Simple Wealth, Inevitable Wealth

[meleana]

Anyone read this book and if so what do you think of it? Some "financial planners' give it to prospective clients.

 

[braumeister]

20 years old and out of print. Not something most would consider valuable. I guess your planner had a crate of 'em in the back room?

 

[flintnational]

I am not familiar with the author or the title. But, a quick internet search indicates he also wrote a book about "Prospecting for Financial Advisers". And the first chapter of the book you mention has the title, "Finding Your Coach". So, yes, I suspect it would be distributed widely by FAs. I suspect it advocates a FA model of investing. I would recommend you read books from the Bogleheads reading list.

 

[VanWinkle]

I am not familiar with the author or the title. But, a quick internet search indicates he also wrote a book about "Prospecting for Financial Advisers". And the first chapter of the book you mention has the title, "Finding Your Coach". So, yes, I suspect it would be distributed widely by FAs. I suspect it advocates a FA model of investing. I would recommend you read books from the Bogleheads reading list.

I "second" this recommendation!!!

 

[meleana]

20 years old and out of print. Not something most would consider valuable. I guess your planner had a crate of 'em in the back room?

Actually the one he sent me was updated in 2013 it says. The whole book advocates using a Financial Advisor and investing all your money in stocks. ALL OF IT for the most part.




We are 62 and 64, with hubby retiring next year at 66. And- we need to sell our home and move out of state.


The guy I met with says we should have 95% in equities and 5% cash. He was on the Dave Ramsey list. He also would want to take "custody" of our assets and put everything in Wisdom Tree ETF's through Pershing.



Said I could keep our money with T Rowe Price - "for now".



Said he is a Fiduciary and considered fee only- no commissions. All semantics I say.



The whole thing scared me.


I am going to go with a Garret Planning Group, fee only FA instead. I want to leave my money with T Rowe Price and just get advice.

 

[braumeister]

The whole book advocates using a Financial Advisor .

From the Preface to the first edition (according to Amazon):

Over the course of the last three decades, I've been an advisor to individual investors, and now - for want of a better description - an advisor to other financial advisors.

The reviews seem to be mainly from other FAs or from people who were given a copy by their FA. All of which may be irrelevant, but a point of concern.

Sounds as if the OP is savvy enough to recognize the inherent bias.

 

[pb4uski]

Actually the one he sent me was updated in 2013 it says. The whole book advocates using a Financial Advisor and investing all your money in stocks. ALL OF IT for the most part. ...

Ok, so isn't just investing all your money in a US total stock fund (or world total stock fund) even simpler and equally inevitable?

 

[VanWinkle]

Actually the one he sent me was updated in 2013 it says. The whole book advocates using a Financial Advisor and investing all your money in stocks. ALL OF IT for the most part.




We are 62 and 64, with hubby retiring next year at 66. And- we need to sell our home and move out of state.


The guy I met with says we should have 95% in equities and 5% cash. He was on the Dave Ramsey list. He also would want to take "custody" of our assets and put everything in Wisdom Tree ETF's through Pershing.



Said I could keep our money with T Rowe Price - "for now".



Said he is a Fiduciary and considered fee only- no commissions. All semantics I say.



The whole thing scared me.


I am going to go with a Garret Planning Group, fee only FA instead. I want to leave my money with T Rowe Price and just get advice.

That sounds like a reasonable plan to me, good choice!! I assume you
are paying an hourly fee only?

 

[meleana]

That sounds like a reasonable plan to me, good choice!! I assume you
are paying an hourly fee only?

It is $1500 for the plan and he works with us over several months until it is implemented and working. Then going forward he has different way of working with you. He can go on retainer for $1200 per year or more depending on what is involved as determined in the planning process. Or he also can charge $200 per hour.


He was the ONLY guy I met with who had this type of business structure and I like it.

 

[meleana]

Ok, so isn't just investing all your money in a US total stock fund (or world total stock fund) even simpler and equally inevitable?

In terms of asset management- EXACTLY! I mean- you could even put your money in a Target date retirement fund - which is much more diversified and call it a day. Why would I want to pay someone 1-1.75 % yearly?


I can see that maybe we need more equities in our portfolio- which the guy did not look at as this was our first meeting, so he doesn't even know our asset allocation- but to say everyone blanket should have 95% in stocks- uh- I don't think so.


But then again, I am not an expert obviously.

 

[VanWinkle]

It is $1500 for the plan and he works with us over several months until it is implemented and working. Then going forward he has different way of working with you. He can go on retainer for $1200 per year or more depending on what is involved as determined in the planning process. Or he also can charge $200 per hour.


