Quote:
Originally Posted by jimbo2012
He spoke to Vanguard, since he doesn't need tax deferred or exempt they said mutual funds or stocks/bonds.
They can setup an automatic withdrawal, of say his $200 a month in fact they said it can $50 a week.
The better returns are about 12% per year.
But he said it sounded like he was on his own as to which funds to select.
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They are prohibited from making recommendations on what funds to select. They can make broad recommendations, but not specific, because if they made specific recommendations and they turned out poorly, they would be liable. Let's be honest here, your cousin will not become wealthy by starting his nestegg at age 60 with $200 a month. However, it is better than doing nothing and by dollar cost averaging he should see a nice return. 12% is an agressive assumption, and certainly not an expected return. Something is better than nothing so he is thinking correctly, just don't expect unrealistic results.