Reply To: scared of stock market, should I stick with the advise of financial adviser?
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Hi, Mr. Johnson. I’ve been meeting with a financial advisor at the local bank that I have been doing business with for perhaps thirty years. Discussing annuities. However, it dawned on me last night (almost wrote you in the middle of the night) that you encouraged investing in INSURED SAVINGS at the bank. Whoa! I am now concerned I may be jumping off the deep end again too quickly. That financial advisor is working on paperwork, but I have not signed anything yet. Yesterday, a different financial advisor (that I met in April through my CPA) contacted me about my stock market money. It sounded like he freaked because I was willing to get annuities that paid ‘so little’ (five year liquid fixed annuity ROP at 2.05% for about half the money in my bank money market account and a seven year liquid fixed annuity ROP at 2.55% for the money in the stock market.) He is confident he can get more money through one of his annuities and argues that the bank’s financial advisor won’t be around in a year. He also argues that if in an emergency I have to take out my money from the liquid ROP I would have charges to pay. My bank advisor specifically said and wrote down “no charges for ROP.” Please help me again. I now am concerned you were suggesting some kind of insured savings at the bank INSTEAD of annuities. I do not have any idea what insured savings at the bank are available. I have no Roth IRAs. My money market pays .10%. Can you clarify the direction you meant by ‘insured savings’ at the bank. Also, I am thinking (but not sure) the annuities are insured only through the insurance company. Bank insures through FDIC. (By the way is the money insured by FDIC up to $100,000 per account or $150,000. My school-time memory was $150,000 but my kids say otherwise.) Thanks again for your past guidance. My biggest concern is the safety of what I have.