Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
fee-only planner or bunch of eccentrics?
Old 01-03-2011, 02:22 PM   #1
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 109
fee-only planner or bunch of eccentrics?

I want to retire on my 50th birthday in June 2011 using a 72t. Should I talk to a fee-only advisor or just trust all the retired people on this forum to be my guide?
__________________

__________________
Gazingus 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!

Old 01-03-2011, 02:35 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by Gazingus View Post
I want to retire on my 50th birthday in June 2011 using a 72t. Should I talk to a fee-only advisor or just trust all the retired people on this forum to be my guide?
Neither, you should read books and take control of your own destiny.......
__________________

__________________
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
Old 01-03-2011, 02:37 PM   #3
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,111
I agree with FinanceDude.

Maybe the world really is coming to an end in May.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 01-03-2011, 02:37 PM   #4
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
Gosh, did you try to pick two bad alternatives out of many and propose them as the only two choices or did it just work out that way?

You should educate yourself. Nothing will replace that. In addition, if you are not retiring on a shoe string and can easily afford it, some help from a well qualified, fee-only advisor wouldn't hurt. Especially if you personally are already well read on the subject and can ask good questions and give specific instructions on what you want. Maybe a CPA would be better since you'll want to follow the IRS rules carefully. And listening in on discussions here on this board, or similar discussion areas, given that you are reasonably well informed and well read, can be enlightening too.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 01-03-2011, 02:39 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by REWahoo View Post
I agree with FinanceDude.

Maybe the world really is coming to an end in May.
I heard through the grapevine that you made a New Year's Resolution to agree with me ONCE, but ONLY ONCE, so now you are free to go back to your "normal life"..........
__________________
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
Old 01-03-2011, 03:03 PM   #6
gone traveling
 
Join Date: May 2008
Posts: 3,864
Quote:
Originally Posted by Gazingus View Post
I want to retire on my 50th birthday in June 2011 using a 72t. Should I talk to a fee-only advisor or just trust all the retired people on this forum to be my guide?
We'd be happy to charge you a fee if you think it will level the playing field.
__________________
Westernskies is offline   Reply With Quote
Old 01-03-2011, 04:48 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,385
Quote:
Originally Posted by Gazingus View Post
I want to retire on my 50th birthday in June 2011 using a 72t. Should I talk to a fee-only advisor or just trust all the retired people on this forum to be my guide?
I would contact someone from Ameriprise. If you don't met his minimum and he won't help you , call Edw D. Jones. For a do-it-yourself option, contact Mr. *****, or John Galt 1.

Under no circumstances trust the eccentrics and malcontents on this board- least of all me.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 01-03-2011, 05:18 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,422
Which eccentrics? Can you get two of them here to agree?
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is online now   Reply With Quote
Old 01-03-2011, 05:58 PM   #9
gone traveling
 
Join Date: May 2008
Posts: 3,864
Quote:
Originally Posted by NW-Bound View Post
Which eccentrics? Can you get two of them here to agree?
...let alone us the malcontents.
__________________
Westernskies is offline   Reply With Quote
Old 01-03-2011, 07:30 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,422
Eh! Speak for yourself there... I am just an eccentric and everybody here knows it.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is online now   Reply With Quote
Old 01-03-2011, 08:49 PM   #11
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Goodness, what a bunch of smart aleck responses.

Gazingus, here is a FAQ with an extensive reading list: An updated FIRE recommended reading list (with a military twist)

As far as 72t's, I suggest reading Intercst's very good article on the subject, available here: Retire Early: Can I withdraw money from my IRA before age 59 ?

I am not quite sure what you are referring to when you say "busting" your SEPP, a link would help.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 01-03-2011, 09:00 PM   #12
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
This site is excellent on 72t issues: 72t.Net | SEPP Plans | IRC Section 72(t) | 72t Distribution | IRC Section 72(q) | yyyZ.Com
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 01-03-2011, 09:30 PM   #13
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 109
Thanks, Martha. I got the term "bust" from 72t.Net. It may mean any action that causes you to owe penalties on your SEPP to the IRS. I'll read more before I start pestering.
__________________
Gazingus is offline   Reply With Quote
Old 01-03-2011, 09:36 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,422
Quote:
Originally Posted by Martha View Post
Goodness, what a bunch of smart aleck responses.
Hey, do not blame us. We were distracted by what the OP called us in his thread title, which of course is not inaccurate. Personally, the term turns me on. In my work, we talk of orbital eccentricity, or the earth eccentricity which is a measure of its oblateness. Eccentricity is what makes things interesting.
__________________
"Old age is the most unexpected of all things that can happen to a man" -- Leon Trotsky
NW-Bound is online now   Reply With Quote
Old 01-03-2011, 10:48 PM   #15
Full time employment: Posting here.
 
Join Date: Apr 2009
Posts: 731
Hey, I met with a planner who wanted to charge me a fee (% of my money) per year, move me totally into mutual funds, and suggested I'd net much less than I do now investing on my own.

For some reason I declined.

I'm in a demographic where we get invited to free dinners at nice restaurants if we sit through their educational seminar... heh heh... I only met with this one for the free information they provided on my asset allocation. I didn't agree with him.

