Is  an Equity index annuity a good investment for retirement?
336848
It depends.  Usually people buy annuity to buy the peace of mind that they won't run out of money if they live too long.\n\nEquity Index annuity is an annuity where the cash value and death benefit both depends on a specific equity.  \n\nLike invest in stock market, you want longer time horizon.  Also read all the fine prints in details.\n\nAlso, ask the agent to quote the premiums of a term life, whole life and universal life policy for you so you know what you're really paying.
673210
I recommend low-cost mutual funds.  Vanguard has many good ones, and Fidelity has some very low-cost index funds.  Look for tax-managed funds, or tax-exempt bond funds.  Some bond funds are exempt from taxes in a particular state as well. However, tax exempt bond funds give lower returns.  You should talk to a tax advisor to see which way is better for you.  In stock funds, index funds tend to have lower capital gains than actively managed funds, and the returns are often just as good or better.\n\nIf your stock isn't already in a retirement fund, you can't just put it all in there at once.  You're limited to $4000/year in contributions. Do a Roth IRA if you can, but there's an income limit, and the stock sale may put you over that limit.  If you don't qualify for Roth, put what you can in a traditional IRA.  Either way, inside the IRA you can buy some of the mutual funds I mentioned.\n\nIf you can transfer $4000 worth of stock directly into the IRA and then sell it, that may avoid the capital gains tax on that portion.\n\nAny single stock is a high-risk investment, because it can go up or down quickly, so you can reduce your risk a lot by selling and diversifying (into those mutual funds.)  The bad news is that you'll have to pay capital gains taxes on the sale of your stock, especially if you've had it for less than a year.\n\nYou should also talk to a tax professional about the Alternative Minimum Tax, which can hit you if you have a large capital gain like that.\n\nBy the way, real estate has been fantastic recently, but it's showing signs of slowing down.  This may not be a good time to invest heavily in real estate.
12817
It depends on how old you are.  Most retirement plans depend on the economic conditions at the time of retirement.  One person can take their 401k out this year and might get more money then the person taking it out the year after.  See, its all economics.  On top of the economics, its what you invest in.  When you put money in a 401k, you have experts putting it into mutual funds for you.  They take alot from you.  So, theoretically, you can buy your own stocks and make a heck of a lot more.  And instead of investing in them for 45 years, you can invest for 8 years and make the same amount or more.  This is true, however, you dont know what to invest in.  So, I suggest you start small and on something a bit more safe.  I will show you 2 or 3 of the best ways to do this.  I am a rare coin expert.  These ways are not fool proof because the economy goes up and down in a cycle of booms and busts.  But, they do cut out the risk because you only have 10 years left.  \nThe first method is through gold.  I suggest you buy the physical form and not stocks or anything of that nature.  You can buy the physical form and allow the sellers to store it for you.  Do not allow them to store it for you if they are just a small company.  I would rather take the physical gold with me.  There is a fee to take this gold with you though.  But, its better then not having it.  With gold, its always hovering at about $278 to about $315.  I would say that anything less then $290 is a good buy.  When you buy, they always tack on an additional couple of dollars because the gold was assayed into a gold bar for you.  When gold is high, they add like $4.  When it is low, they might add $7 dollars.  Dont worry about this.  Just pay for it.  I would rather buy bullion coins then the gold bars in the packages.  They cost $10 dollars above the gold value in the bar form.  Now, there are certain gold bullion coins that you should and shouldnt buy.  Its always best to go for the pure gold ones.  The reason being is, sometimes a jewelry store will take it in, but they will only pay for its content because they were going to melt it anyways.  And if it wasnt pure 24k, then they might have to take a couple dollars off to turn it into 18k or 14k, etc etc.  So, the purest ones are the Canadian gold coins, and the Chinese gold coins.  When gold goes down, you buy, when they go up, you sell.  Its that simple.  You cant lose because gold goes up and down all the time.  So, dont sell if you lose.  Just keep it there.  Whats the point of saving if you are going to dip into it?  So, over the course of 10 years, I know you can make a sizeable profit.  The question is large or small because you will not know when to buy and sell.  All you see is a profit when you sell, and you see a cheap price when you buy.  What you do is buy when its around $290 or less.  Sell, when it goes up.  And with the excess, you can buy more gold.  Just continue doing this.  I know for a fact that you can start off with $3000 dollars today and make at least 20 trades in the next 10 years and make no less then 100% of your investment back.  Gold is currently at $500 plus.  What if you bought it when it was $290 or less, which is what is preferred.  Thats over 200 per ounce.  So, in a year or two, do you see that you would have had over 5k?  You just have to wait till it goes down to around the 300 mark.  I mean, even if you buy for 290, and it goes up to 310 in 2 weeks, you can still sell and make 300 dollars.  That would add almost another ounce to your portfolio.  Continue to do this until you are about to retire.  During the last year, you will be waiting for the highest price you can find to sell.  Another thing to look into is instead of gold coins, you can buy grain gold.  They are just little balls of pure gold.  They are usually a couple dollars cheaper, but they are hard to obtain sometimes.  \nSecond way of investing is buying coins from the US mint.  They will be the cheapest price you pa
771008
Im sure its worth something.  If you would keep it for a while then the value would go up after he retires.  The longer you keep it the more value it will have.
