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Old 11-18-2019, 09:27 AM   #121
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I've never felt the need to hire someone to do what I can do myself for free. And at 1.3%?!?? To put that in another context, at retirement, a widely regarded safe WR would go from 4% if self-managing to 2.7% if paying 1.3% to someone else. That's crazy. And in the accumulation phase (where I'm at), it's even more dire, as that's a loss of compounded growth.

The only way that having an FA that charges a wealth tax makes sense IMO is if their advice is causing you to appreciably tuck away more money than you otherwise would. I would gladly go back in time and have 18 year old me pay someone 1.3% if it meant I were putting money toward retirement. Unfortunately I didn't start saving until my mid-20s, and didn't really buckle down and start saving heavily until my early to mid 30s. Of course, if I could go back in time, I'd invest heavily in Apple and make some well-timed sports bets in Vegas, and I'd already be retired.
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Old 11-18-2019, 09:41 AM   #122
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Originally Posted by ERD50 View Post

I just don't get this idea of abdicating responsibility, makes no sense to me. Another poster said he was turning his account over to an FA so that he doesn't get excited and sell at a low. Again, I don't understand choosing to hire someone to choose to do the opposite of what you would do? It's still a choice. It's still your choice. If you can choose someone to not sell low, why not just not sell low, and eliminate the middle-man?

-ERD50
- Some folks know they have trouble controlling their emotions & turn to help against their known faults. What's not good about that?

- Some, me, feel a second POV is worth its cost. What's wrong with that? I'm not confident/arrogant enough in me to believe that on my own I make the best judgment about anything even when I feel I'm well educated/versed on a subject. Yes, I have to & do make calls on my own when I have limited/no other options.
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Old 11-18-2019, 09:51 AM   #123
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Originally Posted by jazz4cash View Post
... why he doesnít he ask his guy at EJ. he says they give advice but donít discuss the reason for the advice.
I have read that Eddie's salespeople receive only sales training, no investment training. So the guy probably doesn't know. He just sells what he's told to sell. Comforting, eh?

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Originally Posted by jazz4cash View Post
... He uses them because if they run out of money he can tell his DW he hired a pro and wonít have to take responsibility if he self manages and runs out of money.
If someone came to me and said they wanted to run out of money as quickly as possible, I would send them to Fast Eddie.
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Old 11-18-2019, 09:58 AM   #124
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...I just don't get this idea of abdicating responsibility, makes no sense to me...
When I was faced with a life-threatening illness, I immediately researched to understand it, and to know about the options for treatments and surgeries, and the chance for surviving it.

One of my best friends said that he would rather not know, and would just go along with whatever the doctor recommends. Said he was afraid of bad news.

People have different philosophies.
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Old 11-18-2019, 10:09 AM   #125
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Manage my own. Have been since around 2011. Before that had robo advisor with Fidelity for about 4 or 5 years with a work 401k...and I had 0 invested in 2006...I did own RE though.

Now I manage my own, help my DF and both my DS. Although none of them listens to my advice 100% except for myself lol. Which is fine, my returns are also consistent with that advice, beating everyone in my family...and likely a lot on this board...but who's counting

AAPL has helped me along with VHT.
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Old 11-18-2019, 10:16 AM   #126
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I (with DW permission) manage our portfolio and finances. Have since we've had anything to manage.
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Old 11-18-2019, 10:23 AM   #127
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Originally Posted by gerntz View Post
- Some folks know they have trouble controlling their emotions & turn to help against their known faults. What's not good about that?

- Some, me, feel a second POV is worth its cost. What's wrong with that? I'm not confident/arrogant enough in me to believe that on my own I make the best judgment about anything even when I feel I'm well educated/versed on a subject. Yes, I have to & do make calls on my own when I have limited/no other options.
I've gone on record many times here why a portion of my portfolio is managed. I don't have trouble controlling my emotions except when I read that I can't control my emotions. Yes I can easily put together a 3 or 4 fund portfolio.

Won't get into this again. My guy isn't a FA. I've been successful, they've been successful and the world is all good as far as I'm concerned. I'm very happy the crew here for the most part manages 100% of your investments. Good for you.
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Old 11-18-2019, 10:30 AM   #128
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Originally Posted by ERD50 View Post
But isn't he responsible for hiring the guy that had them run out of money?

I just don't get this idea of abdicating responsibility, makes no sense to me. Another poster said he was turning his account over to an FA so that he doesn't get excited and sell at a low. Again, I don't understand choosing to hire someone to choose to do the opposite of what you would do? It's still a choice. It's still your choice. If you can choose someone to not sell low, why not just not sell low, and eliminate the middle-man?

-ERD50

Some people feel there is too much risk in taking responsibility.
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Old 11-18-2019, 10:55 AM   #129
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Originally Posted by jollystomper View Post
Some people feel there is too much risk in taking responsibility.
Some times I think that's the correct approach. I am on a small nonprofit's investment committee running about $6M. Several of us on the committee are quite capable of running the money ourselves but one member correctly points out that we need to have "a throat to choke." If the FA's returns are poor that is one thing, but the nonprofit board will be a lot more upset and suspicious if the investment committee produces the same results DIY. Also, the FA does a lot of bookkeeping dog work and provides continuity as/if/when the investment committee membership turns over.

