Hi all,
I ran across this forum a few days ago and have been doing a lot of reading ever since. Sadly, many of my suspicions have been confirmed and I think I need some advice.
Here's the rundown on my current situation. I'm 29 and dead set on retiring in 12 years. This plan has been in motion for three years with the 'help' of a FA who I've come to realize is an insurance salesman in a pin stripe suit. More on that later. I'm married, we plan to remain childless, we will continue to drive crappy cars, and we are debt free...aside from the mortgage. This year our joint income finally crossed into 6 figures...$111,000 before taxes joint.
We're currently setting aside 30% of that income toward retirement. Another 3.5% goes toward fixing up our house (we do all the work ourselves).
Okay, 'the plan'. When we got set up with our FA, I knew even less than I know now, which is still embarrassingly little. We bought off and didn't think much about it. Our mindset was, "well, he's a professional..." After the recent 25% bath, our total portfolio is sitting at about $230k, give or take. It's roughly allocated in 1/3 mutual funds, 1/3 annuity, and the remainder split fairly evenly between IRAs, roth IRAs, 401ks, and one VUL. In past years, this was all yielding 8-18%, so I wasn't in a position to complain.
As I read through this site, I notice two seemingly large problem areas; the annuity and the VUL. Going forward, I'd like to consider managing this myself with the possibility of some pay-as-you-go advice from a non-salesman FA. I don't want to be involved with it on a daily basis or lose sleep over it, which was part of the logic in hiring a FA. I finally pulled my head out of my ass and realized that in EVERY other aspect of my life, if I want it done right, I do it myself. My house, my car, my work...why not my finances? Since they're at the heart of my biggest goal in life, maybe I should start putting in some effort. Genius, right?
A few major questions. First, what are the thoughts on the best way to proceed forward? Index funds? Stocks? Mayonnaise jars of cash buried in the yard?
Second, what are my options for reallocating what I already have, specifically the VUL and the annuity? Will penalties kill me or is it worth it in the end?
Sorry for the long post, but thanks in advance for any advice.
edit: I am confused about dryer sheets.
I ran across this forum a few days ago and have been doing a lot of reading ever since. Sadly, many of my suspicions have been confirmed and I think I need some advice.
Here's the rundown on my current situation. I'm 29 and dead set on retiring in 12 years. This plan has been in motion for three years with the 'help' of a FA who I've come to realize is an insurance salesman in a pin stripe suit. More on that later. I'm married, we plan to remain childless, we will continue to drive crappy cars, and we are debt free...aside from the mortgage. This year our joint income finally crossed into 6 figures...$111,000 before taxes joint.
We're currently setting aside 30% of that income toward retirement. Another 3.5% goes toward fixing up our house (we do all the work ourselves).
Okay, 'the plan'. When we got set up with our FA, I knew even less than I know now, which is still embarrassingly little. We bought off and didn't think much about it. Our mindset was, "well, he's a professional..." After the recent 25% bath, our total portfolio is sitting at about $230k, give or take. It's roughly allocated in 1/3 mutual funds, 1/3 annuity, and the remainder split fairly evenly between IRAs, roth IRAs, 401ks, and one VUL. In past years, this was all yielding 8-18%, so I wasn't in a position to complain.
As I read through this site, I notice two seemingly large problem areas; the annuity and the VUL. Going forward, I'd like to consider managing this myself with the possibility of some pay-as-you-go advice from a non-salesman FA. I don't want to be involved with it on a daily basis or lose sleep over it, which was part of the logic in hiring a FA. I finally pulled my head out of my ass and realized that in EVERY other aspect of my life, if I want it done right, I do it myself. My house, my car, my work...why not my finances? Since they're at the heart of my biggest goal in life, maybe I should start putting in some effort. Genius, right?
A few major questions. First, what are the thoughts on the best way to proceed forward? Index funds? Stocks? Mayonnaise jars of cash buried in the yard?
Second, what are my options for reallocating what I already have, specifically the VUL and the annuity? Will penalties kill me or is it worth it in the end?
Sorry for the long post, but thanks in advance for any advice.
edit: I am confused about dryer sheets.