62381
If the employer provided a match, then yes.  If not and they have a match with the traditional 401k I would contribute to that.  If no match to either, then I would invest outside of my employer.  First in a Roth IRA and then in I bonds and mutual funds.
896663
You should always have a separate retirement fund besides your pension plan.  Many pensions are underfunded now because companies can borrow from them.  Go start a Roth IRA somewhere.  If it were me, I'd find a mutual fund with a very low expense ratio, and one that tracks a major index, like the Dow or the S&P 500.\n\nAs to whether you can sue - I'd take your question to your state's attorney general's office.  They will have a better knowledge of the rules in your state.
892487
Frankly, if you are asking people for favourite stocks, then I think it is time you take a step back and improve on your financial literacy and investment education before you attempt to invest in anything. \n\nWho in today's dynamic society can guarantee that starbucks will last forever or at least until you retire? Who in today's dynamic society can guarantee the survivorship of any companies and hence their stock for 50 years until you retire? Who in today's dynamic society can guarantee that the stock market will not crash when or just before you retire? \n\nListening to free, off the street advice is an expressway to disaster and there is never one "God-Given-Sure-Shot-Highway-To-Freedom" Stock. \n\nRemember, just buying stocks and holding on does not make you an investor and does not guarantee you a nest egg... your nest could break faster than you expect and will hardly last your lifetime if you do not have any investing knowledge.\n\nIf you want to just invest monthly and forget about it hoping that someday in the future you will have enough to retire on, then you probably want to look at some investment linked endowment plans with a financial planner instead. The stock markets is no place for amateurs with completely no knowledge.\n\nRead more good books and articles on investments to expand your vision and horizon before you decide to go deeper into the subject. For some of the best investment books that I have ever read, please visit http://www.bestoptiontradingbooks.com and for some of the must-read investment articles that I wrote personally, please visit http://www.mastersoequity.com/articles.htm\n\n\nHope these information helps and good luck on your journey to financial excellence.\n\n\n\nhttp://www.mastersoequity.com\n\n\n\n\n.
918984
Check into a reputable insurance co.  Not one offered by the bank or broker.  You can get a much higher return if you go directly to an insurance co.  Rollover your 401K to a Fixed Annuity if you like safety and want to see it grow and no risk of the market.  Hope that gives you some info.
