I agree with KennyG! When the factory I worked at for 33 years closed except for a few of us everybody pulled their money out of their 401Ks and gave it to various account or portfolio managers. None have been happy with the long term results. Most of these managers will either steer you to a low paying mutual fund or annuity that they get a commission on or they will invest your money in mutual funds and take a percentage for "managing" your money. You are much better off going with a large company like Fidelity, JP Morgan, Vanguard, etc., and managing your money yourself. When our factory closed I received some very good advice from some people who have forgotten more about finance than I will ever know. So I left my money in my 401K and only rolled it into an IRA when I decided to retire. The IRA is with Fidelity. There are several large companies that offer this service but I like them. The lady I deal with at Fidelity calls me every few months and discusses what "I" want to do with my money. She is paid a salary, no commissions involved. According to her she is rated on how well her clients do. So it is in her interest to see me do well. I have mine spread out in twenty four different mutual funds. Even though she gave me recommendations I investigated the funds and picked where I wanted to put my money. I believe I have more than 2800 funds to pick from. I control what is invested in different funds, and she tries to keep me from screwing up too badly. Some of the moves I have made have left her speechless. Yes, one time she actually said, "I am speechless!". And I quickly sold out of that fund.
I have people tell me that they don't understand mutual funds, the stock market, etc. and that it is too much trouble to learn or too boring. Then they gripe that they can't retire because they don't have any money saved. It is your future, your retirement, you need to learn!
Here is some common sense advice she gave me a few weeks ago when we talked for nearly an hour. These are from my notes. The stock market is overdue for a correction. All stocks are overpriced right now. So if I intend to take money out for say a new vehicle, now is the time to do so. She said to be ready to move money to bond and value funds when it appears the market correction is taking place. Even though I have funds earning at a +30% rate right now they may drop to a -30% lose overnight so don't over invest in any one fund or industry. When, not if, the correction comes don't look at it as a disaster. Look at it as an opportunity. Look at a correction as stocks being put on sale. As soon as things start getting back to normal and the market starts going up invest more in the higher risk, higher yielding growth funds. The stock market will always come back. It may take a few years, but it will come back. And finally, unless you know when you are passing from this earth, always plan for the long term. The last one came from a long time client of hers who had told her of bad health news.
Now I hate to sound like a know-it-all when we discuss retirement and financial stuff but I see friends who have made a lot more money that I working until they are in their late sixties. I see them in bad health, barely dragging themselves to work every day. While thru a little luck and much good advice I am enjoying a comfortable retirement. DON'T leave everything up to a person who makes money off your money. Control your own finances and your own destiny.
Stepping down off my soapbox.
RSKY
