I apologize if this is covered somewhere, but I could not seem to find many helpful posts.
My dad just retired earlier this year (58 years old) and is in the process of balancing his accounts. He receives a pension from his work, but also has some money in a 401k. I do not know the specifics, except he is obviously worried about a potential market crash and is unsure of what to do with this money. In the past, he has tried to time the market and I fear he took a lot out after the 2008 crash and waited too long to put back in. I do not want to pry too much into his personal finances, but when we talk about it, he says he currently has his investments in a stable fund. Whether that is a cash fund, or a very low return/conservative fund, I am not sure.
He went to see a financial adviser with his credit union and they wanted to set him up in an actively managed mutual fund which carries a 1% fee, plus a 2% fee for the financial adviser, and a $750/year fee to manage all of his accounts. These seems like a huge rip off to me. I told him that he would have better results placing his money in some sort of retirement index fund with low fees of less than 1% and drawing 4% out per year himself. However, all my experience in retirement planning has been in growing your investments and not actually in protecting them after retirement. Am I correct that his best option is to put all of his money in the Vanguard Tartget Income Fund (VTINX) https://investor.vanguard.com/mutual-funds/profile/VTINX or an equivalent fund from another company? He currently has an account with T. Rowe Price. Any other suggestions?
Submitted October 10, 2018 at 09:24AM by merb2 https://ift.tt/2IOMLhF
