Ask The Experts: Am I Getting Bad Financial Advice?

I had a 401K from a company that I left about a year ago and it was worth about $450,000. I cashed out of it in Feb this year and there is about $300,000 left. I went to a financial guy and he recommended that I invest $150,000 into Life Settlements, $100,000 into a Real Estate Reit and $50,000 into a Franklin Bond Fund.

Since this is the only retirement money I have I'm really scared and haven't pulled the trigger yet. I have two $150,000 checks in my posession. How do you think this sounds, is it a good idea? Thanks -Gary

Gary - you haven't pulled the trigger for a reason and it's probabaly because your "financial guy" is a salesperson, not a trusted advisor. Trust your gut. These three products provide little or no diversification and are likely high commission-based products. Sounds like a crap (my technical term) recommendation to me.

Find yourself a fee-based or fee-only Certified Financial Planner professional advisor with at least 10 years of experience here who won't sell you high-commision products. You need advice, not products. Also read this post on finding an advisor.

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Bill Losey, CFP®, CSA, America's Retirement Strategist®, is the resident retirement planning expert on CNBC’s “On the Money”. He has been named one of America’s Top Financial Planners and is the author of Retire in a Weekend! The Baby Boomer’s Guide to Making Work Optional. He also publishes Retirement Intelligence, a free weekly award-winning newsletter. Bill can be reached online at