Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Hello Everyone,
I am looking for an investment that provides:
(1) Principal protection
(2) Growth
(3) Income (optional)
I've heard that Vanguard has the lowest fees, but am not sure which funds would work best for this type of situation. Would you be able to offer some recommendations?
good luck finding the unicorn . the word growth does not belong with principal protection . no such thing unless you want an index linked cd or annuity which basically end up being more like a fixed income investment with not much growth
In order to get higher return/growth, you must be willing to take on more risk. However, a moderately aggressive portfolio, such as 60-40 might return more than an aggressive portfolio (100% equity) over a given time period as it takes the more aggressive portfolio longer to get back to even after a large drop in the market.
the peaks and valley's may be steeper but if you have a situation like now where bonds are contributing little to the party , until the equity side recovers the portfolio is just as stuck .
in fact if we have a decent up day my growth and income model will be positive again , the income model will not be . it will take even more up cycle to the stocks to over come the fact the bonds are down .
as of now the growth and income model is down 1.02% ytd, the very conservative income model is down 1.75% ytd
Thanks for your input everyone! I still have a lot to learn. Here's a little more background so you can have an idea of my situation. I'll update my original post to include the details.
Background
Due to health concerns (my father had a stroke), my parents sold their small business last year. My father has been the sole provider and taking care of my mother for the past 20 years. They are in their late 50's so not yet able to collect social security and they have no formal education (no HS or college degree...came to the U.S. as refugees during the 80's). Fortunately, due to years of hard work and modest living, they've been able to build up a nice savings.
I am trying to help them find a way to earn income until they qualify for social security. I thought perhaps an investment of some kind that would protect their principal as well as provide income would be worth looking into. Perhaps growth isn't as important in this situation. I just want to make sure that they're able to protect the money they've worked so hard for.
What are your thoughts about an annuity? I've recently started looking into them. It seems many people think the fees are too high and not "worth it"; however, it seems a better option than just spending down the money in the bank account. For reference, the amount they have to work with is $250K. They've paid off their home.
Edit: Well, I don't see a button where I can edit my original post. Lol
They are in their late 50's so not yet able to collect social security
For reference, the amount they have to work with is $250K.
how much do they need each year? and once they hit social security, will it be enough or do they need the added investment income still?
an annutity would just return their principle to them for the first decade or two, they could do the same, invest part of it and withdraw the rest from a bank account. having "metlife" or your choice of annuity broker isnt any different than this, except you keep the fees
At today's rates an immediate annuity is basically just handing you back the money you gave them for 17 years and charging a fee. You don't see your first dime of their money until 17 years later
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A Little Background