He was the ONLY guy I met with who had this type of business structure and I like it.

If this guy is a good planner, it will be a bargain compared to Assets Under Management fees used by some FAs.

I will be interested to hear more of your results with Garrett Planning.

VW

 

[flintnational]

It is $1500 for the plan and he works with us over several months until it is implemented and working. Then going forward he has different way of working with you. He can go on retainer for $1200 per year or more depending on what is involved as determined in the planning process. Or he also can charge $200 per hour.


He was the ONLY guy I met with who had this type of business structure and I like it.

This sounds like a good plan. As you have realized, I think it is impossible to completely outsource investing decisions. You need to know enough to make sure your adviser is competent and looking out for your best interest.

 

[timemoveson]

This sounds like a good plan. As you have realized, I think it is impossible to completely outsource investing decisions. You need to know enough to make sure your adviser is competent and looking out for your best interest.

...And once you are that level of education, you can do it for yourself if you choose and pay nothing to outside parties of this type.

 

[meleana]

...And once you are that level of education, you can do it for yourself if you choose and pay nothing to outside parties of this type.

I have always done everything myself. Just now at this transition to retirement I feel we need more expert guidance on how to live off our investments, taxes, when to take SS, relocating, health insurance, especially because we have no pensions. I need the objective perspective of how we can live going forward from a holistic standpoint. Someone to bring it all together. The whole thing is very scary to me


If we had pensions that covered our basic living expenses I wouldn't think too much about it but we don't.


I am really hoping this will help us now at this point in our lives.

 

[DrRoy]

The whole book advocates using a Financial Advisor and investing all your money in stocks. ALL OF IT for the most part.

PUNT!!

 

[Scrapr]

I think you are on the right track @meleana. Use a fee only planner for help at your inflection points.

95% equities at the edge of retirement is nuts. I also wonder if there is reimbursement (kickbacks) from the FA trading your funds. Or putting your money in high fee funds..with advisor perks for reaching various AUM levels.

I don't know this for a fact. But it would not surprise me that Dave Ramsey advisors took advantage of unsophisticated clients. I'm sure the FA is paying DR to be in the program. That might be an interesting conversation

 

[youbet]

I don't know this for a fact.

Well... that’s a fact!

 

[kgtest]

Didn't read the book, but I know someone with 100% Income Replacement in retirement via Cash, Pension, SS, Hard Money Loans and Real Estate Income.

In that situation the risk of having 100% stocks is irrelevant. If you have achieved 100% income replacement with 4 essentially passive income streams the risk of running out is essentially close to 0% and the risk of dieing is much greater lol.

 

[meleana]

Didn't read the book, but I know someone with 100% Income Replacement in retirement via Cash, Pension, SS, Hard Money Loans and Real Estate Income.

In that situation the risk of having 100% stocks is irrelevant. If you have achieved 100% income replacement with 4 essentially passive income streams the risk of running out is essentially close to 0% and the risk of dieing is much greater lol.

Yeah-well to us it is, because we only have SS (in the future) and our cash and investments. No pensions, real estate income and I don't know what Money Loans are.


So having 100% in the stock market is pretty scary to me.

 

[Huston55]

I have always done everything myself. Just now at this transition to retirement I feel we need more expert guidance on how to live off our investments, taxes, when to take SS, relocating, health insurance, especially because we have no pensions. I need the objective perspective of how we can live going forward from a holistic standpoint. Someone to bring it all together. The whole thing is very scary to me


If we had pensions that covered our basic living expenses I wouldn't think too much about it but we don't.


I am really hoping this will help us now at this point in our lives.

Meleana-

You may want to consider a ‘Floor & Upside’ approach. Dirk Cotton’s blog is an excellent source of advice. Here’s a relevant post.

The Retirement Café: Unraveling Retirement Strategies: Floor-and-Upside (An Update)

 

[Jerry1]

Meleana-

You may want to consider a ‘Floor & Upside’ approach. Dirk Cotton’s blog is an excellent source of advice. Here’s a relevant post.

The Retirement Café: Unraveling Retirement Strategies: Floor-and-Upside (An Update)

Never heard it called that, but the Floor & Upside approach is essentially what we’re doing. By the time SS kicks in, we will cover about 90% of our projected spend with SS and pension. At that point, the portfolio should be able to cover the rest and hopefully grow a nice inheritance for our daughters or at least fund a long term care situation.