Current Expert Advice:
Showing 1-10 of 44 answersQuestion:
Anonymous
4 weeks ago
Gentlemen, My father is 70 years old...retired...
Gentlemen,
My father is 70 years old...retired. Receivees a monthly pension of $3300 and has monthly expenses of $1900.
He has $400,000.00 in CD's earning approx 2%. What a better and safe...
Expert Answer:
Investment and Retirement
4 weeks ago
I think everyone would like to have an alternat...
I think everyone would like to have an alternative "better" and as "safe" investment than what the banks and credit unions are offering. There is an old saying, "the greater the risk the greater the reward". The answer to the to the first part of your question is yes. There are better investments for some of his money. The answer to the second part as to safety depends on what is his risk tolerance. If his definition of risk is "0", or he does not want to lose all of his money, then there are several options. But, if he is unwiling to take any fluctuation in his principal value, then there are not many choices any better than what he has. Many people are in his predicament. For those unwiling to take more risk the best option is to "ladder" his CD's. Talk with his or your investment professional to see if this will work for him.
1 repliesQuestion:
Anonymous
11/25/2009
Hi, 42 year old male, with $300,000 to invest ...
Hi,
42 year old male, with $300,000 to invest for retirement...do you recommend a fixed or variable annuity....okay with some risk but do want a guarantee of no principle loss, and want to...
Expert Answer:
Investment and Retirement
11/25/2009
If you are wanting market participation, but no...
If you are wanting market participation, but no loss of principal, there are several investments you can consider. A fixed annuity does not offer the market participation, but a variable one does. Threre are also FDIC insured certificate of deposits that offer returns based on market indexes. I have also seen bank issued notes that while they do not offer 100% return of principal, they do offer some downside protection. It all depends on your individual situation and your goals. At 42 years of age you have many more options availabe than someone ready to retire. Consult with your financial advisor for more ideas.
Question:
Anonymous
11/14/2009
I just came into some money from my fathers wil...
I just came into some money from my fathers will, I am debt free and was wondering what I should do with the money. I am 57 years old and don't want to lose it in the stock market.
Thank you
Expert Answer:
Investment and Retirement
11/14/2009
There are several options available to you. But...
There are several options available to you. But, first let me say there is no riskless investment.Treasury bonds and certificates of deposit are your safest bets,but even they have risks such as purhcase power risk if interest rates go up and loss of principal should you need to liquidate before they mature. That being said, you can invest in ways that can reduce your exposure to the variable risks involved with investing.
You have probaly heard of "diversification". Diversification of investments is designed to lessen risks, but does not eliminate them. Your needs and goals will help an advisor develop a diversified investment portfolio for you. Take time to meet with several investment advisors and listen to their recommendations. This will help you to understand what your real risks are.
Question:
Anonymous
10/4/2009
iam moving to knoxville an need to know of a st...
iam moving to knoxville an need to know
of a strong bank thats not going away.
thank you.sir.
Expert Answer:
Investment and Retirement
10/4/2009
Welcome to Knoxville. Your question is one that...
Welcome to Knoxville. Your question is one that I am sure many people have concerns with. There are several local banks that I feel are very strong. But, I also felt the same way about Citigroup, Merrill Lynch, Lehman Brothers and so on. So to answer what bank will not go away is almost impossible. You might check the FDIC website for some information, but my suggestion is to make sure none of your deposits are over the FDIC limits. That way if a bank goes away at least your money won't.
Question:
Anonymous
10/1/2009
i have $20,000 to invest...i want pay down exis...
i have $20,000 to invest...i want pay down existing mortgage to reduce the years required to pay off mortgage...are there better uses for this $20,000?
Expert Answer:
Investment and Retirement
10/1/2009
This is a question I hear a lot. Of course to a...
This is a question I hear a lot. Of course to answer this question properly I would need to know the interest rate on your mortgage, other savings, your age and your goals. But, I really think the answer to this question lies in your ability to save, and your adversion to debt. If you are one of those people who just cannot stand to owe anybody for anything, then paying down your mortgage will probably make you feel better. But, if you are not adverse to debt and you are not a good saver, then investing the money may be a better idea. Typicaly a person will always make that monthly house payment, but when it comes to saving an extra several hundred a month it is difficult.
The answer to this question seems to always come down to the individual make up of the person. Don't look at this question as to what makes the most fiscal sense. Look at it as to what makes you the most comfortable.
Question:
Anonymous
9/20/2009
I am 50 year old female in the insurance busine...
I am 50 year old female in the insurance business making pretty good income just started my retirement 5 years ago been divorced 10 years married for 18 what would be the best way to invest for...
Expert Answer:
Investment and Retirement
9/20/2009
This is a question many people should be asking...
