TimSF
Recycles dryer sheets
Thanks for maintaining this helpful website. The best comprehensive source of information re: FIRE issues I have found. I would like some advice.
Here is my situation. I FIRE'd in July of this year. Anticipating FIRE, we put our main home on the market and it just closed. We have net proceeds from the sale of about $1.2 m; my questions relate to what to do with this sudden influx of significant cash.
I am 51 and my life partner is 40. Combined, we have about $1.2 m in a traditional IRA. This money is invested about 70/30.
With the proceeds from the house sale, we have about $1.3 m in investable assets. I intend this to be our primary source of living expenses for the next 12 to 15 years. Our recurring monthly expenses are about $7000 a month, but we have a few large purchases on the horizon (new car, travel, partner's schooling).
My plan is to put about $200k in cash to fund a year or two's worth of expenses plus the big ticket items. The question is what to do with the other $1.1 million that I want to invest, probably more conservatively, for expenses 3 to 15 years out.
My Fidelity rep has recommended that I put this money in a Fidelity managed account, with directions to invest about 50/50. The annual fee is 1% of corpus, measured quarterly. One advantage is the manager will manage the fund to reduce tax impact.
The common wisdom here seems to be not to use a fee manager. And I am tempted to divide the $1m between a managed and self-directed account. Here are my questions:
1) Have any others here used money managers and been glad that they did?
2) If I don't use a money manager, how can I accomplish my investment goals for this $1 million (again, the 3-15 years money) with the least amount of fund management time on my part?
Thanks! Tim
Here is my situation. I FIRE'd in July of this year. Anticipating FIRE, we put our main home on the market and it just closed. We have net proceeds from the sale of about $1.2 m; my questions relate to what to do with this sudden influx of significant cash.
I am 51 and my life partner is 40. Combined, we have about $1.2 m in a traditional IRA. This money is invested about 70/30.
With the proceeds from the house sale, we have about $1.3 m in investable assets. I intend this to be our primary source of living expenses for the next 12 to 15 years. Our recurring monthly expenses are about $7000 a month, but we have a few large purchases on the horizon (new car, travel, partner's schooling).
My plan is to put about $200k in cash to fund a year or two's worth of expenses plus the big ticket items. The question is what to do with the other $1.1 million that I want to invest, probably more conservatively, for expenses 3 to 15 years out.
My Fidelity rep has recommended that I put this money in a Fidelity managed account, with directions to invest about 50/50. The annual fee is 1% of corpus, measured quarterly. One advantage is the manager will manage the fund to reduce tax impact.
The common wisdom here seems to be not to use a fee manager. And I am tempted to divide the $1m between a managed and self-directed account. Here are my questions:
1) Have any others here used money managers and been glad that they did?
2) If I don't use a money manager, how can I accomplish my investment goals for this $1 million (again, the 3-15 years money) with the least amount of fund management time on my part?
Thanks! Tim