What companies in the stock market are the most environmentally responsible?

[sweetana3]

CathyA, you have gotten good warnings and should beware. Salesmen abound out there whether strangers, family members, or trusted individuals (ministers, doctors, etc.) I saw a lot of the fallout while working at the IRS and it was pretty sad.

If you really want advice, find a fee based (not salesman) qualified financial adviser and never ever invest your hard earned money in something you do not totally understand.

We have a good chunk of our personally managed portfolio in the market but all in low fee index funds. We don't buy and sell. A good chunk is in cash which is my insurance policy. You need good household money management and family financial goals to work on. Beware all the media about easy money or safe money or such. They prey on those who don't understand the instruments being discussed and sold.

[bicyclist]

A truly helpful financial advisor will in the first place, lay out some alternatives a little at a time and give you time to consider them in light of what is the most important of your values. If you feel overwhelmed, join the crowd most people feel the same way! But good advisors are first good listeners and not enamoured of one company or type of investment. As the others have said, insurance companies tend to emphasize annuities. There are other whole investment classes that could still make sense. Some perspective can help. I recommend Bernard Malkiel's book "A Random Walk Down Wall Street" as a well written and not very technical book to read about investments, the best single book I have found. Mr. Malkiel taught at Yale and Princeton but you don't have to be business student to benefit from it. The Vangurd Group has many excellent staff people you can talk to over the phone (I am an investor with Vanguard) who don't have a vested interest in selling you one type of investment. They can be very helpful. Dave

[dado potato]

Retired people who receive a defined benefit pension and social security payments are in effect receiving annuities already.

If the current annuity income from pensions and social security is projected to be inadequate for lifestyle expenses (if there is a projected deficit), I would consider a Single Premium Immediate Annuity for 2 joint lives, 100% continuing to the survivor, with no riders. The amount of the monthly payment would be equal the projected deficit in year one of the SPIA. Quotes from 7 to 15 highly rated (by AM Best) insurance companies would determine which company would require the least premium to obtain the desired monthly income. For Quotes I would probably contact "Stan the Annuity Man" Haithcock.


I would categorically not speak to a family member (or a social acquaintance, or an agent in the yellow pages) about investment strategy.

SPIAs are a "commodity". Commissions of 2-4% are paid to "producers", but the buyer does not see the commission. Commissions are imbedded in the quotes obtained from the insurance companies. Shopping around is usually a good idea, because at any point in time some companies (rated the same "A+" or "A" by AM Best) will be more competitive about pricing. Compare apples to identical apples!


After securing a guaranteed income equal to projected lifestyle expenses with annuities (including pensions and social security), I assume there would likely be other investable funds for people who have been thrifty during their working years. In my opinion a reserve consisting of broadly diversified common stocks in an index-type fund potentially offsets inflation, and is lower-risk and lower-fee than other alternatives that can offset inflation. This equity reserve can be there to absorb a major financial shock (uninsured casualty losses, long-term care expenses, etc.). Income from the equity reserve which is not needed for lifestyle expenses can be reinvested in more shares. When the second to die passes away, the remainder of the equity reserve would be part of his/her estate, and there should be provision in the wills about where the wealth should go then.


I understand that Warren Buffett "the great investor" intends that his widow invest 90% in Vanguard's SP500 Stock Index Fund and 10% in an ultra-short term bond fund. It is significant that Bonds and CDs play no role in the intended portfolio. I believe Buffett expects the average annual total return on equities will be greater than on fixed income securities over the long term. "The Oracle of Omaha" understands statistics!


Significantly greater diversification would be possible in Vanguard's Global (Total World) Stock Index Fund, investing in over 7,000 companies rather than 500 big US-based ones.

Nothing herein is to be construed as investment advice. I am stating my personal opinion only.

[eleighj]

Retired people who receive a defined benefit pension and social security payments are in effect receiving annuities already.

If the current annuity income from pensions and social security is projected to be inadequate for lifestyle expenses (if there is a projected deficit), I would consider a Single Premium Immediate Annuity for 2 joint lives, 100% continuing to the survivor, with no riders. The amount of the monthly payment would be equal the projected deficit in year one of the SPIA. Quotes from 7 to 15 highly rated (by AM Best) insurance companies would determine which company would require the least premium to obtain the desired monthly income. For Quotes I would probably contact "Stan the Annuity Man" Haithcock.


I would categorically not speak to a family member (or a social acquaintance, or an agent in the yellow pages) about investment strategy.

SPIAs are a "commodity". Commissions of 2-4% are paid to "producers", but the buyer does not see the commission. Commissions are imbedded in the quotes obtained from the insurance companies. Shopping around is usually a good idea, because at any point in time some companies (rated the same "A+" or "A" by AM Best) will be more competitive about pricing. Compare apples to identical apples!


After securing a guaranteed income equal to projected lifestyle expenses with annuities (including pensions and social security), I assume there would likely be other investable funds for people who have been thrifty during their working years. In my opinion a reserve consisting of broadly diversified common stocks in an index-type fund potentially offsets inflation, and is lower-risk and lower-fee than other alternatives that can offset inflation. This equity reserve can be there to absorb a major financial shock (uninsured casualty losses, long-term care expenses, etc.). Income from the equity reserve which is not needed for lifestyle expenses can be reinvested in more shares. When the second to die passes away, the remainder of the equity reserve would be part of his/her estate, and there should be provision in the wills about where the wealth should go then.


I understand that Warren Buffett "the great investor" intends that his widow invest 90% in Vanguard's SP500 Stock Index Fund and 10% in an ultra-short term bond fund. It is significant that Bonds and CDs play no role in the intended portfolio. I believe Buffett expects the average annual total return on equities will be greater than on fixed income securities over the long term. "The Oracle of Omaha" understands statistics!


Significantly greater diversification would be possible in Vanguard's Global (Total World) Stock Index Fund, investing in over 7,000 companies rather than 500 big US-based ones.

Nothing herein is to be construed as investment advice. I am stating my personal opinion only.

Dado; very well written. My wife and I interviewed over five "Fee Based Only" advisors until we found one that both of us trust. He provides the advice after discussion between the three of us and we make the changes ourselves. He does not have or wants access to our accounts to make the transactions. If there is something we do not understand or are uncomfortable with; we discuss it and come up with a mutually agreeable plan.

Ed