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My company terminates pension plan and gets back the money from DC. We all will get our accrual money and have resposibilities to invest ourself. Going forward, the company cuts down but still gives us 10% pension. However, we will have to choose what, where we invest money. We have choices such cashing out, but paying too high taxes and I don't want to do. We could split the money to invest into 3,4 different places . Give me advices what I should do ? I'm thinking to put part of it to the guarantee fund that is currently 4.15% return. The rest of the money I don't know what I should do to get good return for my retirement for about 25 years in the future.
Thank you in advance.
Three Morningstar Five Star Rated Funds as follows:
PTTRX - Pimco Total Return Fund
VWINX - Vanguard Wellesley Income Fund
Both pretty much set it and forget it funds with low volatility, low expenses, and nice, steady above-average returns at about 7-9%. Your capital should be there when you're ready to retire.
and/or
PRPFX - Permanent Portfolio Fund
Has been a stellar performer for the past ten years due to its currency, gold and treasury investments, returning over 10%. Designed to outwit our idiot politicians and bankers. If the economy of the US and world ever become sane again, PRPFX may revert to a 4-6% return. It's a good fund for these crazy times. Also generally has a very smooth ride - no wild swings w/PRPFX, either.
Target date funds and some index funds have low returns and far more volatility. I wouldn't bother with those at all. jmo.
Last edited by Ariadne22; 09-20-2011 at 11:50 PM..
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Last edited by lifesecurity; 09-21-2011 at 04:05 AM..
My company terminates pension plan and gets back the money from DC. We all will get our accrual money and have resposibilities to invest ourself. Going forward, the company cuts down but still gives us 10% pension. However, we will have to choose what, where we invest money. We have choices such cashing out, but paying too high taxes and I don't want to do. We could split the money to invest into 3,4 different places . Give me advices what I should do ? I'm thinking to put part of it to the guarantee fund that is currently 4.15% return. The rest of the money I don't know what I should do to get good return for my retirement for about 25 years in the future.
Thank you in advance.
I'll assume that your risk tolerance is somewhat aggressive (Its not appropriate to recommend something w/o knowing that....).
Your best bet will be to invest w/a large mutual fund company say from either Fidelity or Vanguard. Stick w/index or passive funds who have the best chance to outperform a majority of their peers in the future (because higher costs is the #1 reason funds don't outperform their respected benchmarks). Stay away from funds or "hot" sectors w/recency bias. Majority of "five star" funds don't stay on top very long...
Your asset allocation should have a nice mix of equities/bonds. DCA and live below your means...If you can sleep at night, you have the right AA mix....good luck!
Thank you for all advices. PTTRX - Pimco Total Return Fund
VWINX - Vanguard Wellesley Income Fund
PRPFX
All these are good . This year, after moving my 401K to Guarantee fund in middle of July, I did not lose any penny when the market has been up and down. I moved 10% out to Bond fund a week ago and make a littel money in Sep.
I think I will do 50/50. Keep 50% of money to guarantee fund and divide the rest to play gamble . God bless me so I could retire earlier, hopefully.
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