Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Insurance and investment costs
Old 01-27-2014, 06:25 PM   #1
Confused about dryer sheets
 
Join Date: Jan 2014
Posts: 4
Insurance and investment costs

Hi I'm kmm3n1 and I'm planning on retiring next January. I will be 50 and my wife 48. We have very little debt but 1 still in college. We will be drawing our investment money early with no penalty via a 72t. Our firecalc success rate was 100% drawing $250k a year for 30 years. The two things I'm concerned about are what percentage do we pay a financial advisor and what will insurance cost?
__________________

__________________
kmm3n1 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-27-2014, 07:12 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,899
I think most here would advise that you do not pay an financial adviser. A quick search here will bring up multiple discussions on the topic.
__________________

__________________
Yes, I have achieved work / life balance.
travelover is online now   Reply With Quote
Old 01-27-2014, 07:30 PM   #3
Recycles dryer sheets
galeno's Avatar
 
Join Date: Nov 2002
Location: Alajuela, Costa Rica
Posts: 220
You're talking about a starting portfolio value of $6.74M. Thus every 1% per year you save in portfolio expenses = a nice new luxury car for you or a loved one. Why give it to an advisor?

My recommendation for you is to use a 40/60 port using 40% VT + 50% BND + 10% MMF and enjoy life.
__________________
AA = 60/35/5. Expected CAGR = 5.7%. GSD (5y) = 7.8%. USD inflation (10 y) = 1.8%. AWR = 3.0%. TER = 0.5%. Net Port Yield = 1.7%. Term = 36 yr. FI Duration = 4.9 yr. Portfolio survival probability = 86%.
galeno is offline   Reply With Quote
Old 01-27-2014, 07:38 PM   #4
Thinks s/he gets paid by the post
Dash man's Avatar
 
Join Date: Mar 2013
Location: Limerick
Posts: 1,671
Quote:
Originally Posted by kmm3n1 View Post
Hi I'm kmm3n1 and I'm planning on retiring next January. I will be 50 and my wife 48. We have very little debt but 1 still in college. We will be drawing our investment money early with no penalty via a 72t. Our firecalc success rate was 100% drawing $250k a year for 30 years. The two things I'm concerned about are what percentage do we pay a financial advisor and what will insurance cost?
You can go to eInsurance.com to get a quote on health/dental insurance. No need to go to the government site unless you expect to get a subsidy, which I assume you wouldn't given the number you provided.
__________________
Dash man is offline   Reply With Quote
Old 01-27-2014, 09:03 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
Quote:
Originally Posted by galeno View Post
You're talking about a starting portfolio value of $6.74M. Thus every 1% per year you save in portfolio expenses = a nice new luxury car for you or a loved one. Why give it to an advisor?

My recommendation for you is to use a 40/60 port using 40% VT + 50% BND + 10% MMF and enjoy life.
And all in a retirement account that requires a 72t? I'm guessing we missed a decimal point again.

Anyway, kmm3n1, 1% of your portfolio per year is the maximum you should pay. And you may notice that at a 4% SWR you'll be giving your FA 25% of your yearly income. So if you know enough to know your FA is doing a good job, you'd be better off creating a portfolio using index funds that only charge 0.1%.

Your best move might be to have a one-time only consult with a fee-only FA to get you started with some assurance. Still expensive, but it could give you and a spouse a warm fuzzy.



__________________
Animorph is offline   Reply With Quote
Old 01-27-2014, 10:07 PM   #6
Confused about dryer sheets
 
Join Date: Jan 2014
Posts: 4
Thanks for the advice
__________________

__________________
kmm3n1 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Healthcare Insurance Costs in Texas and the 2010 Law DFW_M5 FIRE Related Public Policy 14 01-18-2012 12:25 PM
health insurance and effect on increased health care costs Martha Other topics 9 08-08-2006 02:54 PM
Estimating future health insurance costs Roger_R FIRE and Money 1 02-14-2005 06:57 PM
ER Costs Investment Hedges familywu FIRE and Money 33 08-23-2004 08:58 PM
Cutting Investment Costs azanon FIRE and Money 15 07-13-2004 07:51 PM

 

 
All times are GMT -6. The time now is 12:41 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.