do.... DONT listen to a "commission" advisor !! They are worried about their money not yours. Annuities are SOLD not bought. Annuities pay the highest comm. to the salesperson, no wonder they push them !!! You have to find a FEE ONLY advisor for real, unbiased advice for what is best for your situation !!
Might you be one of these excellent fellows?
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Old 08-27-2008, 09:04 AM   #26
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TennisFan, why not introduce this site to your parents? They might have concerns you're not aware of, or that they might not want to discuss with you. Tell them they're more than welcome to join us!
Good idea........

Quote:
PS--re your statement, "The advisor says that there is a 2% upfront fee and she gets a standard 1% of the portfolio." Does this mean every year the advisor "earns" $3,000 against the $300K annuity besides whatever portion she gets of the "2% upfront fee"?
No..............
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This Thread is USELESS without pics.........:)
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Old 08-27-2008, 09:05 AM   #27
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Originally Posted by gqlefty View Post
If your parents are uneasy about what to do.... DONT listen to a "commission" advisor !! They are worried about their money not yours. Annuities are SOLD not bought. Annuities pay the highest comm. to the salesperson, no wonder they push them !!! You have to find a FEE ONLY advisor for real, unbiased advice for what is best for your situation !!
Is this Suze Orman??
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Old 08-27-2008, 09:08 AM   #28
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Originally Posted by TennisFan View Post
They will now put the money into mutual funds - most of which are already allocated from their existing portfolio. The funds are American Funds. I will have my parents ask for a comparison between the recommended American Funds and an alternative Vanguard recommendation.
American Funds are only distributed through advisors. As much as folks on here will badger me about it, American Funds is the ONLY mutual fund company other than Vanguard that John Bogle thinks does a nice job..........
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No, I'm not a Fee only advisor
Old 08-27-2008, 10:30 AM   #29
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No, I'm not a Fee only advisor

For Fee only advisors go to www.napfa.org They have a fiuduciary responsibilty to always put the clients interest first. Their only compensation is from the client for the advice they give.
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Old 08-27-2008, 10:54 AM   #30
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"No, I'm not a Fee only advisor"

gqlefty, one reason you're getting questioned about who/what you are is you waded into this discussion (and the board) without introducing yourself. Nothing much on your member profile either.

You might consider going over to the "Hi, I am..." forum and providing us a little information: Retirement plans? Pension? Investment strategy? Etc....
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Old 08-27-2008, 11:09 AM   #31
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OK

My bad...
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