Hi, I am a long time lurker on this site. I am 49 and on my way to retiring in a year or 2 if all goes well. Thanks to everyone for all the information I have received from reading this site for the past 5 years or so.
While I am confident in dealing with my finances I am not secure enough to advise others. My sister has been early retired by her company at 51 and is looking for help. I went to her financial planner with her and was not particularly in agreement with his recommendations. Here is her situation.
Lump pension 500k
401k 370k
Small IRA 20k
Approx 130k in severance savings etc
company pays most of her retirement medical costs
Expenses around 4k per month
135k balance on mortgage no other debt
single, no children, not planning on leaving money to anyone, happy to be unemployed, plans to get a small job with the goal of making 20k or so per year, she has had enough of megacorp, she does not know much about finances but is learning
Her planner is pushing her into variable annuity for 500k pension rollover.
I read all the literature and still don't really understand it totally. The gist is the money is locked up until she is 62 then she starts an income stream. I see no reason for this product for her since the money is already tax deferred and she has no dependants. Does anyone see this differently?
He also wants to put the rest into loaded funds, no details on that yet. I have always used no load index funds myself. .
I would prefer it if she skipped the planner and rolled all the money into vanguard or fidelity and built a portfolio of mutual funds, bonds and cds. with an approx 50 50 allocation.
Any comments or suggestions are appreciated.
While I am confident in dealing with my finances I am not secure enough to advise others. My sister has been early retired by her company at 51 and is looking for help. I went to her financial planner with her and was not particularly in agreement with his recommendations. Here is her situation.
Lump pension 500k
401k 370k
Small IRA 20k
Approx 130k in severance savings etc
company pays most of her retirement medical costs
Expenses around 4k per month
135k balance on mortgage no other debt
single, no children, not planning on leaving money to anyone, happy to be unemployed, plans to get a small job with the goal of making 20k or so per year, she has had enough of megacorp, she does not know much about finances but is learning
Her planner is pushing her into variable annuity for 500k pension rollover.
I read all the literature and still don't really understand it totally. The gist is the money is locked up until she is 62 then she starts an income stream. I see no reason for this product for her since the money is already tax deferred and she has no dependants. Does anyone see this differently?
He also wants to put the rest into loaded funds, no details on that yet. I have always used no load index funds myself. .
I would prefer it if she skipped the planner and rolled all the money into vanguard or fidelity and built a portfolio of mutual funds, bonds and cds. with an approx 50 50 allocation.
Any comments or suggestions are appreciated.