I am a recent military widow, how much money do I allocate to a financial advisor from insurance (500 K) ?

Answer 1

First of all, let me say that I too am sorry for your loss.

In answer to your question, the short term answer to your question is "none." Anyone who starts telling you what you should do with your money without knowing your circumstances is just guessing. And a financial advisor who does that is just looking for a fee or commission. Things that need to be taken into account are your age, whether or not you are working, how much your income is, what your debts are, how much you have in other assets (house, savings, etc.). Once that's known, a decent advisor can help you find that balance between risk and growth that would serve you best.

Before you commit a nickel to a financial advisor, get yourself an elementary education in personal finance. You're going to get a lot advice here, and you won't know who to believe. Well you can believe this: no one is going to care as much about your money as you are. No one is going to watch it as closely as you are, especially someone who's got multiple accounts to look after. So get yourself a foundation, so you'll know if someone is actually giving you good advice or not. Personally, I recommend "The Only Investment Guide You'll Ever Need" by Andrew Tobias. It'll give you an overview of everything you need to know (stocks, bonds, real estate, insurance, etc.). Then you can decide if you need a deeper education in anything. Good luck!

Answer 2

Some advisors will make investments your cash very conservatively and your annual returns are not virtually as spectacular as simply taking the majority of you cash and making an investment 10% in bonds and the relaxation in an S&P Index fund or a couple of index budget. You quite do not ought to pay a lot concentration to those budget on a weekly foundation and you'll regularly be additional forward. My guide run element brought most effective approximately five% for the whole 2014 12 months however my company 401K brought 23% within the identical time interval. There had been no trades performed within the 401K. I might were additional forward if all my cash were in company backed plan. I needed to pay $6300 to the guide and not anything to Fidelity. I feel many of those advisors are too conservative due to the fact that they're terrified of losses however even as how can they justify charging those expenditures while providing so little in go back?

Answer 3

Whatever you allocate, you need to get a good understanding of finances to be sure you're dealing with good advisors. I think Kiplinger Personal Finance is a great magazine and they just had an article about choosing a financial advisor and the how they charge (either flat rate and percent of investment). Not sure what issue it was but probably in the last 3 months. Subscription is cheap...$12-18 and well worth it. It speaks to average people and not economists!

Answer 4

I'm so sorry to hear of your loss. I am so grateful for our military members and their families who make so many sacrifices for this great country.

Golly, I don't know, but don't do anything until you have a chance to think about it for a little while. CDs are safe and the interest in some places is 5 plus percent. So if you can stash your cash in a safe place for a sort period of time (a year or less) and still make a little money that's what I would do until you can find someone you really trust to be your advisor. Good luck and best wishes to you and your children.

Answer 5

The larger brokerage houses (like Fidelity, for ex.) make their own financial advisors available to you if you bank with them. I'd throw it all into a brokerage CD that pays you more than bank CDs and brokerage CDs can be sold before date of maturity if you needed the cash. Then, while your money is safely earning money, get yourself educated on financial matters. With 4 kids, you really cannot afford to lose money. Talk to several advisors and beware of the sales pressure. Ask probing questions, such as "what is the early termination cost" of x, y and z investment and if they give you a wishi-washi answer, move on.

Answer 6

I am not sure if I understand your question but if you have $500K from life insurance and you need to invest that money I suggest you to open a brokerage account and invest in the Stock Market with the help of a Portfolio Manager like myself or a Financial Advisor.

Invest the entire amount and use your half your profits to survive and reinvest the rest.

That way you will have more and more money every year.

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Answer 7

True Financial Advisers vary in price. A true Financial Adviser will not and cannot sell you anything, i.e. they do not sell Insurance Annuities, stocks, bonds, mutual funds or anything else; they only sell their Financial Service. True Financial Advisers are Professionals and like all Professionals they have at least one National Association that they belong to. The Association's web page should have general Info. about the types of questions you should ask any Professional Financial Adviser before you choose one. If you have the time, learn how to invest yourself and thus control your own financial destiny.