make a decision as to where to invest the money for my retirement. I am 55 years old and I am not too knowledgeable about money investments. Do i put it in a Roth or CD's or an IRA or do i put it in mutual funds or an annunity? please someone advise.
2006-12-20 23:54:42 · 11 answers · asked by pure_24kt 2 in Business & Finance ➔ Investing
As others have suggested you really should seek advice from a financial advisor at a bank. What is best for you is dependent on your circumstances. For example:
1. Is the money from his 401k? If so, you should roll it into an IRA to avoid tax consequences.
2. How much of the money will you need to live on? Can you live on the interest portion alone or will you be needing a portion of the principal as well?
3. How close to retirement are you yourself? What other sources of income will you have at that time?
4. Are you a saver or a spender? Is there any danger that having the money readily available to you, that you would be prone to blow through it foolishly?
5. How tolerant to risk are you? Would you be uncomfortable with the risks of the stock market?
A good financial advisor should be asking you these questions and more. Beware if they immediately want to sell you a variable annuity or anything else that generates a commission. Don't rush into anything. You can always initially put the money into the money market (approx 5% return) and then decide where to invest it later on. You can do this whether you are eligible to roll it into an IRA or not.
The $100,000 would generate approx $600 a month for life if you choose an "immediate" fixed annuity. This may be a good choice if you need the certainty of a low risk steady monthly income and don't think you might ever need a portion of the principal.
If you don't mind a little risk and want to retain control over the money then investing in a mix of quality mutual funds, bonds and CD's would be a good option. Not over 60% in stock funds. If you go this route consider Vanguard which has low expenses. Perhaps one of their life cycle funds might be appropriate if you are not too knowledgeable about investments.
Again, be cautious that whatever financial advisor you choose doesn't just try to sell you variable annuities. If they do, find someone else.
Good luck!
2006-12-21 01:09:39 · answer #1 · answered by rkoblitz 6 · 0⤊ 0⤋
Definitly do not go to a bank. Ask around. Get recommendations and a referral to an advisor that has been in the business for an extended amount of time. Look for a designation, CFP, ChFC, CLU after their name and ask them their area of expertise. You don't want to go to an advisor specializing in long term care insurance. Ask your CPA if there is an advantage for you to do either a Roth IRA or a traditional IRA and take advantage of this for both 2006 and in January for 2007. You can do a catch-up on the IRA since you are over 50. Everyone has different risk tolerances so I am not going to say put this % here and this % there. That is why you need to sit down with a professional. Do not feel pressured and if you do not like the professional or you do not understand the investment the advisor is putting you into then thank him/her and walk out the door to find a new advisor. Beware of variable annuities due to the high internal M and E expenses and the often long back end surrender charge. Most annuities will give you a penelty if you try and move the money prior to 6 or 7 years. Some are fewer years and I've seen some with 12 year surrender periods. Also you can not take money from an annuity until age 59 1/2 without an IRS penelty. Don't be afraid to ask the advisor how they get paid. Make a list of your goals and priorities for your life. Have the advisor work with you on accomplishing your goals. This will help you preserve your money and you will have something to show for the planning you are about to do. Good luck and happy holidays.
2016-05-23 04:36:03 · answer #2 · answered by Kelly 4 · 0⤊ 0⤋
First off, this is not the best place to find advice of the type you are looking for without someone knowing your personal situation.
What you should know is that Roth/IRA are both accounts for holding assets to be invested, they are not investments. You may not have them available to you anyway. I am not sure if a QRDO is taxable income as it depends on the source of the assets. For instance, if they money is coming from a source of unpaid income, such as a retirement plan or existing IRA. You should put it into another tax advantaged account, like an IRA.
Around the question of what to invest in, they is less obvious. CD's are not keeping up with inflation, so are unlikely to be the best choice for you.
I would do research around a lifestyle fund, that you can target towards when you need the money.
2006-12-21 00:02:24 · answer #3 · answered by anothersillypersonalsname 2 · 1⤊ 0⤋
I do not believe you can put it in a Roth or a traditional IRA.. They are for earned income only and only for $4000 annually. Since you are only 55, might spend some looking for another hubby. It would be a good investment. As for the rest, 50% in t-bills. They are free from state and local taxes. 50% in equities funds either mutual funds or index funds. If you are not familiar with investing you need to bone up your skills. "Investing for Dummies" is a good start.
2006-12-21 00:52:10 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Those are not mutually exclusive options. You need to put mutual funds/ets inside an IRA. At your age may not need to bother with Roth as deuctible IRA can save on taxes if you have income to offset. If not then Roth for sure. Open at schwab.com & put 200 shrs ADX in + $1000 in SWINX out of the $4000. If can get $5000 in due to age do so. NEVER ANNUITY! Tremendous built in expense & not worth it at all. Will have much money left over. $10k at least in reserve for expenses/living (health insurance if none) unless you already are set there. Rest can go in a regular schwab acct in PEO (oil stocks) IAU (gold) & some Reits (SNH) & the like for income. Hard to spit all this out in 1 message. Avoid paid advice. vegas_iwish@yahoo.com if more detail desired
2006-12-21 01:39:51 · answer #5 · answered by vegas_iwish 5 · 0⤊ 0⤋
go to your local bank and ask to speak to their investment advisor....if they don't have at least 5 years of experience go to another bank. or you could call merril lynch or edward jones, need to find someone honest to help you that knows what they are doing. make sure you ask lots of questions and don't invest in something that you don't understand. investing can be very complicated but if you have a good person to work with they can make it very simple.....remember in a good year the stock market makes around 10% a year.
2006-12-21 02:32:24 · answer #6 · answered by besthusbandever 4 · 0⤊ 0⤋
choices are aplenty when it comes to investing... one such is currency trading and available in 24 hrs a day... there are also many systems available in the market to provide tips as well but do observe their terms and conditions.. take a look at http://www.prosignal-forex.com/index.php?ref=1342 for example. hope this helps!
2006-12-24 04:26:09 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Go see an investment advisor. Most, if not all, would be glad to sit down and explain your options, and the tax ramifications to you.
2006-12-20 23:57:39 · answer #8 · answered by Gem 7 · 0⤊ 0⤋
Gem is right
make 5 part each into
commodity future, stk, MF(balance), CD & Cash
Or get portfolio manager % basis
track invt. with aptistock freeware
2006-12-21 04:25:25 · answer #9 · answered by dinu_pawar 5 · 0⤊ 0⤋
put it in cd's in the bank
2006-12-20 23:56:54 · answer #10 · answered by Cavegirl948 2 · 0⤊ 0⤋