I think this is quite analogous to some of the personal situations mentioned here, particularly the question of continuity after the financial person in a couple dies.
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Old 11-18-2019, 11:04 AM   #130
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My company recommends using the Principal 401K retirement options that are available for a given time period (2020, 2025, 2030, 2035, 2040) depending on when your date will be. I have always found that these plans under perform the market, and especially some of the other, more risky options. I have always chosen my own investments, and most years out perform the market.

Coming into retirement years, I will get some help with tax strategy, but otherwise...
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Old 11-18-2019, 11:32 AM   #131
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I like to say "never say never." While I'm now consolidated at Schwab and consider myself totally self-managed, I could be called on these minor exceptions I guess.......

1. Years ago I belonged to a stock club (which was very successful!) and we used a Payne Webber broker who sometimes came to meetings and spoke, etc.

2. Because I have significant assets at Schwab (including some Vanguard funds, primarily VTSAX), I get some perks including annual financial plans and access to an FA (free) if I have specific procedural questions or just want to talk something over.

I still consider myself DIY since I determine my direction and strategies and make all decisions but admit to appreciating some occasional chats with the guy who has been assigned to my account for many years. For example, MegaCorp recently offered me a lump sum buy-out of my pension. I gave Schwab the details and they sent me their extensive analysis and we later held a phone conference reviewing it. They made no recommendation, just presented the numbers and a list of pros and cons. I combined their inputs with others and made the decision.

I've never paid for advise though. I do my own taxes.
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Old 11-18-2019, 01:36 PM   #132
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Old 11-18-2019, 02:55 PM   #133
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Originally Posted by OldShooter View Post
I have read that Eddie's salespeople receive only sales training, no investment training. So the guy probably doesn't know. He just sells what he's told to sell. Comforting, eh?

If someone came to me and said they wanted to run out of money as quickly as possible, I would send them to Fast Eddie.


I should ahdd that I think his EJ guy is not a snake. He had a small pension due from an ex employer. I was shocked his EJ guy did not tell him to take a lump sum to increase AUM.
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Old 11-18-2019, 03:46 PM   #134
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Does anyone use TD Ameritrade when managing the retirement? All i have seen on this topic is Fedelity.
We once had a taxable brokerage account and 2 Roth IRAs with TD Ameritrade. We transferred the Roth IRAs to Fidelity and split the assets in the brokerage account between Fidelity and Schwab. Recently, Vanguard transferred the assets in DH's 401k brokerage option to TD Ameritrade, while retaining the non-brokerage 401k assets. So right now, we're dealing with accounts at 4 investment firms, not by choice. My preferences would be to just have accounts at Fidelity and Schwab.

Did you have a specific question about TDA vs. Fidelity or Schwab?

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TD has historically been focused on traders and you will find few traders here. Vanguard, Fido, and Schwab tend to be the most mentioned here. We're at Schwab and very happy.
If that's true about TDA, I didn't know it. I don't use any of the fancier trading platforms. TDA didn't have any issues with us not being active traders years ago.
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Old 11-18-2019, 04:40 PM   #135
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I have proven several times that I am quite capable of losing money without professional help. Nevertheless, we are now retired and doing OK.
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Old 11-18-2019, 08:12 PM   #136
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Over ten years ago I worked with a pharmacist older than me who insisted I met his FA. This FA ended up selling a younger and naive me a universal life insurance policy. One of the worst financial decisions of my life and I broke free from that money black hole a couple of years later.

The pharmacist was just trying to help but after that experience I realized Iíd probably be better off doing it myself. Plus, Iíve always had an interesting in money and investing. I bought my first few shares of a mutual fund in high school. Itís just a comfort level thing now after years of learning about the markets and investing.

Having said all that I can see the value of hiring a fee only FA or CFP for when I get closer to retirement. Having someone else go over things like making sure we have enough to retire or tax strategies and other complications like SS and Roth conversions would be very valuable.

I donít need a lot if hand holding but getting a second opinion from an expert might help me avoid a costly mistake or reveal an option or strategy I hadnít considered or didnít know existed. Thatís worth the fee they will charge me to gain that knowledge and to just have someone else look over your financial plan.
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Old 11-18-2019, 08:19 PM   #137
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I flat out suck at investing, that's why I hire it.
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Old 11-18-2019, 09:03 PM   #138
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DIY here. Have made a few missteps along the way but not as large as those when had the help of an FA years ago.
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Old 11-19-2019, 04:17 AM   #139
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DIY here. Have made a few missteps along the way but not as large as those when had the help of an FA years ago.
Learned to DIY.
Made a few mistakes in 2018 like buying Nasdaq and increasing small cap mid year through and getting rid of bond fund for CD's (although fine on that now).
Everything settled in this year and tweaking much less and am happy with this years' returns apples to apples.
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Old 11-19-2019, 04:48 AM   #140
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No FA here. I started with a long merged discount broker, Rose & Company, back in 1982. First stock I ever owned was Quaker State, gifted to me by my mother, who was also a DIY investor. I think it was $10k.

I also my do my own taxes, financial planning, household management, fleet management, gardening and driving.
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