I bought this years ago. I don't know how to keep up with what's doing better than other funds. I do have Vanguard 401k at work. I can open new accts. Should i leave this acct as is, or sell and move to vanguard ,to some acct? I have10,727.65 in thisPrimeElite acct. What's your opinion? Thanks.
Should I cash out PrimeEliteIV , go to vanguard?
- Thread starter daves66nova
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I would compare the five year performance of each and decide, based on the results. Ed
Of course, you know that nobody can predict the way to go. I'm not a young guy and I've been investing from the very start of my working career in the mid-late 1980's, with a good basis in solid and established companies. I've never gotten lucky and made a fortune in anything. Lost a lot of money in the 1990's and 2008 downturns. Much of which never recovered. My GM stock went to 0 and my GE stock plummeted and never recovered. The various funds have provided acceptable returns and my broker takes his cut.
In the end, I'll simply state that the money I've invested from the late 1980's and on has done better than inflation, after taxes. But not so much so that I've been able to, say, make major purchases without affecting my retirement nest egg.
In my case, earning more money through working has been easier than making money via investing.
In the end, I'll simply state that the money I've invested from the late 1980's and on has done better than inflation, after taxes. But not so much so that I've been able to, say, make major purchases without affecting my retirement nest egg.
In my case, earning more money through working has been easier than making money via investing.
JHZR2
Staff member
I cant say I know much of anything on what PrimeEliteIV is. Is it an account/broker/fund/something else???
At the end of the day, performance and fees are the major determinants. There is something to be said about convenience and not having a million accounts and logins, especially since this account has very little money, and youre probably not getting any real perks for it.
Vanguard is good low cost investing, and if you already have an account, can you roll this into your 401k (we also dont know if it is a taxable account or what). You can likely find a good index or similar fund, if you know your strategy and what youre looking for. Right now, the market is high, anyone's call if and how far it might correct. But missing the few best (and worst) days can significantly reduce your overall returns...
At the end of the day, performance and fees are the major determinants. There is something to be said about convenience and not having a million accounts and logins, especially since this account has very little money, and youre probably not getting any real perks for it.
Vanguard is good low cost investing, and if you already have an account, can you roll this into your 401k (we also dont know if it is a taxable account or what). You can likely find a good index or similar fund, if you know your strategy and what youre looking for. Right now, the market is high, anyone's call if and how far it might correct. But missing the few best (and worst) days can significantly reduce your overall returns...
It appears to be a variable annuity. Here are links for someone else more knowledgeable to assess:
www.brighthousefinancial.com
I've been studying about annuities the past weeks and it is difficult to overcome confirmation bias. If you are a Dave Ramsey disciple you will gravitate towards the "annuities are bad" camp and if you are risk averse you will gravitate towards annuities are o.k..
Realize that annuities are insurance and that they can be a good choice for some people. Be careful to read the pros and cons from many sources and make your own decision for your own circumstances. I.E., don't be an internet sheep.
Prospectus and Performance Reports
www.brighthousefinancial.com
I've been studying about annuities the past weeks and it is difficult to overcome confirmation bias. If you are a Dave Ramsey disciple you will gravitate towards the "annuities are bad" camp and if you are risk averse you will gravitate towards annuities are o.k..
Realize that annuities are insurance and that they can be a good choice for some people. Be careful to read the pros and cons from many sources and make your own decision for your own circumstances. I.E., don't be an internet sheep.
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For people who don't want to mess a lot with investments or investing, Vanguard has a set of dedicated 'retirement' plans. You pick the one that is closest to your expected retirement year, and they automatically adjust it so that the fund takes less and less risk, the closer it get to that retirement year.
For example, here is their information on the Retirement 2050 fund, targeted for someone who expects to retire in 30 years.
investor.vanguard.com
For example, here is their information on the Retirement 2050 fund, targeted for someone who expects to retire in 30 years.
Vanguard Mutual Fund Profile | Vanguard
Google says PrimeEliteIV is some sort of annuity from MetLife. Sounds low risk. We should all have some money in a low risk investment. Why did you invest in PrimeEliteIV to begin with? What were your goals then and have they changed since?
