Hello, all,
New to the board. Perhaps in an enviable financial position to many here.
I'm 64, working wife 66. Portfolio: $1,800,000. No kids.
We own our million dollar house outright. (That doesn't buy a mansion here in Seattle these days.)
We're about to ER. FireCalc model doesn't predict any failures if we take $90,000/year (which is what we've been living on) with a conservative 50% stock portfolio.
We plan to postpone SS until 70: $33k to 2020 and $43k until 2022.
We have no long term care insurance and are in good health.
And we have a small business in addition to our day jobs from which we are retiring that is generating a $80k profit for the next few years. The nature of the business is such that we won't be able to sell it.
Biggest issue: Although the numbers work in FireCalc (and Flexible Retirement Planner, the only other Monte Carlo tool I've found that I like - free for non-commercial use) I'm scared. Such a big decision. Especially on the possible tail-end of a bull market. We're looking forward to retirement. But we've made some big mistakes financially in the past and so I'm seeking encouragement and suggestions from this community.
Second: Our biggest mistake was sticking with a Morgan Stanley portfolio manager all through the recent bull market and totally missing the run-up. It's totally our fault for not being more aggressive in pushing him more to explain the non-existent growth over the years and then overcoming our inertia and leaving. (I still wonder if there's any legally actionable malfeasance here...) And, frankly, I'm still quite miserable, really beating myself up emotionally on missing the final doubling of our portfolio before retiring ... but trying to get my head-screwed on straight rather than looking backwards.
That final doubling would have bought us considerable wiggle room in retirement, maybe allowed a vacation home, etc.
We have moved to a more trusted private FA. He charges 1% and has worked out well for a long time for our extended family, several of whom are relatively sophisticated business people and trust him. But, it galls me to pay someone almost $20,000/year to give us practically the same (maybe identical) advice he gives the rest of our extended family who have our approximate financial situation. Heck, for $20,000 a year, he ought to serve us breakfast in bed every weekend, and then some! He *is* all service, doing the minimal trading he'll suggest through our TD account, asking to see our wills, etc. But we don't need that much hand holding. We have our legal affairs in order. But, if he makes us just 1% a year more than we can do ourselves, or prevents our losing that much, he's worth it. But we also know that very few to no one beats the indexes regularly. He has suggested some instruments that are a bit more safe than the standards.
I don't feel up to learning how to make decisions on our investments, although I'm capable: strong technically, degreed in the science/tech world and could learn the ropes. Getting away from the previous manager was our highest priority. The new one is good for the time being. Perhaps after we retire next year we'll make a change.
Our question: other than totally self-management, are there FAs who for considerably less money (perhaps on an hourly basis) are hands-off but simply review our portfolio and make recommendations. Perhaps meeting once or twice a year and reviewing our status? Do such people exist? What caveats?
Clearly I’m not sophisticated in this arena.
My apologies if this is too long an introduction, or to broad or inappropriate in some way for this forum.
TIA,
New to the board. Perhaps in an enviable financial position to many here.
I'm 64, working wife 66. Portfolio: $1,800,000. No kids.
We own our million dollar house outright. (That doesn't buy a mansion here in Seattle these days.)
We're about to ER. FireCalc model doesn't predict any failures if we take $90,000/year (which is what we've been living on) with a conservative 50% stock portfolio.
We plan to postpone SS until 70: $33k to 2020 and $43k until 2022.
We have no long term care insurance and are in good health.
And we have a small business in addition to our day jobs from which we are retiring that is generating a $80k profit for the next few years. The nature of the business is such that we won't be able to sell it.
Biggest issue: Although the numbers work in FireCalc (and Flexible Retirement Planner, the only other Monte Carlo tool I've found that I like - free for non-commercial use) I'm scared. Such a big decision. Especially on the possible tail-end of a bull market. We're looking forward to retirement. But we've made some big mistakes financially in the past and so I'm seeking encouragement and suggestions from this community.
Second: Our biggest mistake was sticking with a Morgan Stanley portfolio manager all through the recent bull market and totally missing the run-up. It's totally our fault for not being more aggressive in pushing him more to explain the non-existent growth over the years and then overcoming our inertia and leaving. (I still wonder if there's any legally actionable malfeasance here...) And, frankly, I'm still quite miserable, really beating myself up emotionally on missing the final doubling of our portfolio before retiring ... but trying to get my head-screwed on straight rather than looking backwards.
That final doubling would have bought us considerable wiggle room in retirement, maybe allowed a vacation home, etc.
We have moved to a more trusted private FA. He charges 1% and has worked out well for a long time for our extended family, several of whom are relatively sophisticated business people and trust him. But, it galls me to pay someone almost $20,000/year to give us practically the same (maybe identical) advice he gives the rest of our extended family who have our approximate financial situation. Heck, for $20,000 a year, he ought to serve us breakfast in bed every weekend, and then some! He *is* all service, doing the minimal trading he'll suggest through our TD account, asking to see our wills, etc. But we don't need that much hand holding. We have our legal affairs in order. But, if he makes us just 1% a year more than we can do ourselves, or prevents our losing that much, he's worth it. But we also know that very few to no one beats the indexes regularly. He has suggested some instruments that are a bit more safe than the standards.
I don't feel up to learning how to make decisions on our investments, although I'm capable: strong technically, degreed in the science/tech world and could learn the ropes. Getting away from the previous manager was our highest priority. The new one is good for the time being. Perhaps after we retire next year we'll make a change.
Our question: other than totally self-management, are there FAs who for considerably less money (perhaps on an hourly basis) are hands-off but simply review our portfolio and make recommendations. Perhaps meeting once or twice a year and reviewing our status? Do such people exist? What caveats?
Clearly I’m not sophisticated in this arena.
My apologies if this is too long an introduction, or to broad or inappropriate in some way for this forum.
TIA,