Am I the sucker?

[Rambler]

Thanks everyone for your replies. Had my doubts about this advisor for awhile but trying to put me into this annuity was the last straw. Was paying him .75% and I'm now going to move my $ to Schwab and make a run at doing it myself. I'm currently in over 20 different funds! I've got some homework to do but I think I'm going to find two or three index funds allocated appropriately and keep learning. My timeline is approx. 3-5 years.

I’m hoping you can move the assets instead of selling them, then once you have them at Schwab, try whittling down the funds a little at a time, and harvest any tax losses you may have against the gains. If you sell everything at once and move the cash to schwab, you may be looking at a large, unexpected tax bill.

As to your adviser, here’s what I’d do: do a quick 180, then run, as fast as you can. You can do much better on your own with just a little study and learning, and reading/asking questions around here. If you are still uncomfortable, use an advisor for an hourly fee once in a while, just for a checkup, but do the investing yourself.

 

[Dash man]

When you get to Schwab, consider asking them about a bond ladder for that cash. Holding the bonds to maturity gives you the principal back, then buy new bonds with that. You can take advantage of rising interest rates buying new bonds when you roll them over.

 

[38Chevy454]

I’m hoping you can move the assets instead of selling them, then once you have them at Schwab, try whittling down the funds a little at a time, and harvest any tax losses you may have against the gains. If you sell everything at once and move the cash to schwab, you may be looking at a large, unexpected tax bill.

As to your adviser, here’s what I’d do: do a quick 180, then run, as fast as you can. You can do much better on your own with just a little study and learning, and reading/asking questions around here. If you are still uncomfortable, use an advisor for an hourly fee once in a while, just for a checkup, but do the investing yourself.

X2, the best way would be to transfer the various investments "in kind" so you do not get a big tax bill. I assume these are long term holdings, which helps some vs short term tax rates. Being after tax account, you need to be aware of any tax consequences.



Agree that you can also do the self-directed approach. Being cautious of fees is another way to help your investment returns to be higher.

 

[Finance Dave]

Thanks everyone for your replies. Had my doubts about this advisor for awhile but trying to put me into this annuity was the last straw. Was paying him .75% and I'm now going to move my $ to Schwab and make a run at doing it myself. I'm currently in over 20 different funds! I've got some homework to do but I think I'm going to find two or three index funds allocated appropriately and keep learning. My timeline is approx. 3-5 years.

I recommend not moving anything on your own, you may trigger a taxable event. Instead, contact Schwab and get an advisor to work with you on this....they can help with the smartest way to do it. For example, instead of liquidating your positions and then transferring, they may want to move the funds over as-is and then liquidate in a tax-efficient manner.

I highly recommend using the "trustee to trustee" method whereby you never take delivery of any money/assets.

 

[catii]

+1 Schwab can advise you on ways to move money without giving Uncle any part of it.

 

[imnontrad]

Ohhh booy. You are talking to someone hoping for a nice commission check.

Fotr ways to invest that money, consider the investment strategies by Paul Merriman.

 

[RetireeRobert]

I recommend not moving anything on your own, you may trigger a taxable event. Instead, contact Schwab and get an advisor to work with you on this....they can help with the smartest way to do it. For example, instead of liquidating your positions and then transferring, they may want to move the funds over as-is and then liquidate in a tax-efficient manner.

I highly recommend using the "trustee to trustee" method whereby you never take delivery of any money/assets.

+2

 

[sgstaley]

Agreed!

If you didn't buy it you're not a sucker. But do stop talking to (or, at least paying) FAs at regional banks. His job is to sell you products.

Few of us are sophisticated investors. But stick around and keep reading, and you'll find you don't have to be, to beat most anything your current FA proposes.

I was in a 401K at work for a couple of decades. By the time that I retired I was paying over $4000.00 per year in maintenance fees.
The day I retired, I rolled out my 401K into my self managed online broker account. I have done VERY well just using common sense tactics and reading and learning from websites just like this one.

No, we are NOT sophisticated investors for the most part, but there are some really smart like minded people on this forum.

 

[VanWinkle]

I recommend not moving anything on your own, you may trigger a taxable event. Instead, contact Schwab and get an advisor to work with you on this....they can help with the smartest way to do it. For example, instead of liquidating your positions and then transferring, they may want to move the funds over as-is and then liquidate in a tax-efficient manner.

I highly recommend using the "trustee to trustee" method whereby you never take delivery of any money/assets.

+1