Can't answer your question without knowing more about your goals and finances. How close to retirement are you? How much risk do you want to take on with this $10k? Don't assume that all of your investments need to have the same risk profile, some can have more and some less. The type of retirement plan mentioned by mrsilv04 above is great for set it and forget it. They balance risk profiles and get safer as you approach retirement.
If you have 20+ years to retirement and another 30+ years until you'll need this money, you might want to move it something riskier with higher potential for growth. If you are retiring in 2 years at 60 and need to pay your own way until SS kicks in at 62 and you're counting on this money to see you through, you probably want to let it be.
Can't answer your question without knowing more about your goals and finances. How close to retirement are you? How much risk do you want to take on with this $10k? Don't assume that all of your investments need to have the same risk profile, some can have more and some less. The type of retirement plan mentioned by mrsilv04 above is great for set it and forget it. They balance risk profiles and get safer as you approach retirement.
If you have 20+ years to retirement and another 30+ years until you'll need this money, you might want to move it something riskier with higher potential for growth. If you are retiring in 2 years at 60 and need to pay your own way until SS kicks in at 62 and you're counting on this money to see you through, you probably want to let it be.
Low-cost, index funds. S&P 500 or Total US Market is all you need. Add in some bonds depending on risk tolerance / age / retirement date.
All good firms offer them now, with some cheaper than Vanguard (Vanguard is the one who started it all - Jack Bogle). They should be fee free to purchase and sell (but don't sell until you need them in retirement). Buy and hold.
OP - do you get a 401k match? You should be contributing whatever amount gets you that - it is free money, a guaranteed 100% return.
If no match, you should still invest as much as you can - remember it will lower your taxable income. $1 into a 401k is only +/- 70 cents off your paycheck.
You can rollover this account into your 401k and select a Target date fund as others have mentioned. January is a good time to start.
All good firms offer them now, with some cheaper than Vanguard (Vanguard is the one who started it all - Jack Bogle). They should be fee free to purchase and sell (but don't sell until you need them in retirement). Buy and hold.
OP - do you get a 401k match? You should be contributing whatever amount gets you that - it is free money, a guaranteed 100% return.
If no match, you should still invest as much as you can - remember it will lower your taxable income. $1 into a 401k is only +/- 70 cents off your paycheck.
You can rollover this account into your 401k and select a Target date fund as others have mentioned. January is a good time to start.
daves66nova,
The problem with an annuity is that some people get into an annuity and then need money to cover an unexpected problem and they get penalized for withdrawing their money too soon.
I agree it’s safer to just have Vanguard S&P 500 fund.
I‘ve posted in the past my Vanguard mix of funds that has done well the past 20 years, nothing too crazy or risky...... just a boring and safe mix of quality funds.
How old are you and what age do you plan on retiring ?
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The problem with an annuity is that some people get into an annuity and then need money to cover an unexpected problem and they get penalized for withdrawing their money too soon.
I agree it’s safer to just have Vanguard S&P 500 fund.
I‘ve posted in the past my Vanguard mix of funds that has done well the past 20 years, nothing too crazy or risky...... just a boring and safe mix of quality funds.
How old are you and what age do you plan on retiring ?
.
Does the OP go to a financial forum and ask what oil to use??
This forum is one of the last places an informed consumer should go for financial information.
None of these people know OP's personal circumstances, goals, risk tolerance, time horizon, or complete financial picture. Why then, would any of them provide an opinion as to what financial decision or potential decision OP should make? The ignorance boggles the mind.
This forum is one of the last places an informed consumer should go for financial information.
None of these people know OP's personal circumstances, goals, risk tolerance, time horizon, or complete financial picture. Why then, would any of them provide an opinion as to what financial decision or potential decision OP should make? The ignorance boggles the mind.
Imp4 - This is the General and Off Topic section of an oil forum. The question is appropriate to this section.
There are several members of this board with investment experience and portfolios that exceed $1 million.
Why wouldn’t the OP want to hear from experienced investors?
Does an understanding of oil preclude any financial acumen in your opinion?
There are several members of this board with investment experience and portfolios that exceed $1 million.
Why wouldn’t the OP want to hear from experienced investors?
Does an understanding of oil preclude any financial acumen in your opinion?