Seriously, meeting with a CPA and/or with a fee-only financial planner isn't a bad idea. However, you'll get incredible information here on this board. You may find you don't need it. The CPA for info on the 72t is a good idea.

I'm in do-it-myself mode.
__________________
Retired July 2, 2010 at 62. My only regret is that I couldn't do it sooner.
thinker25 is offline   Reply With Quote
Old 01-03-2011, 10:49 PM   #16
Full time employment: Posting here.
 
Join Date: Apr 2009
Posts: 731
Quote:
Originally Posted by NW-Bound View Post
Hey, do not blame us. We were distracted by what the OP called us in his thread title, which of course is not inaccurate. Personally, the term turns me on. In my work, we talk of orbital eccentricity, or the earth eccentricity which is a measure of its oblateness. Eccentricity is what makes things interesting.
Eccentricity is my favorite thing! I must be in the right place...
__________________
Retired July 2, 2010 at 62. My only regret is that I couldn't do it sooner.
thinker25 is offline   Reply With Quote
Old 01-04-2011, 07:52 AM   #17
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,539
The advice given here is worth exactly what you paid for it.

Seriously, chart your own course. Everyone's priorities are different, and the decisions - and their consequences - are yours alone.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 01-04-2011, 11:47 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by Gazingus View Post
Thanks, Martha. I got the term "bust" from 72t.Net. It may mean any action that causes you to owe penalties on your SEPP to the IRS. I'll read more before I start pestering.
I will not claim to be an expert or even particularly knowledgable about 72t withdrawals, but my recollection is that the main risk of busting your 72t setup is having your IRA investments fail to produce enough cash on a regular basis to satisfy the required withdrawals that you are locked into. So I think the biggest challenge is making sure your portfolio does not fail to allow the required withdrawals for the necessary length of time. This isn't all that different from traditional SWR worries.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 01-04-2011, 01:12 PM   #19
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,212
Quote:
Originally Posted by brewer12345 View Post
I will not claim to be an expert or even particularly knowledgable about 72t withdrawals, but my recollection is that the main risk of busting your 72t setup is having your IRA investments fail to produce enough cash on a regular basis to satisfy the required withdrawals that you are locked into. So I think the biggest challenge is making sure your portfolio does not fail to allow the required withdrawals for the necessary length of time. This isn't all that different from traditional SWR worries.
From Interct's article I linked to above:

What if my IRA runs out of money while taking SEPP distributions.

If you have been following an approved SEPP program and losing investments deplete your IRA before age 59-1/2, the IRS will not assess the 10% penalty and retroactive interest changes that usually result upon a modification to the annual distribution. (See Rev. Ruling 2002-62.)

Additionally, if you have been using the amortization or annuity method, you may make a one time change to the Minimum Distribution method. For a given IRA balance, this will reduce the annual distribution and allow the remaining portfolio to last longer. (See Rev. Ruling 2002-62.)

This is good news for those who attempted to take a SEPP using the annuity method with a high interest rate or from a concentrated portfolio and have suffered severe losses. If you invested primarily in something like Enron or WorldCom, your portfolio could be close to zero by now. The opportunity to make a penalty-free change to the minimum distribution method will offer some belated relief -- at least from the IRS penalties.

On the other hand, if you invested in Dell or Microsoft ten years ago and your portfolio has grown appreciably, you could also benefit from a change to the minimum distribution method. For example, let's say a 40-year-old started a SEPP eight years ago in November 1994 when 120% of the Long-Term Federal applicable rate was 9.61%. Using the UP-1984 Mortality Table and the annuity method, the fixed annual withdrawal in 1994 would be $9,456 from a $100,000 IRA. If the portfolio had grown to $1 million today, our now 48-year old retiree could switch to the minimum distribution method and take $27,780 from a $1 million IRA in 2002. That's almost a three-fold increase in the annual IRA distribution without incurring a penalty.

The option to switch to the minimum method may also appeal to those that decide to return to work or receive another source of taxable income that makes it unnecessary to continue their IRA withdrawals. Completely stopping the SEPP withdrawals would result is the application of the 10% penalty to all distributions to date, plus interest. Switching to the minimum method would at least reduce the distribution without triggering the penalty. However, the disadvantage is that you won't be able to change back to the amortization or annuity method at a later date without triggering the 10% penalty.


Here is the revenue ruling Intercst is talking about: http://www.brentmark.com/rr200262.htm
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 01-04-2011, 01:25 PM   #20
Thinks s/he gets paid by the post
Jay_Gatsby's Avatar
 
Join Date: Oct 2004
Posts: 1,719
Learn what you can about personal finance - it is often enough just to know what questions to ask. After that, learn to know where you're out of your depth and were some strategic advice would be useful.
__________________

__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
Jay_Gatsby 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
I just saved a bunch of $ mickeyd Other topics 20 03-26-2010 11:13 AM
Financial Planner ohfrugalone FIRE and Money 27 09-21-2008 11:04 PM
A bunch of birds by any other name mickeyd Other topics 4 06-09-2008 06:24 PM
Using a planner to help, well, plan? Urchina FIRE and Money 15 04-14-2008 10:59 AM
Found a Bunch of Money in a Suitcase! JustMeUC Other topics 2 10-09-2007 09:55 AM

 

 
All times are GMT -6. The time now is 08:34 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.