Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Did it - dropped my advisor
Old 02-23-2007, 08:55 AM   #21
Moderator
Sarah in SC's Avatar
 
Join Date: Sep 2005
Location: Charleston, SC
Posts: 13,457
Re: Did it - dropped my advisor

Good job, Rich! You can do this yourself! Minimum of $400k <snort> in an effort to run you off completely!

Timely for me, as I'm girding my loins to have a talk with some very close friends that have taken some HORRIBLE financial advice from some guy they refer to as "their CFP". Okay, this guy is not a CFP, not a registered advisor, just some stock jockey they know. She's leaving a job and rolling out some 401k money, and I swear I am not going to sit idly by while they get screwed yet again. I don't exactly know the right approach, but I'm thinking (she's an RN) something like--if I was having surgery, I'd ask your opinion of the doctor, and I really think you should look hard at this guy before you take any more of his "advice". And hand her a list of nice mutual funds to please consider instead of this @$$clown's high commission picks.

Rich, it is a GREAT thing you've done! Congratulations!

Sarah
__________________

__________________
“One day your life will flash before your eyes. Make sure it's worth watching.”
Gerard Arthur Way

Sarah in SC 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: Did it - dropped my advisor
Old 02-23-2007, 08:59 AM   #22
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Re: Did it - dropped my advisor

Quote:
Originally Posted by mclesters
..before you take any more of his "advice". And hand her a list of nice mutual funds to please consider instead of this @$$clown's high commission picks.
Just a thought is she's timid about investing, allocating, and rebalancing: maybe a target retirement fund would be a soft landing for her.

Personally, I like at least a little slicing and dicing, but not a lot.
__________________

__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 09:16 AM   #23
Full time employment: Posting here.
Sandy's Avatar
 
Join Date: Dec 2006
Location: Florida
Posts: 855
Re: Did it - dropped my advisor

Congratulations, looks like all of the ranting and raving advice on this board does work. One question not asked, will you have significant tax consequences for this shift (maybe the loss in the value end will offset taxes)? And do you care?

I ask because we have an inherited brokerage account with Schwab. Fee at 1%, but I still consider that high compared to MF. However most of the funds were in a trust under control of FIL after MIL passing. The stepped up basis on MIL share was already significant when we recevied it. We pull bits annually, but a full scale shuffle would be painful in the short term, though I recognize probably wise for the long term.
__________________
I would not have anyone adopt my mode of living...but I would have each one be very careful to find out and pursue his own way, and not his father's or his mother's or his neighbor's instead. Thoreau, Walden
Sandy is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 09:16 AM   #24
Dryer sheet aficionado
 
Join Date: Jan 2006
Posts: 44
Re: Did it - dropped my advisor

Rich,

Congratulations! From some of your posts I always thought you were a natural do it yourself investor. If you dont mind let us know your AA.

Elroy
__________________
elroy is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 09:26 AM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Re: Did it - dropped my advisor

Quote:
Originally Posted by Sandy
Congratulations, looks like all of the ranting and raving advice on this board does work. One question not asked, will you have significant tax consequences for this shift (maybe the loss in the value end will offset taxes)? And do you care?

I ask because we have an inherited brokerage account with Schwab. Fee at 1%, but I still consider that high compared to MF. However most of the funds were in a trust under control of FIL after MIL passing. The stepped up basis on MIL share was already significant when we recevied it. We pull bits annually, but a full scale shuffle would be painful in the short term, though I recognize probably wise for the long term.
Sandy,

Can't you just switch from the Schwab managed account feature to a Schwab brokerage account keeping the same holdings and thus have no tax consequences?

Schwab doesn't charge a "management fee" for their borkerage accounts. But I noticed they do have a managed account offering that charges about 1% to do the so-called FA thing and manage your money for you. It sounds like this is what your inlaws had. Can't you just switch to a regular brokerage account with no tax consequences?
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 09:28 AM   #26
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Re: Did it - dropped my advisor

Quote:
Originally Posted by audreyh1
My God! How could anything have lost 2% in the last 6 months? We've had a tremendous rally in all equity classes!

Audrey
Not the growth asset classes. The Vanguard US growth fund is up a whopping 1.77% in the last 12 months.

__________________
saluki9 is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 09:29 AM   #27
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Re: Did it - dropped my advisor

Quote:
Originally Posted by Sandy
One question not asked, will you have significant tax consequences for this shift (maybe the loss in the value end will offset taxes)? And do you care?
It was all a rollover to my SEP IRA, so no tax issues this time around. Unfortunately, except for a year or two's worth of cash-stash, it's all coming back to me as ordinary income some day.

