Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 12-03-2020, 12:46 PM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
MRG's Avatar
 
Join Date: Apr 2013
Posts: 10,687
Quote:
Originally Posted by OldShooter View Post
Call the branch manager, complain, and ask that a new rep be assigned. Talk about what you want from a rep and possibly interview two or three. Priority #1 for them is to keep your assets, which means keeping you happy.
Branches manager said he's not handing out reps. Complaining to the branch manager is what got me fired from having a rep.
MRG is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-03-2020, 12:51 PM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 8,697
Quote:
Originally Posted by MRG View Post
Branches manager said he's not handing out reps. Complaining to the branch manager is what got me fired from having a rep.
Funny. I'd say that was a pretty clear message that they didn't want you as a client any more, or at least that particular office didn't want you as a client. Kind of amazing, actually.

When I was putting together my Adult-Ed investing class I visited Schwab, Fido, and TDAmeritrade and I didn't get that vibe from any of the branch managers I talked to.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 12-03-2020, 01:22 PM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 7,054
We are at Fido and have a good relationship with our Rep. She calls us at least once a year and comments on our portfolio, particularly its allocation. My Mother had all her assets at Fidelity, when she passed they gave me - her representative - excellent service. When Mother was able to visit their office she loved the fact that she could speak to a representative.

Fidelity has much better account manager and survivor options than Vanguard. That was a major issue for me. Our daughter is the CFO for a VC so I have given her trading rights on our account to be exercised when we can no longer manage it. Our Fidelity representative cautioned that can be a source of familial friction and that it may be wise to use a third party (Fidelity?). When I told the rep that our children had an excellent relationship she wisely observed, "That could change."

Fidelity's research website is fantastic. I can see concentrations when considering ETFs and their stock finder includes the opinions of researchers. I went looking for a foreign firm, highly rated, and found a chip manufacturer in Taiwan. It has done well.

Note: because of Covid19 rep conferences are by Zoom or similar software.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 12-03-2020, 03:23 PM   #44
Full time employment: Posting here.
mn54's Avatar
 
Join Date: Sep 2007
Location: mpls, mn
Posts: 699
Quote:
Originally Posted by mrfeh View Post
I receive such offers without being in the WM group.

I don't attend them, but I receive them.
i also get the offers without paying to be in the WM group. no sales pitches at the events. sometimes informational presentation, sometimes just a fun gathering, meeting your advisor and other investors.
mn54 is offline   Reply With Quote
Old 12-03-2020, 03:38 PM   #45
Full time employment: Posting here.
MrsHaloFIRE's Avatar
 
Join Date: Jun 2018
Posts: 906
Make them pay up. Last time I moved big money I had them match highest bonus from a competitor and guarantee me free trades of VG products for life of my account (I think I moved $ to Schwab). They were more than happy to match and accommodate.
Quote:
Originally Posted by doneat54 View Post
Thanks for all the tips. If I move from Prudential, it will be to Fidelity. I have easily $1.6M I could let them have quickly, so I hope it gets their attention. At one poster's comment above about Prudential's fees, I logged in an checked and I only paid a $5.75 fee quarterly this year. But I can't even see a graph of my account's performance at their website. Lame.

Just discussed with DW and she thinks it's a good idea to *potentially* move there, but we are going to start with just meeting and maybe dangling a "carrot" bunch of cash from the RE sale to invest there.
MrsHaloFIRE is offline   Reply With Quote
Old 12-03-2020, 04:09 PM   #46
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 2,754
I got fired from the Fido Private Client group when my rep capitulated and said he really had nothing for me. Why after 40 years of investing, my DM worked for a broker for 50 years, I always was DYI would I need an advisor? Never made more than 60K taxable income (taxable a very key element) yet a multi millionaire.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
foxfirev5 is offline   Reply With Quote
Old 12-03-2020, 05:57 PM   #47
Full time employment: Posting here.
SnowballCamper's Avatar
 
Join Date: Aug 2019
Posts: 558
Just don't let him get a % of assets under management!
__________________
--At what age does spending less now in order to have more later stop making sense?
SnowballCamper is offline   Reply With Quote
Old 12-03-2020, 06:32 PM   #48
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Location: Upstate
Posts: 2,145
Following along on this one.

