Comments on: Investing for Retirement? Use (Don’t Lose) Your Emotions (Part I)

By: Neal

Neal — Wed, 30 Sep 2009 23:33:12 +0000

You are all putting together great ideas…I’m going to do an entire post on this Tuesday.

Keep the ideas flowing!

By: RJ Weiss

RJ Weiss — Wed, 30 Sep 2009 19:30:12 +0000

My 4th option for Denise would be to educate her. Denise’s current risk tolerance is fairly small. Show her a simulation on how far she would likely get with $171,000 in cash including inflation. Hopefully, this will persuade her not to withdraw the money.

Option C is fairly close to where she should have been in the first place so close to retirement. Although, I would have invested in long-term instead of short-term bonds.

By: Evan@myjourneytomillions

Evan@myjourneytomillions — Wed, 30 Sep 2009 17:21:43 +0000

Evolution,

Everyone (most PF Bloggers – not Neal) Rip apart the annuities because of the fees, but those fees might have guaranteed that this client had a lot more than her $120K

By: Evolution of Wealth

Evolution of Wealth — Wed, 30 Sep 2009 16:38:46 +0000

Evan, I have to say I was asking the same questions. An annuity with downside protection might be just what she needs. It would give her market participation with guarantees since she is probably hoping to retire in 10 years or so. Yes there would be extra fees for this. She also just might be willing to pay a little extra for her peace of mind.

By: Evan@myjourneytomillions

Evan@myjourneytomillions — Wed, 30 Sep 2009 16:10:06 +0000

Neal,

At this point, I would have to do something the lines of A & C. I would look to her other assets, does she have a whole life policy that the cash can be used until the market recovers? Does she have an annuities that can provide for the years until the market recovers?

Those products which are normally hated upon on personal finance blogs – could save her.

Kind off topic! but I usually am lol