I am 55, small fixed income. I own $200K to end 30 years. A financial advisor recommend: $30K surrounded by income &?
$170K in an annuity which I can start getting a guaranteed income surrounded by 7 years to last 30 years (and competent to withdraw after 7 years short a penalty). Is that sound guidance? I am very unsullied to this so any help would be greatly appreciated.
Answers: 3 question:
1) How much is your advisor getting in commissions for selling you this annuity.
2) How much can you thieve out of it after the 7 years?
3) Why is your advisor recommending you pinch $30,000 out now?
------------------------
Here's the situation:
In that concluding 7 years, we had the 9/11 recession and the current stock drop.
March 10, 2001 the Dow Jones average be 9878.
Today, the Dow is at 11740.
If you invested 7 years ago, you would still have made 2.5%/year
The NASDAQ averaged 7%/year during alike 7 years (from 1300 to 2169)
If you invest the $170,000 in 10 different stocks that are going to be doing capably in 10 years (boring stocks, approaching Coca-Cola, Exxon, and AT&T), they should average at least 7% over the subsequent 7 years.
That $170,000 will become $272,000 in 7 years, not including dividend payments.
If you steal $272,000 let it verbs to grow at 7%, and pull $22,500 out per year, the money will run out surrounded by 23 years (30 years from now, because you consent to it grow for 7 years first).
About half the money will be tax-free (because you salaried the income taxes before you get the money to buy the stock with), and half will be at the capital-gains rate (which is 15% immediately, but the Democrats may raise that to 30% to trade name sure those billionaires "pay their unbiased share".)
The first question you should ask this financial advisor is this:
HOW MUCH OF MY MONEY ARE YOU TAKING IN COMMISSION? All too recurrently, the commissions these people brand is more than your return! Make sure you hire an advisor that you pay by the hour, not by the product he/she sell you.
Please don't make the mistake that so frequent people do---just listen to a financial advisor without truly kind-hearted the consequences.
You haven't said how much you'll be drawing in 7 years near the $170K investment. And, do you need the 30K very soon? Why can't it also be invested for the 7 years?
I assume you have other sources of income to fund your retirement (e.g. Social Security). Obviously, if you're planning on living to 82 years behind the times, you'd of drawn that money for 20 years. and I can't imagine that would be more than $10,000 a year.
The annuities offered by financial advisors frequently own very elevated fees involved with them, so I am intensely suspicious of them. I would suggest reading the Vanguard site and get a low excise annuity.
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Answers: 3 question:
1) How much is your advisor getting in commissions for selling you this annuity.
2) How much can you thieve out of it after the 7 years?
3) Why is your advisor recommending you pinch $30,000 out now?
------------------------
Here's the situation:
In that concluding 7 years, we had the 9/11 recession and the current stock drop.
March 10, 2001 the Dow Jones average be 9878.
Today, the Dow is at 11740.
If you invested 7 years ago, you would still have made 2.5%/year
The NASDAQ averaged 7%/year during alike 7 years (from 1300 to 2169)
If you invest the $170,000 in 10 different stocks that are going to be doing capably in 10 years (boring stocks, approaching Coca-Cola, Exxon, and AT&T), they should average at least 7% over the subsequent 7 years.
That $170,000 will become $272,000 in 7 years, not including dividend payments.
If you steal $272,000 let it verbs to grow at 7%, and pull $22,500 out per year, the money will run out surrounded by 23 years (30 years from now, because you consent to it grow for 7 years first).
About half the money will be tax-free (because you salaried the income taxes before you get the money to buy the stock with), and half will be at the capital-gains rate (which is 15% immediately, but the Democrats may raise that to 30% to trade name sure those billionaires "pay their unbiased share".)
The first question you should ask this financial advisor is this:
HOW MUCH OF MY MONEY ARE YOU TAKING IN COMMISSION? All too recurrently, the commissions these people brand is more than your return! Make sure you hire an advisor that you pay by the hour, not by the product he/she sell you.
Please don't make the mistake that so frequent people do---just listen to a financial advisor without truly kind-hearted the consequences.
You haven't said how much you'll be drawing in 7 years near the $170K investment. And, do you need the 30K very soon? Why can't it also be invested for the 7 years?
I assume you have other sources of income to fund your retirement (e.g. Social Security). Obviously, if you're planning on living to 82 years behind the times, you'd of drawn that money for 20 years. and I can't imagine that would be more than $10,000 a year.
The annuities offered by financial advisors frequently own very elevated fees involved with them, so I am intensely suspicious of them. I would suggest reading the Vanguard site and get a low excise annuity.