My 80-year old mother’s financial advisor just sent me this email. A few years ago he recommended an annuity, so I’m not sure I can trust his advice. What do you think he intends to do, and is it reasonable?
I would suggest that we move 100K of the almost 400K that will be earning 4.1% in her savings account. My recommendation would then be to allocate 40K into each of the two programs that I would recommend. One is yielding 6.2% and the other 6.3%. We would leave the remaining 20K in money market (currently earning 4.5% but will fluctuate and is subject to change as rates change). My objectives for these investment recommendations are preservation of principal, steady income, and capital appreciation on the back end of the program. Our total return target over the life of the program is an annualized total return of 9% -10%. There is no commission, load or ongoing fee paid by the client to go into these programs so the yield is a net yield.
Thanks for everything so far! Here’s more:
There are several investment programs with which I work that are direct investment programs that are non-correlated to the stock market or to the bond market, are non-traded and therefore do not change in value (share price is stable at $10.00) and are earning yields of 6.2% and 6.3%. We can re-invest the dividends or have the dividends swept into a money market.
I have a series 7, and a life, health and variable anuity license.
I still have a year to complete my bachelors. any advice on a good insurance company to work for? is it possible to manage school and a job doing financial service? I have and intervew with metlife, how is that company like working with financial service?
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I was recently fortunate enough to inherit a sizable amount of money that I do not need at the moment. I don’t want to risk it on stocks and shares. I made enquiries on the Net about buying an annuity, but on the returns that I’ve been quoted, I would have to live to about 100 before I saw any profit on the deal. I would be better off just keeping it in a Building Society.
This can’t be right otherwise no-one would buy an annuity. What am I missing here?
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