quote:

Originally posted by Woodman:
6% annuity with a very small payout starting now.

What product is that? Normally if the payout is immediate, there is no interest rate as such (there's an internal rate, but it ain't no 6%").

quote:

Originally posted by kkina:

quote:

Originally posted by Woodman:
6% annuity with a very small payout starting now.

What product is that? Normally if the payout is immediate, there is no interest rate as such (there's an internal rate, but it ain't no 6%").

Yeah, I would like to know, too.

I miss the days of 5% money market gains.

What is his tolerance for risk as in how much of the 200K is he willing to lose if the investments don't work out as planned? If the answer is zero then CDs or money market funds are about the only way to go with a current return of about 2 percent. If more he can allocate percentages between low risk and higher risk hoping for a higher rate of return long term depending on his risk tolerance. He can open a brokerage account with the likes of Vanguard or Fidelity to get started with a whole lot of investment options. Both have low management fee target date funds if he wants them to figure out their recommended allocations based on his age.

quote:

Originally posted by kkina:

quote:

Originally posted by Woodman:
6% annuity with a very small payout starting now.

What product is that?

Last I checked, admittedly years ago, it would entail two instruments. One, say, set up for $400/month for 240 months, and the other locking up money for the same 240 months - 20 years.

I'm thinking half the money immediately paid out for 240 months will produce a $440 monthly check. The other half will pay whatever the 20-year lock-in terms dictate.

“When called by a panther, don’t anther.”

Giving investment advice isn’t a good idea IMO.

quote:

Originally posted by Pipe Smoker:
“When called by a panther, don’t anther.”

Giving investment advice isn’t a good idea IMO.

Agreed!

Quite a few years ago I began to refuse to give people advice on anything. "What should I invest in?" "Which car should I buy?" On and on.

Invariably, the advisee will eventually come back at you with, "That was the worst advice I ever got. You stink!"

No more.

Granted, giving advice of any kind is usually futile. Most don't take it or try and apply it incorrectly.

It's probably better to phrase the question differently;......

"How would *you* invest $200,000.00?"

V.

His best investment is a certified financial planner. Money+ignorance=no money.