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sschullo

Where Would You Invest Half Million?

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I don't think I could give you any real good advice without a full diagnostic first. Basically a review of goals, total assets, current and future tax brackets.

 

While I am a big fan of TIPS, I'm not advising people to buy them right now, they just seemed overpriced - I could turn out to be wrong. I like TIPS better when their yields are in the 2%+ range - though that also depends on inflation expectations.

 

I would probably advise you to buy a variable annuity, specifically the NEA Valuebuilder - and be sure to elect as many of the guarantees as possible - remember, you are now a retired person with no ability to tolerate even a 1 penny loss to your principle - you must, I repeat must, have some form of insurance (you insure your house don't you).

 

Then I would put the rest of your money into Equity Indexed Annuities - the best one's have the highest surrender charges and the longest surrender periods!

 

After you do this all of your life's problems will be solved (as will global warming - because you won't check account balances as much and your carbon footprint will be less due to less electricity use).

 

Of course I am joking!

 

You have a number of serious decisions to make and luckily you've made the bad mistakes before, so you won't make them this time.

 

Muni's might make sense - especially now, but do the math and make sure. In addition, be aware of state specific risk and make a conscious decision as to whether you want a state-specific bond fund or a national one (which will not be state deductible).

 

As you know.....take your time!

 

ScottyD

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sschullo,

 

Without knowing where you stand financially, knowing what to do with your money may be difficult.

Here are some questions I would ask:

-When do you need the money? What is your current savings?

-What is your tax rate?

-Your age-income,

-Risk tolerance.ex..are you willing to accept 20% return for a 15% downtown?

-Any children?

-Wills?

 

 

I would advise you to seek a prof. counsel..Not just an advisor who's going to put you in an annuity.

 

When an investor with substantial funds comes in and see me, I tell them to come in and let's just chat..

We talk about life, goals, and whatever comes to up. That way, I can find out if the investor is a good fit for me and if I'm a good fit for her/him.

And if all goes well, in our second meeeting we get down to business.

 

Lastly, make sure you check them out on FINRA.

 

Hope this helps...

 

 

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