What would you with $20K?

[gjpure]

Equity Indexed Annuities and Fixed annuities can fit that catagory, as can certain private REITS. I all depends on how you define risk, but EVERY investment holds some degree of risk, it just depends on if you are comfortable with that risk or not.


The other guy's idea on being a financial planning to only poker players is an interesting one. But I wonder: How do you know if the "niche" is big enough, and how would you find your clients and convince them to start investing their money. Certainly, many are making a lot of money at a young age, but they also have school loans, debts, bills, etc. that dissapate later in life. So I wonder how profitable it would be to a financial planner. Regardless, however, if you have any significant amount of cash just sitting in a bank and are not sure what to do with it, interview several financial planners and go with one that makes sense and with whom you feel comfortable. After all, it's your money. You may have bluffed it fair and square!

[Sniper]

Equity Indexed Annuities are fairly complex investment vehicles... a definately "read the fine print" before locking your money away type of investment.

One example warning on these investments

SEC comments on Equity Index Annuities

NASD Alert on Equity Indexed Annuities

CNN Money article

[buffett]

Wonderful post, Sniper. I love it when we agree on something, and I especiallly like situations like this one where I vehemently agree with you.

Here's my favorite quote from your links: "the high commissions equity-indexed annuities offer create a huge conflict of interest for the advisor. If you were an advisor and had the choice of making 2% or 15% on an account, which would you choose? Is it any wonder equity-indexed annuities have become so popular?"