How about a life insurance policy in case Leo survives you ?Originally Posted by cdnmatt
How about a life insurance policy in case Leo survives you ?
Joe552, an annuity will give you a set amount for life and, perhaps, to an heir for a period of time. Annuities are very conservative and pay a hefty commission to those selling the annuity. One needs to check the stability and track record of the company selling the annuity.
I put my retirement lump sum into Vanguard funds.
matts' posts get weirder and weirder.
ggobob, thanks for your message, only some of which I understood. I'd never heard of these Vanguard funds till Matt mentioned them, and still have no idea what they are.
Hitchhiking's more of a challenge on the road less travelled.
Vanguard funds diversify against the top performing companies in the world. For example, Vanguard 500 World fund invests its money into the top 500 performing companies in the world. They were created over 40 years ago as a simple, easy, safe investment vehicle with low management fees.
Basically, they're for stupid people like me who have no clue about the markets, nor any desire to learn them. As long as the top 500 performing companies out there continue to collectively churn a profit, then you will too. Short of a nuclear holocaust followed by worldwide economic depression, you're pretty much guaranteed to see a decent return with Vanguard.
Include me in the "stupid people"
Sorry but I don't even understand the language. So when my pension kicks in in 3 years time, I can take €3000 as a cash lump sun, are you suggesting I put the other €25000 in a Vulcan fund? I have no idea what \i just wrote.
Hitchhiking's more of a challenge on the road less travelled.
The safest retirement investment is an "indexed annuity" where the company promises to pay you a fixed amount, increasing with the CPI (inflation) until you die. Unfortunately, their payments are dismal - the company must cover their risks for many years and make a profit. Like "defined benefit" pensions, they have a huge downside risk for the issuer.
Better to take the risk yourself and invest in an index fund (eg: Vanguard).
Sorry if I come across as a bit dim. But this conversation is really useful. So i get €3000 as a lump sum. The rest to be invested. Vulcan funds are my best bet for the 250000 I'm investing?
Hitchhiking's more of a challenge on the road less travelled.
Are we really talking about a 95,000 bt investment? The idea that a fund will give an annual return of 20-25 percent and still be classed as safe is ludicrous. My advice would be to be happy with the current 4 percent.
christianpfc (November 18th, 2017)
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