This is a question many people should be asking. Many people do not understand how to invest their 401k's, and unfortunately employers and plan advisors don't really advise. This is a service that we provide. All we need is a copy of your investment choices and a little background information and we will be glad to suggest an allocation for you. Contact us at your convenience.
Question:
Anonymous
9/20/2009
Bought 900 shares SDS (Ulta Short S&P500 ProSha...
Bought 900 shares SDS (Ulta Short S&P500 ProShares) June 10 @ $53.15/sh. On Sept. 18 was @ $39.67. Fin Advisor believes market will tank again. However, have already lost $$12,000+. Your thoughts...
Expert Answer:
Investment and Retirement
9/20/2009
Unfortunately you have owned an investment that...
Unfortunately you have owned an investment that makes money when the market goes down, and we have had a suprisingly strong market since June. While the S&P Index is only up 13% since your investment, this fund doubles the performance...good and bad. Hopefully you were aware of this. I do expect a market pullback in the next 30 or 60 days, but that is not guaranteed. If this type of investing makes you nervous I suggest you look at taking a different approach. There are other ways to invest in the stock market without taking as much risk.
I believe in the markets. I also believe that the emotions fear and greed prevent people from making money on a consistant basis in the markets. Advisors are constantly helping clients calm those emotions. Sit down with your advisor and really talk through your investment, your goals, and exit strategies.
Question:
Anonymous
8/24/2009
I am 29 years old and currently living in Europ...
I am 29 years old and currently living in Europe. I have a Roth-IRA with about $12,000 in it and about $20,000 in a TIAA-CREF account after 4 years of teaching in the U.S. and contributing to that...
Expert Answer:
Investment and Retirement
8/24/2009
One of the rules for contributing to a ROTH, or...
One of the rules for contributing to a ROTH, or a traditional IRA, is that you have earned reportable income. It does not sound like your scholarship qualifies for this so there are no qualfied plans for you to contribute to. However, you can invest in an annuity, which the earnings are tax deferred. Since your contributions are not tax dedcutible, there are no limits as to how much you can invest. All of the earnings are tax deferred like in a traditional IRA. You also have to abide by many of the same rules as in a traditional IRA such as not taking the money out until the age of 59 1/2. If you do take money out prior to age 59 1/2 you will pay taxes on the earnings and a 10% penalty.
There may be other advantages or disadvantages involved. Please talk to your local financial advisor for further information.
Question:
Anonymous
8/13/2009
I was terminated march of 2008 due to lack of w...
I was terminated march of 2008 due to lack of work.had been w/co for 13 years I still have my money in the Merrill Lynch acct.Its only @ 30.000.00 dollars but what should I do since I no longer...
Expert Answer:
Investment and Retirement
8/13/2009
Most people prefer to roll their 401k into an I...
Most people prefer to roll their 401k into an Individual Retirement Account (IRA) once they leave their employer. It is a simple process and the plan administrator at Merrill Lynch will provide you with the forms.
By rolling the money into an IRA you will have more investment choices, and a little more control. Unless Merrill Lynch asks you to move the money out of the 401k you do not have to. Your money will continue to be invested the way you set it up, and you can make changes to it as if you still work there only you cannot add more money to it.
Question:
Stan
Knoxville, TN
8/6/2009
Asking on behalf of my wife's parents: they are...
Asking on behalf of my wife's parents: they are retired, age early 70's, average health, no debt except ongoing living expenses, can currently subsist on income from soc. sec., & small pension....
Expert Answer:
Investment and Retirement
8/6/2009
The parameters you put on your in-law's money c...
The parameters you put on your in-law's money certainly does describe what "varaible" annuities have the availability to do. Not many other investments can do all that you require and also give some protection on the money. "Variable" annuities are more expensive than just buying mutual funds or individual stocks, which is where most people put some of their money when they want to outpace inflation. On average they cost about 2% to 3% more on an annual basis (commissions included) than a typical stock mutual fund. But, for that extra cost there are benefits. Those benefits could be a guaranteed death benefit for the heirs, which protects the principal in down markets. Also, there could be a living benefit, which would guarantee the return of principal in the event the market does not perform, and finally there could be a guaranteed income benefit that would provide income for life if it was needed. You will have to do your research to see which company would provide the most benefit or benefits for their needs.
If the additional cost does not justify the benefit for them, then they will have to look at using mutual funds, stocks, and bonds. Here is the thing. If you know stock and bond prices will always go up, or you have the time (at least 10 years) to wait for price recovery, then you do not need any of the above guarantees. But, if you are not willing to take the risk of investing, then buying a little insurance to guatantee the return of your principal, guaranteeing an income, or a lump sum of money being available might be a god idea.
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