Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: account management costs
Old 06-19-2004, 07:17 AM   #21
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Historic Florida
Posts: 1,647
Re: account management costs

With today's pitiful returns IMHO, any fees you pay to a financial planner (or a high fee mutual fund for that matter) may simply be classified as inflation. So if you are being charged 1% of your assets, and Inflation is 2.5% you may as well be experiencing 3.5% inflation.

SWR
__________________

__________________
"Arguing with an Engineer is like rolling in the mud with a pig. Just remember that the pig likes it."
ShokWaveRider 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!

Re: account management costs
Old 06-19-2004, 09:23 AM   #22
Thinks s/he gets paid by the post
charlie's Avatar
 
Join Date: Mar 2004
Location: Dallas
Posts: 1,211
Re: account management costs

Jean,

If your Mom and Dad need to sell some of the stocks
for income, then you may need some advise on
which ones to sell. Otherwise, I suggest you just hold on to everything and avoid paying an advisor until the need arises. If that day comes, just hire a fee only
advisor to make specific recommendations to satisfy
the immediate need or use your Dad's broker if you
trust him. In any case, don't let your Dad's broker
do anything without your explicit permission and don't
hire any advisor on a continuing basis.

We on this forum will be glad to help also.

Some day you will inherit the whole portfolio and your tax basis will be the value of the portfolio at that time.
When this happens, I suggest you sell everything and
put the money into a diversified mix of stockand bond
index funds with a low cost provider like Vanguard.

Good luck and God bless,

Charlie
__________________

__________________
charlie is offline   Reply With Quote
Re: account management costs
Old 06-19-2004, 06:21 PM   #23
Confused about dryer sheets
 
Join Date: Jun 2004
Posts: 8
Re: account management costs

Thank you everyone who responded for the (quick) and detailed ideas. (Nords, you've designed & outlined my new "hobby" - very grateful for the links and resources.)

It's a complicated (I think) situation. I've got 5 sibs. I am POA; one brother is health proxy. Nursing home (and costs) a must due to nature of Dad's illness. Mom is adjusting emotionally. Financially, her living expenses have gone down (not counting NH costs). She has multiple streams of income (her pension, his pension, SS).

Until recently, she also had rental income. Rental ($250,000+ house) has been "gifted" to one brother and his family a few months ago. Dad didn't believe in LTC insurance, hence the NH bills.

TH, the stocks are basically divided between Wachovia and Bank of America. Through the years, I am aware of two splits that took place. Along with stocks in two brokerages, there is an annuity, another IRA and the family home @ 400,000+
My Dad was generous to relatives and strangers with his prosperity. I learned (almost too late) when gifted us all with some stock three years ago, to just leave it alone.

My mother is using the services of the same accountant Dad consulted with when he had a business during his "semi-retirement" (past 15 years). In the process of dissolving the business as no income is forthcoming from it, only paying a few thousand quarterly business taxes - seems useless, wasteful.

Accountant has referred (upon our request) to a planner when we asked what was the best procedure to pay nursing home, etc. (which accounts to draw from). If this planner can set things up, I'm confident we could manage the portfolio. Right now, I'm not sure what the options are, particularly with taxes, gift of house to my brother, Mom's LTC insurance.

This is delicate stuff. We always took care of our grandparents at home until death. My father's illness prevents home care. My only solace is that my father actually wants to be where he is and gets excellent care.

Apologies that this post is hop-scotching all over the topic. Thanks for your suggestions. You guys have already provided me with a change in attitude. My other hero, besides my {{Dad}}, was Viktor Frankl. He was a big proponent on the power of one's attitude. And, truly, you've helped change mine for the better

Nords, I truly appreciate all the information you provided. Now, I'm not feeling as much the "sheep led to slaughter" regarding that appointment next week. I'm off to read up on those links you've posted and begin a new hobby!

Thank you for making me feel so welcome.

Jean Patricia
__________________
LearningToGrow is offline   Reply With Quote
Re: account management costs
Old 06-19-2004, 06:28 PM   #24
Confused about dryer sheets
 
Join Date: Jun 2004
Posts: 8
Re: account management costs

Charlie,

Thank you. If my parents ever do need some "liquid", I surely want to know where to best to draw it from. Hoping this planner guy will pinpoint a reasonable (and simple) strategy.

I appreciate your suggestion of holding on and just letting it be until needed. Wisdom like my Dad.

This forum has already exceeded my expectations. Thanks for being part of that.

and God Bless you,

Jean Patricia

__________________
LearningToGrow is offline   Reply With Quote
Re: account management costs
Old 06-22-2004, 07:44 PM   #25
Confused about dryer sheets
 
Join Date: Jun 2004
Posts: 8
Re: account management costs

Was able to find Carson's 8 steps at the library and totally digging Humberto Cruz's column!

These resources are beginning to provide some much needed information and incentive.

Many thanks!
Jean Patricia
__________________
LearningToGrow is offline   Reply With Quote
Re: account management costs
Old 06-23-2004, 09:02 AM   #26
Full time employment: Posting here.
 
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 832
Re: account management costs

Quote:
It's a complicated (I think) situation. I've got 5 sibs. I am POA; one brother is health proxy. Nursing home (and costs) a must due to nature of Dad's illness. Mom is adjusting emotionally.... She has multiple streams of income (her pension, his pension, SS). ...rental income....

This is delicate stuff. We always took care of our grandparents at home until death. My father's illness prevents home care. My only solace is that my father actually wants to be where he is and gets excellent care.
Take care and DON'T rush into anything. I went through a similiar situation last fall, and it left a lot of hurt feelings. I hope that your parents have an AB Trust so that if / when something happens to Dad that her lifestyle won't be interrupted. My brother asked about his inheritance at Dad's funeral... thank G-D that the trust was there! It was well worth the $500 they paid to have it set up even though Mom had to transfer everything in herself.

I am taking her to Charles Schwab now that the apartment house is sold so that she can ladder into individual tax-free munis. She doesn't need the money but I'm glad it is there in case she wants to spend it.

Bottom line: give her time. Vanguard is quite reasonable if you are interested in growth, Schwab runs free no-pressure hour long courses during a free lunch if you are interested in taking short courses.
__________________
gayl is offline   Reply With Quote
Re: account management costs
Old 06-23-2004, 12:58 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
Re: account management costs


Do I understand that you pay a 1% fee in addition to the ER for each fund?

If that is so, you are paying $8K plus maybe another $8k or so in (expense ratio) ER, if the ER is 1%.

If you were invested in Vanguard at say, .25% ER, you would have an annual expense of about $2000.

I suggest that you calculate the ER for each of your funds (expense ratio X current fund value).

Then add that # to the $8000 you are paying for the Mgt. fee.

If you have never done this before, you will be very surprised at the total your are paying each year.
__________________

__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd 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
Automatic payments from a money market (savings) account a FIRE and Money 4 04-07-2007 01:14 PM
Tranaction fees, Fidelity - Automatic Account Builder discount. Brat FIRE and Money 3 10-17-2006 11:18 AM
Understanding my mom's Tiaa-Cref account? soupcxan FIRE and Money 3 04-12-2005 01:18 AM
Account types and Asset Allocation Helen Young Dreamers 5 03-07-2005 06:09 PM
Health Savings Account MooreBonds Other topics 3 12-30-2004 05:19 AM

 

 
All times are GMT -6. The time now is 09:16 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.