That's why I'm watching the 2008 Roth conversion situation. I've never been eligible for Roths due to good fortune but if that changes, in the year I live off my post-tax income I should at least briefly be in a low tax bracket. I'll transfer as much as I can into a new Roth at that point. Ironically, once I fully retire my bracket will go up since it will all be traditional IRA withdrawals, grossed up for taxes.

There's always something to keep an eye on but I'm looking forward to long periods of time where I can ignore my investments other than annual rebalancing.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 09:34 AM   #28
Full time employment: Posting here.
CCdaCE's Avatar
 
Join Date: Apr 2006
Posts: 887
Re: Did it - dropped my advisor

Quote:
Originally Posted by youbet
I guess I'm just not accustomed to your terminology.
Yes, I make up my own terms, and then use quotes, because I don't communicate very well.

Quote:
Originally Posted by youbet

Also, I think you are using the term "out of favor" to mean not performing well in relation to other equity classes. I usually associate "out of favor" with popularity. Some "popular" investment classes have rewarded their advocates with poor performance.........then they become "out of favor."
Isn't the last sentence summarizing the first two? You're getting my drift. It's all the market timers and performance chasers that do this. TSM dies in '00-'02 and everyone sells. Maybe you could accuse me of market timing, since I think TSM will rise (and it has), but not as much relative to the other asset classes displayed on the Callan chart.

I think I'll just shut up now. Thanks for bearing with my rambling. It should be obvious by now that I don't know what I'm talking about. And, even if I did know, I can't express it without a lot of revision/editing.

-CC
__________________
"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
CCdaCE is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 09:49 AM   #29
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Re: Did it - dropped my advisor

Quote:
Originally Posted by youbet
Why do you say that VTSMX is "out of favor?"
A "total U.S. market index" is mostly large cap growth in most cases. Large cap U.S. growth stocks have lagged since 2001.

They have lagged large cap value funds.
They have lagged small cap and mid-cap funds, growth AND value.
They have lagged most international funds.

There's a reason why I've beaten the S&P 500 every year since 2001 even with 30% of my portfolio in bonds and cash, and it's not because I'm a market wizard. It's because the asset class represented by the S&P 500 has been arguably the worst-performing equity asset class for more than half a decade.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 09:51 AM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Re: Did it - dropped my advisor

Quote:
Originally Posted by CCdaCE
I think I'll just shut up now.
Well don't do that CC....... Explaining points of view, defining terms, poking at data and all that kind of stuff is what most discussions on this board are all about!
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 10:46 AM   #31
Full time employment: Posting here.
CCdaCE's Avatar
 
Join Date: Apr 2006
Posts: 887
Re: Did it - dropped my advisor

Sorry for the hijack...

Quote:
Originally Posted by ziggy29

A "total U.S. market index" is mostly large cap growth in most cases. Large cap U.S. growth stocks have lagged since 2001.

<snip>

It's because the asset class represented by the S&P 500 has been arguably the worst-performing equity asset class for more than half a decade.
This is all exactly my thinking. Now, the question is, should I put all my eggs in this basket? Or in another basket (assuming I can only choose one basket).

Quote:
Originally Posted by youbet
Well don't do that CC....... Explaining points of view, defining terms, poking at data and all that kind of stuff is what most discussions on this board are all about!
Thanks for the encouragement!

-CC
__________________
"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
CCdaCE is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 10:52 AM   #32
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Re: Did it - dropped my advisor

Quote:
Originally Posted by CCdaCE
This is all exactly my thinking. Now, the question is, should I put all my eggs in this basket? Or in another basket (assuming I can only choose one basket).
I wouldn't. We could have used the same logic in 2003 or 2004 or 2005 or 2006...and we would have been wrong each time. Will 2007 be the year large cap growth finally outperforms? Or will the trend from the last five years carry into a sixth? My crystal ball's not working for me.

The best thing to do is to just rebalance once in a while -- selling some of the outperformers to buy some of the underperformers ... selling higher and buying lower. Doesn't work so well with individual stocks, because there's often a good reason why a beaten-down stock has underperformed...but it works well with asset classes.

Eventually these asset classes will mean-revert and when they do, large cap growth will outperform. It WILL happen; we just don't know when.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 12:14 PM   #33
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,538
Re: Did it - dropped my advisor

Quote:
Originally Posted by saluki9
Not the growth asset classes. The Vanguard US growth fund is up a whopping 1.77% in the last 12 months.

