Good morning all,
My 65 year old FIL inherited some cash a few years back and last year invested in an Active Indexed Annuity from North American (Charter Plus if it matters?) and has asked me my opinion on how he should reallocate his cash. He got sold on zero downside risk plus a cash bonus added to his principal.
His intention for this is to give it to my kids eventually, so weirdly enough it's in my interest to help him grow it. I honestly think that as uninformed as I am, I am the only one in his orbit who pays any attention to investments or the market and that's why he's asked me. I'd like to help, but this is above me somewhat.
The problem is that I have no idea what some of these funds are (I'm mostly a bogglehead). If they were a fund with a ticker, I could see what the fund is made up of.
He's making a 2 year commitment to this half of the investment the other half is 1 year into its own 2 year cycle (he laddered them). He's 1 year into this and it looks like the penalty to cash out is pretty prohibitive and he's not interested. Here's the 2 year "menu":
* **Barclays Transitions 12 VC Index™ Strategy Term 2025 - 2027** 80% Par Rate
* **Barclays Transitions 6 VC Index™ Strategy Term 2024 - 2026** 160% Par Rate
* **Barclays Transitions 6 VC Index™ Strategy Term 2025 - 2027** 160% Par Rate
* **Fidelity Multifactor Yield Index 5% ER Strategy Term 2025 - 2027** 165% Par Rate
* **Fidelity Multifactor Yield Index 5% ER w/0.95% Fee\* Strategy Term 2025 - 2027** 230% Par Rate
* **Goldman Sachs Equity TimeX Index Strategy Term 2024 - 2026** 90% Par Rate
* **Goldman Sachs Equity TimeX Index Strategy Term 2025 - 2027** 90% Par Rate
* **Morgan Stanley Dynamic Global Strategy Term 2024 - 2026** 165% Par Rate
* **Morgan Stanley Dynamic Global Strategy Term 2025 - 2027** 165% Par Rate
* **Morgan Stanley Dynamic Global w/ 0.95% Fee\* Strategy Term 2025 - 2027** 230% Par Rate
* **S&P 500® Strategy Term 2025 - 2027** 40% Par Rate
* **S&P MARC 5% (Multi-Asset Risk Control) Strategy Term 2025 - 2027** 165% Par Rate
My understanding is that this is guaranteed not to lose any principal and the worst thing that could happen is that it simply doesn't gain any value.
Any input on which fund(s) to invest in would be greatly appreciated. Thank you all.