I’m 68, retired in March and my ex employeer suggested that I contact this financial advisor to get some ideas and help about rolling over my 401K. He suggests combining my 401k and my IRA and putting them into " ing " with a guaranteed 7% and taking an inheritance (approx. the same amount as the ira and 401k) and putting it into an actively managed plan which charges around 2.5% instead of letting it languish or drop in the current with Wash Mutual and Fidelity. I expressed interest in some growth, assessability, and the possibility of leaving an inheritance. Financial advisors opinions would be appreciated. I have no debt besides 0 monthly mtg. payment, I owe 60K on the house.

 

  • enoriverbend 3:10 am on October 8, 2009

    The "ing" plan sounds like it’s probably an annuity. Some annuities are terrible deals, and others — particularly immediate annuities — can be a fair deal for retirees if you know what you are getting into. We’d need a lot more detail to even guess which category this one falls into.

    Like bud68, I think the active management for 2.5% is a ridiculously high fee and would really suspect anyone suggesting that.

    It sounds like you really ought to educate yourself better on investments. Nobody but you is going to look out for your own best interests, and there are — sad to say — financial advisors that suggest products based on fees for them rather than suitability for you.

    If you don’t want to take the time to do that, at least find a better advisor. If there is a Fidelity office near you, they will give you straight advice; Vanguard or TIAA/CREF are good choices as well.

  • bud68 3:10 am on October 8, 2009

    Be very skeptical. Not sure what the "ING" investment is and how "guaranteed" that 7% is (what is the risk to principal??), but 2.5% to "actively manage" the other account is horrible. You can do better yourself with no-load mutual funds.

  • Kiplinger Answers 3:10 am on October 8, 2009

    Here are some recent stories from Kiplinger’s Personal Finance that might help you:
    New Ways to Tap Savings http://www.kiplinger.com/magazine/archives/2008/09/retirement_income_funds.html
    An Income Stream to Last a Lifetime http://www.kiplinger.com/magazine/archives/2008/09/make_your_own_pension_annuity.html
    Create a Retirement Paycheck http://www.kiplinger.com/features/archives/2008/06/krr_create_a_retirement_paycheck.html

  • raysor 3:10 am on October 8, 2009

    Again I would be sceptical of the financial advisor. Work out roughly how much you need to live and service your mortgage. 60K mortgage at 68, is that usual in the States? I don’t know about 401k; is that like our pensions? A fixed income for he rest of your life? 7% cannot be guaranteed, can it? Unless it eats into your capital.If you put yor savings into safe fixed interest bonds (maybe index linked) giving you say 5% will this be enough? I would get a few opinions from different people (who are not relying on you to fund their lifestyle with your commission). Start off thinking of a return somewhere around the Fed rate.

  • Potato Head 3:10 am on October 8, 2009

    When an "advisor" directs you into an annuity it is for the sake of making a big commission. Annuities are one of the most complained about "investment" vehicles and are often used to take advantage of seniors. The idea of putting money into a actively managed plan with charges of 2.5% is absolutely ridiculous and shows your "advisor" is an dirty crook.

    Contact the Vanguard Group and they will take care of you. They are the lowest cost investment family on the planet. If you currently have the money in a Washington Mutual mutual fund, I guarantee you that you are paying high fees in the background. Banks are crooks. Vanguard probably has a similar fund for 1/10 the fees. As an example, Vanguard offers a Target Retirement Income Fund with a fee of 0.19%. Vanguard also offers annuities.

  • bgrace12 3:10 am on October 8, 2009

    Hi,

    2.5% is too much. And a guaranteed 7% smells fishy.
    I just read a post on http://www.moneyrec.com and it is someone looking for a mf paying 7%. Somebody recommends Vanguard also. At the very least, they charge the lowest fees (Fidelity is pretty competitive though) at their best, they are honest and committed to the shareholder.

    Best of Luck

    Grace

  • kpsingh 2:23 am on December 18, 2009

    hi this is kpsingh please call me for investment becouse i m working with best investment company in india call me on 9866340620

  • kpsingh 2:23 am on December 18, 2009

    hi this is kpsingh please call me for investment with healthy returnsbecouse i m working with best investment company in india call me on 9866340620