Retirement Account Question

[WhatsHisNuts]

I have a guy working for me that has a lot of his money tied up in Annuities. He's 63, single, and is looking to retire next year. I don't know what kind of money he has in his account, but he is currently using Lincoln Financial. I studied some Personal Finance in my MBA program, but we didn't spend much time on them. I would think he'd be better off with some traditional mutual funds, but I'm a little more versed in my situation (35, married, dual income) and I don't want to steer this guy wrong.

Any thoughts would be appreciated. Especially, if you know what you're talking about, lol.

 

[THE KOD]

I have a guy working for me that has a lot of his money tied up in Annuities. He's 63, single, and is looking to retire next year. I don't know what kind of money he has in his account, but he is currently using Lincoln Financial. I studied some Personal Finance in my MBA program, but we didn't spend much time on them. I would think he'd be better off with some traditional mutual funds, but I'm a little more versed in my situation (35, married, dual income) and I don't want to steer this guy wrong.

Any thoughts would be appreciated. Especially, if you know what you're talking about, lol.

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gm

my advise would be to point him to his bank financial person. Too many hard feelings could come from trying to help with that kind of question.

:0074

 

[WhatsHisNuts]

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gm

my advise would be to point him to his bank financial person. Too many hard feelings could come from trying to help with that kind of question.

:0074

I understand what you are saying, but I think those people are out for themselves. Those guys are out to make money for themselves first, you second. We have some bright guys here, I'd like to hear what they think.

 

[Morris]

I have a guy working for me that has a lot of his money tied up in Annuities. He's 63, single, and is looking to retire next year. I don't know what kind of money he has in his account, but he is currently using Lincoln Financial. I studied some Personal Finance in my MBA program, but we didn't spend much time on them. I would think he'd be better off with some traditional mutual funds, but I'm a little more versed in my situation (35, married, dual income) and I don't want to steer this guy wrong.

Any thoughts would be appreciated. Especially, if you know what you're talking about, lol.

What Scott said and mutual funds haven't actually been out performing for the last ten years.

He may have a ton of money and be quite comfortable with the position he's in.

 

[WhatsHisNuts]

What Scott said and mutual funds haven't actually been out performing for the last ten years.

He may have a ton of money and be quite comfortable with the position he's in.

He's not loaded and he's not all that comfortable with the position he's in. He's been asking me about this stuff, and I told him I'd ask around because I don't know much about annuities.

 

[Skulnik]

Gmroz, give him this link, Clark Howard will tell him to stear clear of banks when talking retirement accounts, I watch his show on the weekends to catch something new.

:0074


http://www.clarkhoward.com/

 

[Doughboy]

If you can find out what the guarantees are in the annuities, that would be helpful. How long ago he bought the policies also.

If he bought them more than 3-4 years ago, he might have some very nice guarantees, like 5% income for life. Find out also if he has to wait until 65 to start withdrawing and percentages of withdrawal according to age band.

It is hard to say whether or not he should keep them until we know a little more.

As a financial advisor, I sell very few annuities. Just like any investment, there is a class of investor out there that they fit. I almost barely buy mutual funds anymore for clients unless they are putting money away on a consistent dollar cost averaging basis. If he needs income, take a look at ETF connect for many good ideas for sector ETF's like muni's, floating rate funds, preferreds, etc. Chances are he can build a very diversified portfolio that will give him a predictible monthly income that will hold up fairly well as the market fluctuates.

 

[WhatsHisNuts]

If you can find out what the guarantees are in the annuities, that would be helpful. How long ago he bought the policies also.

If he bought them more than 3-4 years ago, he might have some very nice guarantees, like 5% income for life. Find out also if he has to wait until 65 to start withdrawing and percentages of withdrawal according to age band.

It is hard to say whether or not he should keep them until we know a little more.

As a financial advisor, I sell very few annuities. Just like any investment, there is a class of investor out there that they fit. I almost barely buy mutual funds anymore for clients unless they are putting money away on a consistent dollar cost averaging basis. If he needs income, take a look at ETF connect for many good ideas for sector ETF's like muni's, floating rate funds, preferreds, etc. Chances are he can build a very diversified portfolio that will give him a predictible monthly income that will hold up fairly well as the market fluctuates.

I'll ask him about your first couple questions when I see him today.

 

[WhatsHisNuts]

Gmroz, give him this link, Clark Howard will tell him to stear clear of banks when talking retirement accounts, I watch his show on the weekends to catch something new.

:0074


http://www.clarkhoward.com/

I see this guy has a podcast. I'm going to check it out.

Thanks.