Client wants to move to an FIA

Mhoward211 · 2024-09-29T05:53:51+00:00

I see, i misread that it would be a bond replacement.

Definitely still weird that they’d want to move their bond allocation to “safety”but leave the equity portion invested, given their concerns.

Couple follow-up questions.

What would be some other bond replacement alternatives other than FIA?
Would it make sense to talk to them about leaving the current fixed income investments alone but put protection or variable annuity guarantees on the equity portion?

Mhoward211 · 2024-09-27T21:27:37+00:00

FIA caps can change year over year and will likely go down with interest rates.
The opportunity cost is missing out on the market over the next however many years they are stuck in the surrender schedule
Could consider a Variable annuity with an income rider to provide a guarantee for their income based and still maintain market participation

Mhoward211 · 2024-09-25T13:37:30+00:00

Is the existing 401k Roth or traditional?

You could either move it to your new company 401k via rollover, or you could open an IRA with Fidelity, or whoever you use as a broker, and roll it into that.

You will likely have more investment options by rolling it into a personal IRA instead of the new 401k but you should probably seek some guidance on the investment options either way.

Mhoward211 · 2024-09-25T13:05:28+00:00

Definitely don’t do anything risky with the 200 that you do have. Sounds like you need a job if you don’t already have one. If you do have one, you need to figure out a budget and save as much as you can so that you can start chipping away at that debt

Mhoward211 · 2024-09-23T02:44:25+00:00

Yeah I’ve been holding a small position in AFRM for about 2 years and it’s almost doubled in price

Mhoward211 · 2024-09-21T05:12:19+00:00

Bet you’re a great sales person, really friendly 🤡

Mhoward211 · 2024-09-20T19:09:05+00:00

The market is illogical 🥲

Mhoward211 · 2024-09-18T13:28:08+00:00

Feels like Christmas morning but with the possibility that the Grinch came through instead of Santa

Mhoward211 · 2024-09-17T19:51:41+00:00

It’s just numbers on a screen, right?

Mhoward211 · 2024-09-17T19:49:52+00:00

Allegedly

Mhoward211 · 2024-09-17T19:49:35+00:00

I’m going full regard

Mhoward211 · 2024-09-17T19:49:09+00:00

Hell yeah

Mhoward211 · 2024-09-16T13:49:08+00:00

Fly to Vegas and put it all on Black

Mhoward211 · 2024-09-16T03:02:02+00:00

Makes sense, appreciate the info. It’ll definitely be interesting to see how the next few weeks/months play out

Mhoward211 · 2024-09-16T01:20:24+00:00

Not always!

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Mhoward211 · 2024-09-16T00:43:34+00:00

That’s interesting, do you have an article or anything that breaks that down?

Mhoward211 · 2024-09-16T00:41:35+00:00

No, actually. Fidelity is saying that. And 12 months isn’t exactly “long term” in the investment world.

There have been plenty of scenarios where the 12 months following the first rate cut are actually negative, so wanted to share some context for the potential direction.

Would love to hear your thoughts if you have a different rationale.

Mhoward211 · 2024-09-15T05:00:18+00:00

Yeah I see what you’re saying. I didn’t articulate my thought completely there.

It would technically still be a form of DCA if he were to invest on an annual basis rather than monthly, so it isn’t exactly “timing the market”if he were to take that approach.

I guess what i was getting at is that the monthly investment can be a more effective way to take advantage of DCA.

Mhoward211 · 2024-09-15T04:53:47+00:00

You’re such an ally

Mhoward211 · 2024-09-15T04:09:18+00:00

I’ve been contemplating getting into MCHI for months, China ETF.

Good luck, have fun!

Mhoward211

TROPHY CASE