He was talking about the last six months! Big difference!!!

Audrey
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 01:02 PM   #34
Thinks s/he gets paid by the post
Outtahere's Avatar
 
Join Date: Sep 2005
Posts: 1,677
Re: Did it - dropped my advisor

Congratulations Rich, no better feeling than to be in charge of your own life/money.
__________________

Dogs aren't our whole lives, but they make our lives whole. - Roger Caras
Outtahere is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 01:49 PM   #35
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Re: Did it - dropped my advisor

Rich:

I sensed you were headed that way based on you earlier discussions. You have gained enough knowledge to do it yourself, so you might as well.

It was time...........




__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 02:04 PM   #36
Full time employment: Posting here.
Sandy's Avatar
 
Join Date: Dec 2006
Location: Florida
Posts: 855
Re: Did it - dropped my advisor

Quote:
Originally Posted by youbet
Sandy,

Can't you just switch from the Schwab managed account feature to a Schwab brokerage account keeping the same holdings and thus have no tax consequences?

Schwab doesn't charge a "management fee" for their borkerage accounts. But I noticed they do have a managed account offering that charges about 1% to do the so-called FA thing and manage your money for you. It sounds like this is what your inlaws had. Can't you just switch to a regular brokerage account with no tax consequences?
YouBet, sorry I wasn't clear - it is in a Schwab brokerage account, but I was thinking of trying to consolidate into Fidelity with the rest of my taxable investments (TRowe has most of our deferred funds, VALIC has some - and they can't be moved). Service is good, but its a small account for the manager and he just coasts. Seems we are paying him for not much with a 'set it and forget it approach' (ok, I don't want chruning). Fid keeps asking me to open brokerage account - noo, I have one elsewhere, or I could add to Fid MF. Also, with everything spead out, I can't leverage reduced fees and I don't get that "special treatment" you'll keep talking about :

It's not as bad as the VALIC stuff, but something that scurries around in the back of my mind.
__________________
I would not have anyone adopt my mode of living...but I would have each one be very careful to find out and pursue his own way, and not his father's or his mother's or his neighbor's instead. Thoreau, Walden
Sandy is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 05:50 PM   #37
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: Did it - dropped my advisor

Quote:
I know that our growth portfolio lost 2% in the last 6 months but that's because we are positioning for growth stocks to really take off this year.
Oh that's rich, Rich.

Congrats on making the big move to VG. Now you will have to increase your withdrawals and adjust your long term plans in order to adapt to all of the extra returns that you will have. A hell of a problem to have, no?
__________________
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 online now   Reply With Quote
Re: Did it - dropped my advisor
Old 02-23-2007, 11:17 PM   #38
Recycles dryer sheets
 
Join Date: Jul 2004
Posts: 430
Re: Did it - dropped my advisor

Quote:
Originally Posted by saluki9
Not the growth asset classes. The Vanguard US growth fund is up a whopping 1.77% in the last 12 months.
We shouldn't base anything on Vanguard US Growth. It has been a DOG for at least 5 years now.
__________________
gindie is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-24-2007, 09:00 AM   #39
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Re: Did it - dropped my advisor

Quote:
Originally Posted by dex

Pick your mutual funds - average into them and put it all on autoglide - enjoy
I agree with the auto-glide part but I would stay with the allocation I have if you are happy with it. That means lump sum deposits not $ cost average unless you are timing the market now.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Re: Did it - dropped my advisor
Old 02-24-2007, 10:02 AM   #40
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,538
Re: Did it - dropped my advisor

Agreed. If you are already invested X% in equities and keeping a similar allocation, then lump sum transfer makes sense rather than averaging in.

Averaging in is appropriate for making a really drastic change in asset allocation, or for investing a windfall like an inheritance or lump-sum payout from a retirement plan.

Audrey
__________________

__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 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
Who uses an investment advisor to help? mickeyd FIRE and Money 8 02-25-2007 07:28 PM
Final Meeting With My Finacial Advisor. My Dream FIRE and Money 107 01-16-2007 08:44 AM
Another advisor horror story JustCurious FIRE and Money 54 12-01-2006 07:57 PM
My Goal: No more financial advisor rip-offs SamHouston Hi, I am... 31 02-17-2006 05:39 PM
Ditching your Financial Advisor?? AJL FIRE and Money 22 11-14-2005 02:18 PM

 

 
All times are GMT -6. The time now is 02:44 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.