Question Docs99, Thanks for your response. The questions you ask make good sense to me and I will look them up. They also seem to be questions to ask about any investment or working with a planner. I didn't see any questions that would be specifically relevant to investing in an Accumulator Fund. Are there particular quesions I should be asking about this kind of fund? To be guaranteed 6% interest plus have the possibility of agressive growth seems to good to be true. Is there something particular I should be watching out for with an Accumulator Fund?
Thanks,
Becca
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Followup To
Question -
Recently I started seeing a financial planner. He's suggesting that I invest part of my investment (probably about 1/4 of my total investment) in an Accumulator Fund. I had never heard of these. It's guaranteed to earn me 6% interest plus it's aggressive. I did a google search to learn more about these kinds of funds because it seem to good to be true. I'm having trouble making sense of them. Do I need to be concerned about investing in an Accumulator Fund. Or are there particular questions I should be asking him?
Thanks for your help.
Becca
Answer -
Of course. His job is to furnish you with as much info as possible so that you can make a decision. He is not deciding for you. Did he give you a prospectus for the fund? Even though past performance won't guarantee future returns you may want to ask about the historical performance, changes in fund managers, and , tax implications. You may want to have a meeting with your tax advisor and your financial planner. Also, make sure the person is duly licensed and has all the licenses. You may check with the company he is affiliated too. Also, you may want to ask your tax advisor about the tax implications of liquidating part of your current investments to invest in something different or new. I cannot furnish you with financial advice, however, you may want to ask this person how long he has been in the business and how big portfolios his clients have. Good luck.
Answer The specifics questions on the fund will arise from reading the prospectus. Do you have one? Did the financial person provided you with one? Who is behind the Accumulator Fund? There are thousands of funds out there. This is the first time I hear about it. Would you please tell me the name of the financial institution behind it? The questions I suggested are valid for any type of fund. Now, the 6% return is net of taxes?
