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?
Insurance and investment costs
- Thread starter kmm3n1
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travelover
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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- Mar 31, 2007
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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.
galeno
Recycles dryer sheets
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.
My recommendation for you is to use a 40/60 port using 40% VT + 50% BND + 10% MMF and enjoy life.
Dash man
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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.
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.
