Someone please cyber kick me! (annuity, IRA, brokers, fund)

[rose3408]

I'm a divorced single woman, 56 yrs young, and will need to totally rely on my small amount of retirement funds I currently have. I said, "small" because after my divorce I was unable to contribute due to financial burden of a divorce and job loss.

I am turning to all the wonderful people here on the forum because no one, and I mean no one will be honest with me, but I know I an always rely on my friends here

I had around 20k in an IRA (which was once a 401k) but rolled over after the job loss. Last week when the market crashed big time, I said I had enough, and couldn't stand to lose anymore. I went from 22k to 19k within a matter of weeks. I watched the market just crumble and did the forbidden. . . I know, I know, I could kick myself! My funds were with American Funds in a well diversified portfolio, and I put them in a money market until I could fine something safe, fixed and where I wouldn't lose any more money. I called my broker, who I never trusted, and reminded him even when the market was great 5 to 10 yrs ago, I still wasn't making any money, and tired of it, and wanted out.

I'm so confused because one friend today said you should put it in a CD, a trustee fund, etc. I reminded him, these were not even choices according to the crooked broker. I just wish someone would be honest with me.

At work we have a great 401 with Fidelity. I presently have a very small Annuity with around $1,000, fixed at around 3%, but everyone says "stay away from Annuities" so I feel stupid for even putting money in there!

I hate being such an ignoramus, but I have no clue at this point where to put these funds! I'm looking for something safe, even at 4 -5%, due to my age I really shouldn't be playing around with this money, and will desperately need it.

When I talk to brokers, they just see a pretty helpless lady and take advantage.

Can anyone here please advise me what you would do?

Every so thankful!

[Ariadne22]

GNMA funds provide returns of about 5-6% with little volatility. Fidelity, Vanguard, TRowePrice all offer them. Short-term while I'm trying to decide what to do next, I have a good bit of money in the Summit GNMA at TRowe - PRSUX. Under 25K, you can invest in their PRGMX. Interest is credited monthly and reinvested in new shares.

http://www3.troweprice.com/fb2/fbkwe...o?ticker=PRGMX

Because you really need to grow your money and hopefully will be working at least another ten years, PRPFX is a better fund for you, imo, because returns have been stellar. It is a low volatility fund, capital preservation being primary. Past ten years average returns are over 10%. Their bad year in 2008 was minor at -8.36% v. 30-45% drops in many other funds. You really must IGNORE the bad patches in the market if you hope to have any money at all in 10 or 15 years.

2001 - 3.76%
2002 - 14.31%
2003 - 20.44%
2004 - 12.04%
2005 - 07.62%
2006 - 13.82%
2007 - 12.43%
2008 - (8.36)%
2009 - 19.08%
2010 - 19.31%

Permanent Portfolio - PRPFX

The Permanent Portfolio Family of Funds

The Permanent Portfolio Family of Funds

You, also, of course, need to try to save, save, save for the next 10-15 years like a mad fool. The small amount of capital you have alarms me. For future savings, set up an IRA and deposit regularly into it as well as your firm 401k. Deposits are tax-deferred. You need every dollar you can save now.

This is just a start, of course. Since you have virtually no risk tolerance, you would be better served to choose one or two good funds, make regular deposits tax-deferred and not watch day-to-day fluctuations.

Hopefully others here will also offer suggestions.

[a34dadsf]

First off, EVERYTHING is an investment and with that it has the associated risks and rewards. There is no such thing as a, "safe" investment. Don't believe that. Even if you put it into cash, there is still risk of inflation. Just imagine if you stay in cash and only get 1-2% on your money meanwhile everything around you (food, gas, housing etc.) is going up 5-6%/years. The price of those commodities isn't really going up, rather the dollar is losing value. In reality you were losing 3-4% per year. Very confusing but most are fooled into thinking that, "hey, at least I made 1-2%" In reality, they were losing 3-4%/year!

Since you have no clue on investing, just stick to those target retirement funds like target retirement 2020 or whatever. Just stick it in there, set it and forget it. If you make money, great. If you lose money, don't cry about. Just live it and move on.

Oh and if you are mad that you lost 3k. I'd like to tell you that I lost over 100k in last week's slide, just imagine that! but I think we are at a low point so I am totally not worried. I'll make the money back and then some.

[darrell2525]

I don't know much about funds, I am an individual stock investor. I only have a 401k and I am 32 years old.

I can only say, trust noone, and only trust whats written in black and white. but i do like the post from Ariadne22.

Nevermind the stock market going up and down, no big deal. 5-10 years from now it will recover. I invest for the long term, don't care what the market is doing now. Only care what the businesses I invest in are doing and how they adjust to the economy.