Cheesehead
Recycles dryer sheets
About to change my tune and stop doing it myself because I can't figure out how to turn the nest egg into an income stream.
After listening to a weekend morning AM radio show that he hosted, I imagine it was purchased infomercial time, I met with a CFP that has impressed me, for I am highly cynical and suspicious of that industry. This CFP was an exec in the wealth management department of a major insurance company and went on his own in 2006. We are two or three years from retiring and are in good shape with a pension and SS and as for our nest egg of about one million, I need that to throw off about $30K a year. I understand how to invest and grow, but my brain ain’t big enough to figure out the consistent retirement income stream aspect such as dividends, bond ladders and such.
However…unlike the majority of folks on this board, I don’t care to do it myself and I don’t want to go with an annuity. His is a six person office that teams with several other wealth management firms and they pool their clients’ assets of $1.2 billion in a firm titled Capital Asset Advisory Services. The way he explained it, by pooling their assets they get a better deal from TD Ameritrade. The annual fee would be 1.5% and I would get a quarterly check based on the 4% Rule which we will probably bring down to 2.5%. We are conservative investors. What I like about the arrangement is that our funds will be with TD Ameritrade so he does not have possession, we would transfer our 401K and 403b from Fidelity. I like that aspect because I trust no one.
I realize I’m giving up $15K a year but I feel it’s best to have a real pro doing this once we are retired. I have studied investing and learned on my own, thanks to this board, newsletters, podcasts, Bogle books, among other resources, and have made our nest egg grow, but the problem is how to convert this into a regular income stream, minimizing taxes, without turning to annuities. That is what I tried to learn how to do and I think I have given up!
So, do any wise folks here have any advice or concerns I am not considering? Fidelity also has a service similar in terms of retirement revenue streams for a fee of 1.5%, but with this small firm I will get more hand holding.
Thanks!
After listening to a weekend morning AM radio show that he hosted, I imagine it was purchased infomercial time, I met with a CFP that has impressed me, for I am highly cynical and suspicious of that industry. This CFP was an exec in the wealth management department of a major insurance company and went on his own in 2006. We are two or three years from retiring and are in good shape with a pension and SS and as for our nest egg of about one million, I need that to throw off about $30K a year. I understand how to invest and grow, but my brain ain’t big enough to figure out the consistent retirement income stream aspect such as dividends, bond ladders and such.
However…unlike the majority of folks on this board, I don’t care to do it myself and I don’t want to go with an annuity. His is a six person office that teams with several other wealth management firms and they pool their clients’ assets of $1.2 billion in a firm titled Capital Asset Advisory Services. The way he explained it, by pooling their assets they get a better deal from TD Ameritrade. The annual fee would be 1.5% and I would get a quarterly check based on the 4% Rule which we will probably bring down to 2.5%. We are conservative investors. What I like about the arrangement is that our funds will be with TD Ameritrade so he does not have possession, we would transfer our 401K and 403b from Fidelity. I like that aspect because I trust no one.
I realize I’m giving up $15K a year but I feel it’s best to have a real pro doing this once we are retired. I have studied investing and learned on my own, thanks to this board, newsletters, podcasts, Bogle books, among other resources, and have made our nest egg grow, but the problem is how to convert this into a regular income stream, minimizing taxes, without turning to annuities. That is what I tried to learn how to do and I think I have given up!
So, do any wise folks here have any advice or concerns I am not considering? Fidelity also has a service similar in terms of retirement revenue streams for a fee of 1.5%, but with this small firm I will get more hand holding.
Thanks!
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? That's pretty hefty. I think it's important to get good advice and maybe that's your only viable option, but that hurts just to read. You're situation doesn't seem too far off from mine and I can't give up that much money in fees. To do so, I'd have to believe that on my own, I'd make decisions that would be poor enough to cost me that much money. I don't think that's likely. I'll be doing a lot of reading over the next year or so before my retirement and building something with low cost funds and probably some CD's. I believe that once you get a strategy up and running, it should pretty much run on it's own. Did you ever consider paying someone $10K for a one time consultation/set up and then maybe $1K per year for a check up? I'm not sure if that possible, but I think I could stomach that if it were an option better than the reverse annuity of a 1.5% management fee.
