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Alpine Dynamic Dividend Institutional Message Board

  • jacal55525 jacal55525 Sep 8, 2010 11:53 PM Flag

    Need some good advice, please.....

    I posted about this a while ago, and didn't take the good advice I was given by the posters here and ended up making a mistake by doing nothing with my Mom's annuity and it lost money over the last year (the cost of maintaining her annuity is more than it's yielding in a money market fund and her account has a $500 deficit for the past year).

    Our Fidelity rep is pushing us to put part of Mom's annuity in a 5 year Met Life annuity at 3%, with surrender charges. I cannot see doing that at Mom's age of 81, and the reason we switched to Fidelity's annuity in the first place when Mom's annuities came due is because it had no surrender charges in case she needed the money. Additionally, I really don't want to lock up Mom's money for 5 years at 3%, but the Fidelity rep said no matter if the yields on other investments go up or down, we would have the guaranteed money for five years.

    When I suggested to the Fidelity rep that Pimco Low Duration Bond fund looked more attractive to me than the Met Life annuity, he said we should consider it, but then he kept going back to the 3% annuity and suggested that we sign the form for the state to get information on the annuity, so we did. He claims Fidelity is getting no commissions on selling the annuity.

    Last year when I spoke to the rep about Mom's annuity, I told him I was thinking about putting some of the annuity in Fidelity's Select Utility Fund, put the rep talked me out of it saying it was too risky, but it ended up yielding almost 9% in the past year, and when I brought it up today, he is still saying it's too risky!

    What do you smart investors think of an investment of half Pimco Low Duration Bond fund and half utilities? I am open to any other suggestions for Mom's annuity so she doesn't continue to lose money. I figured if the interest rates start to creep up, I can always take her money out of the bond fund and put it back in the money market, but the Fidelity rep told me I shouldn't try to time the market when I suggested that. I would be happy if Mom's annuity just broke even at this point, instead of losing money. I told the rep that I wanted to wait until after Election Day to make any decisions, but he said even if the Republicans take over the House, chances are the market will still be volatile.

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    • Yes, some VIP funds are listed on Yahoo's financial lookup; but to be sure that I have the correct fund, I need the ticker symbol (which is unique to each fund).

    • Thanks so much for getting back to me, I'll need to look them up, I think some of the funds are exclusively for Fidelity's annuity (VIP funds) but act similar to funds from other fund families, I don't know if the VIP funds can be looked up on Yahoo finance, or a similar fund from another fund family would need to be tracked to get similar data to give me an idea how the Fidelity fund might perform in the futute. I'll have to find out.

      I know the Pimco bond funds in the anuuity are from Pimco, not Fidelity.

    • I need the stock/mutual fund ticker symbols to look up history data. Unfortunately, some stocks and MF's have similar names that confuse Yahoo Finance's lookup. Can you list the fund name AND its ticker symbol?

    • OK, let me get back to you on those choices.

    • >>the pres has little effect anymore

      I sure hope that isn't the case. It has been true for the last few Presidents only because they were not leaders with vision AND the ability to make vision into reality. A Lincoln or Roosevelt or Washington today would be able to lead this country, much the same as they did many years ago. While it is true that values have changed a lot since the days of Washington, Lincoln and Roosevelt, some of that has to do with lost faith by the electorate with politicians in general. That could change with the right leader of vision and implementation.

    • alw59saw (I screwed up your screen name on the prior post, sorry!) Here are the best performing Fidelity funds for the last 3 years (all positive returns) available in Mom's sub-account:

      VIP Consumer Staples .88%
      VIP Fund MGR 20 1.46%
      VIP High Income 4.79%
      VIP Investment Grade Bond 6.33%
      VIP Money Market .69%
      VIP Strategic Income 7.83%
      VIP Tech .45%

      Here are the best performing non-Fidelity funds for the last three years, all positive returns:

      Lazard - Retirement Emerging Market Equity .97%
      Morgan Stanley - Emerging Market Debt 7.34%

    • alsw: Back to Mom's annuity sub-accounts, I went away a few times and had to delay my research, three PIMCO bond funds are available, date of inception for all is 9/30/2009.

      Pimco Low Duration Short-term Bond up 5.38% - 1 yr.
      Pimco Real Return (inflation protected) up 10.79% - 1 yr.
      Pimco Total Return (intermediate term) up 8.98% - 1 yr.

      I'm going to research the stock funds also, I'm going to look at the 3 yr return to see which funds didn't get killed in 2008, I figure that's a good place to start. Additionally, I keep your strategy in mind about investing below the 200 day moving average to minimize risk. Do you think I should analyze the other funds based on 3 yr performance and the moving average? I guess most of the funds will be above the 200 day MA because the market had a good Sept., and I assume you have other criteria in your patented trend chart strategy that you use for analyzation.

      My objective is only to make up the $500 she is losing from annuity fees and being invested in the money market fund, so if I had to go with a $10,000 investment in the Pimco Real Return for example, (and leave the rest of her annuity in the money market fund) provided Real Return has the same performance next year and she can get about $1,000 to cover her loss from the annuity fees, I would be happy with that, while waiting for the money market yields to go back up.

      A talking head on CNBC was saying to invest in the short-term bonds.

      What do you think of Mom just risking $10,000 in one of the Pimco bond funds above to cover her MM losses?


    • you should read nixon's book on the presidency. none of them can do much like they could back in FDR's day and prior.

      FDR and Teddy R did lots of stuff, because the populace votes were so dead set against the patricians who had been raping the middle class for lots of years prior to their watches. Teddy got rid of child labor, and enacted national parks, built canals etc....

      those were far different dayz than today.....

      W did get us into some serious deficits and lots of senseless wars. his dad did too. Clinton was hog tied with stupid crap. Reagan was a bumbler, Carter was worse.

      the pres has little effect anymore.

    • My own estimate is that, because of this s-l-o-w-l-y recovering economy and a lack-luster administration in Washington, ADVDX won't be able to increase the dividend before 2013 (after the Nov. 2012 elections --- it'll take a new President to put us back on course). Hang in there.

    • Thanks alw59saw, I will continue to work on the fund choices this weekend. I already backed up my Mom's investment in ADVDX with my money so she would feel more comfortable with it, I thought she would be very disappointed with the smaller monthly dividend checks from ADVDX, but she took it in stride, and I told her the decreased dividend won't last forever!

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