A couple friend had their first ever meeting with a person to go over finances and investments. They met with a financial 'educator' not a 'financial advisor'. Apparently, this educator is not a CFP and only educates people about finances using a book the company that he represents uses. Looking more into the company it appears it is a Multi-Level Marketing (MLM) financial education and referral business.
The educator told my friends that at their age 67/58 and current 401k allocation that they should consider a 80/20 AA using a capital preservation strategy. The AA part is subjective the suggestion is sound.
What was surprising was that the educator mentioned they should invest in a capital preservation strategy that would 'guarantee' a minimum of 9% and a max of 12% ROI. The educator did not provide any details about the investment. That sounds like a growth type investment rather than capital preservation. Is there such an investment? I told my friends they need more details.
The educator told my friends that at their age 67/58 and current 401k allocation that they should consider a 80/20 AA using a capital preservation strategy. The AA part is subjective the suggestion is sound.
What was surprising was that the educator mentioned they should invest in a capital preservation strategy that would 'guarantee' a minimum of 9% and a max of 12% ROI. The educator did not provide any details about the investment. That sounds like a growth type investment rather than capital preservation. Is there such an investment? I told my friends they need more details.