1182485
Ahhh, the million dollar question for Roth accounts...\n\nAnd the answer is - it depends (sorry). Unfortunately, you need a crystal ball for this one. Your decision will likely come down to what you believe the future holds. You need to consider several factors, but you basically have two courses of action to take. \n\n1) Take the sure thing - Contribute to your Roth 401(k), paying tax upon the contributions at your current income tax bracket.\n\n2) Let it Ride - Contribute to your Regular 401(k), defer taxes upon that income, and enjoy tax-free compounding of interest until you are able to take a qualified distribution (usually at retirement) at which time you will pay taxes on the principal and earnings at your future income tax rate.\n\nI suppose a third option would be to hedge your bets and contribute some money to both accounts so that you have some tax-related diversification in your retirement account (but let's not get that technical).\n\nSo, look into your crystal ball...\n\nDo you believe that you will be in a higher tax bracket at retirement age than you are right now? If so, the Roth option may be the right choice for you as you will likely pay less in tax today than you would years from now in retirement. Likewise, if you believe you will be in a lower tax bracket in retirement, it makes more sense to simply contribute to your Regular 401(k), enjoy your tax deferral over the years, and pay the piper upon retirement.\n\nThere are several wild cards to consider in this scenario, not the least of which is the possibility that tax brackets change. If you want my honest opinion, I think it is naive to assume that the historically low tax brackets we enjoy today will be around in 20 or 30 years. I am 31 years old and, without getting political, just look at the current landscape of our country and its budget deficits. The cost of wars, strains on social security from aging baby boomers, etc, leads me to believe that the government is mortgaging our nation's current problems and our generation will likely have to pay for it. And how will we pay for it? Higher taxes. All things being equal, if I were you and I had more than 15 years or so until retirement, I would opt for the Roth 401(k).\n\nBy the way...depending upon your plan's provisions, if your employer matches contributions to your Regular 401(k) plan, then you should still qualify for the match, regardless of whether you contribute to the Roth 401(k) or your Regular 401(k).  I think some of the other answerers on here were getting confused by your question - comparing a Roth IRA (not a Roth 401(k)) with a Regular 401(k).
1162875
http://www.tradingresources.org/ira-401K-investing.htm\n\nshould be able to help answer your question.\n\nMoni
786753
A great stock for beginners, and for 75 + % of all investors, is:VFINX. Okay, it's not really one single stock, but rather a collection of stocks; an Index Fund. This index fund buys all the stocks in the SP 500 according to their individual weightings. This is a great first investment because the investor gets exposure to all stocks in the SP 500 in one purchase. The other perk to owning index funds is that the fees associated with them are extremely low compared to mutual funds. This is because mutual fund managers select any stocks they want, as opposed to the strict rules of index funds, which, in the case, is concentrated in the SP 500. This sounds like a disadvantage; however, the numbers don't lie - mutual funds underpreform the SP 500 by 1-1.5 % over time. An index is a better choice than a single stock because your money does not ride on the prospects of one single company. In fact, this investment in VFINX will probably rise between 8-12 % annually for the next ten plus years. I recommend an index fund to most investors, not just beginners, because again, historically, index funds have returned a higher annual rate, AFTER EXPENSES, than mutual funds. In fact, VFINX has beaten 75 % of the other funds available, BEFORE EXPENSES, during the last 10 years. After expenses, VFINX has beaten over 90 % of all funds. Finally, you don't have to "actively manage" this purchase (aka look at the stock market everyday - although you could!) because, again, you own a small percentage of 500 of the best companies in the US. All this adds up to a relitively safe, solid long-term investment.
653896
There are pros and cons of variable annuities as an investment.  I think the key here is whether your employer has a matching program (like you contribute 5%, and they match 5%).  If yes, you should still join, variable annuities or not, you are getting free money from them.  If there is no matching, you should forget about them and open your own 401K account else where and invest in regular mutual funds yourself.
972936
that is a very interesting question. i had to put some real thought into that one. but to be honest i would have to say yes that i would like to know. i invest 20% of my income to save for my old age. i have no children to leave any assets to. so if i knew i was going to die before the age of retirement i would know to quit putting money in the 401k plan at work. and it would give me time to sell my more valuable personal posessions rather than have them become the property of the government or some greedy relative that i have never liked. and also to do the things that i have always wanted to do like take a few weeks on a luxury cruise ship and go on a gambling spree in las vegas. and buy a dodge viper just to see how many sets of tires i can burn off in a week. and i am still fairly young, in my late 30s. so i have never made any burial arrangements for myself yet. but i could have a tragedy and die at any time, even if i knew i was going to pass away next week it would give me time to make some arrangements rather than put my parents through it.
