Retired at 55

[MichaelB]

At first, he waned to see how the market was doing. The first year, 2009, it was 90% in cash, 2010 80% cash, now over 70% in cash. That is why I asked the question, I didn't think it was right to keep that much of my assets in cash. So I called him to move some of the money out of cash, to a better investment. He said he waned to wait a little bit. He has access to all of Fidelity's no load mutual funds.

Your FA must be waiting for the stock market to reach it's peak before moving in. This is market timing at it's worst. If this were my portfolio I would fire the FA, put the cash into the Vanguard Wellesley fund, buy one of Bernstein's books on investing, and take it from there.

 

[Sarah in SC]

Hey redtail and welcome. I'll offer a slightly different take on this, maybe in that I will ask if your AA is customized to a specific risk tolerance assessment done by the FA for you, or is this his typical plan for everyone who uses him?

Typically a fee only arrangement does work in your best interests, if you choose not to DIY, so I find it against everyone's goals for you to be so heavily weighted in cash unless there was some compelling reason to do so.

The fee you are paying isn't outrageous, in and of itself, a more common fee would be in the 1% range to 1.25%, but I wouldn't want to pay any of that on cash. Or really to have someone pick mutual finds for me.

Get to reading up on this, learn from the past, and remember no one cares as much about your money as you do. And if at the end of your analysis you fin that your risk tolerance is such that it makes sense to be so much in cash, then "manage" that yourself if not the rest of your portfolio.

 

[rescueme]

If this were my portfolio I would fire the FA, put the cash into the Vanguard Wellesley fund, buy one of Bernstein's books on investing, and take it from there.

FWIW, I agree (especially on the Wellesly recommendation) ...

DW/I use Wellesley for putting our current "I don't know what to do" stash, for future use of our adult, disabled "child", after we're gone.

While he has other (greater) assets he will inherit (via a SNT) after we're gone, Wellesley is our "set and forget" fund until such a time (if ever) we need to look at increasing our estate value for his benefit.

It might work for you, until you get your feet wet in your new situation.

BTW, welcome and good luck on your journey...

 

[redtail]

FWIW, I agree (especially on the Wellesly recommendation) ...

DW/I use Wellesley for putting our current "I don't know what to do" stash, for future use of our adult, disabled "child", after we're gone.

While he has other (greater) assets he will inherit (via a SNT) after we're gone, Wellesley is our "set and forget" fund until such a time (if ever) we need to look at increasing our estate value for his benefit.

It might work for you, until you get your feet wet in your new situation.

BTW, welcome and good luck on your journey...

What book of Berstein would you recommend. Personally, in my portfolio, I would like to have all no-load mutual funds, with a little in cash to live on. Again, I want to thank everyone for their inputs on trying to help me out.

 

[MichaelB]

What book of Berstein would you recommend. Personally, in my portfolio, I would like to have all no-load mutual funds, with a little in cash to live on. Again, I want to thank everyone for their inputs on trying to help me out.

This is his most recent Amazon.com: The Investor's Manifesto: Preparing for Prosperity, Armageddon, and Everything in Between (9780470505144): William J. Bernstein: Books

This is older but classic and just as good today as the day it was first released Amazon.com: The Four Pillars of Investing: Lessons for Building a Winning Portfolio (9780071747059): William Bernstein: Books

 

[pb4uski]

Fire your FA. With all due respect, he is an idiot market timer, and a poor one at that.

 

[Khufu]

TIAA Direct is currently paying 1.24% for an FDIC insured savings account.

That's an attractive rate, but TIAA describes it as "promotional." Will probably revert soon.

 

[urn2bfree]

Credit Unions also may pay better interest on cash savings.

 

[pb4uski]

That's an attractive rate, but TIAA describes it as "promotional." Will probably revert soon.

Wouldn't surprise me if it ultimately declines to that of other internet banks, but when is the question.

 

[rescueme]

What book of Berstein would you recommend.

MichaelB already gave you his, and I have no argument with that recommendation at all.

The one that made the greatest impact on my "thinking" was his classic, "the Four Pillars of Investing".

It's still on my bookshelf, even after many other volumes have been discarded.

My disclaimer? It's a "rough read", unless you have been investing for a bit, and understand his references. Sometimes it's best to read a few chapters - or even a few pages, do "digest" what he has to say. However (overall), it is still revelent and of value - at least to me.

Just my simple opinion, WFIW....

 

[ducky911]

If he charging you a fee for your cash balance...i would ask for those fees to be refunded. Either way you should can him but i would first try for the refund. It just nuts to pay .75 to make .01

I just reread some of this and i take the above back. I would go to his office with a baseball bat. Since 2009 oh my!

 

[Milton]

Fire your FA. With all due respect, he is an idiot market timer, and a poor one at that.

+1.

 

[moda]

I am plannign to retire and am having trouble learning how the best way to get dispersements both in recieving and knowing how much to get. I have 980k in vanguard and 230k in current employers simple ira

 

[jclarksnakes]

The couple thousand dollars you have paid him in fees each year is actually small potatoes. If that half million dollars had been in the market since 2009 instead of sitting doing nothing it would have made you several hundred thousand dollars. If most any other professional makes a mistake that costs a client/customer/patient several hundred thousand dollars they could sue them. As a FA he is probably pretty much immune from malfeasance liability in a situation like this.

 

[jclarksnakes]

I am plannign to retire and am having trouble learning how the best way to get dispersements both in recieving and knowing how much to get. I have 980k in vanguard and 230k in current employers simple ira

Welcome to the forum You are asking a BIG question. It depends on how much you need to live and whether you have pensions and/or SS and whether the pension has a COLA and whether you have dependents and how old you are and how long you plan to live and whether you have health care insurance and what your tax situation is an on and on and on. A large percentage of the threads on this forum are about subjects that have to do with how we can decumulate our investments most effectvely.