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I don't know your specific circumstances but I have been in Vanguard Wellington's Admiral Shares for 21 years. It has been an excellent fund since it's inception which IIRC was 1920's? What really helps your compounding interest over time is the very low fees Vanguard charges. Just me, but before I even dig into all the crazy calculations of a fund I check fees first. Some funds fees are soooo ridiculous you can see it's not for you before you waste any time.
“cashing out” an annuity may create taxable events and penalties if under 60yo. transfers are more protected. doing either may incur surrender penalites from the annuity issuer. after analysis i might decide to simply leave my annuity intact, not add more funds, as long as its performance minus fees is ok, i.e. perhaps 4-5% above the annual inflation rate. when i hit 60 i likely would empty it over a few years to avoid a full-on tax bite and use proceeds to pay down a mortgage before full retirement.
and there is alot correct about asking like minded fellows, who one may find on bitog, about money. all of us have some, worked hard to get it and seek value/performance when spending it. there are even questions about cars on bogleheads (though subaru seems to be the default boglehead car of choice).
dave66nova, vanguard has an extensive customer help desk. while vg won’t dispense tax advice, vg freely gives lots of useful investing info. give vg a call since you are a retirement account holder there (your account belongs to you, not your employer). vg also offers its own annuity but its minimum of $25k may preclude a direct transfer of your $10k, surrender charges aside. your federally insured credit union may be another good source of financial advice (and decent, low priced products. if you aren’t a c.u. member please join one, usual entry deposit is only $5. if you are a veteran, navy federal is a good one).
dave66nova, vanguard has an extensive customer help desk. while vg won’t dispense tax advice, vg freely gives lots of useful investing info. give vg a call since you are a retirement account holder there (your account belongs to you, not your employer). vg also offers its own annuity but its minimum of $25k may preclude a direct transfer of your $10k, surrender charges aside. your federally insured credit union may be another good source of financial advice (and decent, low priced products. if you aren’t a c.u. member please join one, usual entry deposit is only $5. if you are a veteran, navy federal is a good one).
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Why do you care where i go, what i do???? Is it any of your business? It's free advice, plain and simple, from people who have invested. This IGNORANCE, boggles MY mind.....
Awesome that you get a match at all - many do not. Make sure that you always, always, always get the match.
As for 401k fund options, look for a broad-market index fund - either S&P500 or US Total Stock or even one of the target date funds mentioned above (which will include bonds for stability), just look for a low ER and an index fund that tracks the market. ER = Expense Ratio. Sometimes your 401k provider tacks on fees too, but since you get a match, it will always be better to invest with your 401k to get the match than to do your own IRA.
Also, as noted above, you shouldn't "cash out" the current investment, but rather do a rollover into your 401k or an IRA - this avoids it being a taxable event.
As for 401k fund options, look for a broad-market index fund - either S&P500 or US Total Stock or even one of the target date funds mentioned above (which will include bonds for stability), just look for a low ER and an index fund that tracks the market. ER = Expense Ratio. Sometimes your 401k provider tacks on fees too, but since you get a match, it will always be better to invest with your 401k to get the match than to do your own IRA.
Also, as noted above, you shouldn't "cash out" the current investment, but rather do a rollover into your 401k or an IRA - this avoids it being a taxable event.
I guess I figured that since you posted to an internet message board that you were looking for responses.
I don't particularly care where you go for financial advice but if you are going to come to a motor oil themed web site for that financial advice I'm going to continue to add my opinion to the discussion.
Your free advice is worth exactly what you paid for it because it comes from people that don't have knowledge of your background, goals, risk tolerance, timeline, et cetera.
Without that information, the responses that you get, while well intended (and sometimes from people that are quite financially successful themselves), is by definition deficient and uninformed.
Could it turn out to be good advice? Sure.
But it could just as likely turn out to be the opposite given that the purveyors of said opinions are unaware of your complete financial picture.
The fact that OP is posting here asking for financial insight sets off alarm bells in and of itself.
Typical well informed investors would seek internet opinions from many alternate sources before coming here.
This sets off an alarm bell that the OP may not be financially savvy, which makes the advice here all that much more fraught with danger because the OP likely does not have the financial acumen to determine the best decision given the number of opinions provided.
Please do not take this as a personal attack as it is not intended to be so.
The whole point of the post is to hopefully steer the OP in the direction of the best possible financial outcome.
Cheers!!!