517192
Buy a diversified series of mutual funds. Individual stocks are just way too risky in most cases, especially for novice investors, even if they look like a sure thing.  How are Enron and Worldcom doing right now?\n\nMake sure you hit all the assets classes, like Large cap stocks, small/mid cap stocks, international stocks, emerging markets stocks, government debt, corporate debt, hi-yield debt, foreign debt, emerging markets debt, real estate, commodities, and precious metals. That's 12 categories right there, so let's say you get started with with $1200, you're talking about $100 each. \n\nThen sit back and rebalance each year, back to your original percentages. This is called asset allocation. The thinking being, what's BEEN hot is more than likely not going to STAY hot. All markets, after all, are cyclical.  This is why people who invest their 401(k) by just putting in whatever's had the most recent best numbers never get anywhere--they're investig in something that DID will and IS probably NOT doing well.\n\nThis sort of portfolio should average 8-12% per year, so just split the difference and say 10%. Will it do 10% EVERY year? Of course not. I'd be surprised if it ever did EXACTLY 10%. That's an annual average. With that average, your money should double roughly every 7 years. \nSo, in 7 years you should have about $2,000\nin 14 years you should have about $4,000\nin 21 years you should have about $8,000\nin 28 years you should have about $16,000\nin 35 years you should have about $32,000\nin 42 years you should have about $64,000\nin 49 years you should have about $128,000\nin 56 years you should have about $256,000\nin 63 years you should have about $512,000\nin 70 years you should have about $1,024,000!\n\nOf course, if you keep adding money in, say $100 a month, you'll become a millionaire MUCH sooner. The key is discipline, and sticking in when markets are up OR down. Don't try to time the market--you'll NEVER get it right.\n\nHere's a handy formula:\n\n$100/month x 12% retutn x 20 years = $100,000.  \n\nSo if you invest $300 a month, you can expect to have $300,000 or so in 20 years, depending on what return you get.  And remember, even if you stop there, that money itself will double again in 7-10 years, depending.  Then double again.  Then double again.  You get the idea.\n\nIn short, you can make a HELL of a lot of money, with a small output on your part, if you do it right, and are patient.\n\nOh, and if you qualify, and do this all in a Roth IRA? Then every penny will be 100% TAX-FREE. That's a deal that's too good to pass up. That's why I tell all my under-30 clients--if you make under $90,000, and therefore qualify to do a Roth, you'd be a fool not to. Just having the power of youth (and therefore time) on your side is such an advantage, to squander it would be such a waste!\n\nHope this helps!\n--J.\n\nP.S. The previous answerer's advice about contacting Edward Jones is gold.  I would go to their website at www.edwardjones.com, enter your zip code, and find the closest office to you.  Chances are there's one within 10 miles.  They have 10,000 office in the US, UK, and Canada.  And they will take care of you right if you decide you don't want to go it alone.
632453
The main reason you invest money is because you will need money in the future when you retire.  You also invest to buy a house or to save for a time you are layed off.\n\nFirst, I would make sure you have at least 3 months salary saved up in the bank or in a money market fund for an emergency fund. Financial disasters like getting layed off or sick happen to all of us.\n\nSecond, I would pay off all high interest debt. Pay off everything you can except the house mortgage. Paying off debt is one of the best investments you can make. You will have more money in the future because you won't have credit card bills to pay.\n\nThird, if you have money left, start investing in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money conservatively, in money market funds and bond funds, and part aggressively in stock funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be. \n\nInvesting in a mutual fund IRA for retirement may give you an income tax break. Talk to your tax adviser. You may also be able to invest in a stock mutual fund via a 401K plan at work.\nTaking advice off someone you met over the Internet and know nothing about is risky. Read these websites for further information.
483855
Expenses are generally higher in variable annuities than mutual funds but there are no front-end loads to deal with and annuities can offer things that mutual funds can't - like guarantees. \n\nAnnuities may help you 1)Receive guaranteed retirement income payments for as long as you live, 2)Protect beneficiaries with a death benefit 3)Diversify your investments. 4)Grow assets on a tax-deferred basis and 5)Avoid outliving your assets.\n\nIf you want to protect your beneficiaries, variable annuities generaly offer a choice of death benefits to protect assets for your beneficiaries should you die prior to annuitization. Also, a variable annuity’s death benefit avoids the expense and delays of probate.\n\nIf you're concerned about the volatility of the stock market some variable annuities offer an “Income Benefit” feature. This optional feature (available for an additional fee) can provide you with a minimum level of income (upon annuitizing the contract) should the market decline dramatically. Some variable annuities also offer principal protection features which guarantee that you will get back at least your initial investment after some stated period of time (typically ten years).
714890
Not a good idea at all, the penalty for borrowing against your retirement funds is pretty heavy, they will tax the crap out of you, best to try the Ameridream program or Fannie Mae Foundation. Best of Luck.