I recently got a call from Fido as I have a 401(k) there from a previous employer and a small 403(b) from my current college gig. In addition, I have a small, hardly traded brokerage account. As a result of the conversation I decided to set up full view (I had done that years ago so some info was there but it was a couple/few years out of date w/broken links). I also told the regional rep that I would get back with them when I had it set up so they could take a look at overall possible account size etc. It might be an interesting discussion when they see what they are missing out on (currently). I did start the conversation that I was a DIY person - not interested at all in any sort of managed account.

I am curious to read this thread, and of course any warnings or watch out for kinds of situations.

I would say I've been happy with Ameritrade and Schwab (where the vast majority of my non-FIDO assets reside).
copyright1997reloaded is offline   Reply With Quote
Old 12-03-2020, 06:44 PM   #49
Full time employment: Posting here.
 
Join Date: Mar 2013
Posts: 970
Quote:
Originally Posted by copyright1997reloaded View Post
Following along on this one.

I also told the regional rep that I would get back with them when I had it set up so they could take a look at overall possible account size etc. It might be an interesting discussion when they see what they are missing out on (currently). I did start the conversation that I was a DIY person - not interested at all in any sort of managed account.

Well especially with all the feedback/experiences here, I think moving my Pru over is pretty likely. But I am not going to even offer it. I dropped some numbers with him on our phone call that let on that I have lots of holding's elsewhere. It will be interesting to see how long the convo goes before he brings that up.

But I am with you, I am going to make very clear up front that I am not interested in any "managed" accounts, so don't even go there.
__________________
Well of course it is my opinion, why would I express someone else's??
doneat54 is offline   Reply With Quote
Old 12-03-2020, 10:16 PM   #50
Thinks s/he gets paid by the post
Onward's Avatar
 
Join Date: Jul 2009
Posts: 1,934
My 2 cents...

If you're on this forum, and you've read and grokked the Gospels (Bogle, Malkiel, Bernstein), then there's absolutely no advantage to having someone else design or manage your portfolio of publicly traded securities. There's only downside.

Now if you're paying someone to help you with, say, retirement planning, that's different. But he/she better be an expert.
__________________
And if I claim to be a wise man, it surely means that I don't know.
Onward is offline   Reply With Quote
Old 01-08-2021, 04:12 PM   #51
Full time employment: Posting here.
 
Join Date: Mar 2013
Posts: 970
Had a nearly 1.5 hour Zoom call with the Fido rep today. DW and I were pleasantly surprised at many levels. I had sent him the previous day a portfolio summary that showed him that ~75% of it was outside Fidelity. He is following multi step program process and this first phase was "Discovery" where he asked about non financial goals and priorities. Asked about family priorities and took a lot of notes. Then asked us to prioritize from a list of risks like SWR, longevity, medical costs, etc. Lastly he shared his screen and showed us the expense workbook we might work with (I already have a spreadsheet which I just updated.)

I cautioned DW prior to the call about the Wealth management "product", and the likelihood that he might suggest moving the Prudential holdings in to Fidelity, but that never came up. It was a good discussion that allowed him to fill in lots of fields in their account tool that ultimately will allow him to come up with a suggested withdrawl plan for us to start in '22. He has been with Fido since 1999.

Will get him some expense guestimates before our next Zoom in a couple weeks.
__________________
Well of course it is my opinion, why would I express someone else's??
doneat54 is offline   Reply With Quote
Old 01-22-2021, 01:32 PM   #52
Full time employment: Posting here.
 
Join Date: Mar 2013
Posts: 970
Had the second Zoom call with the FIDO rep today. We finished putting expected expense data into their tool and looked at projections. We did SS estimates for both 67 and age 70 for both of us and we liked 70's best. That will leave us a gap of 7 years between when DW retires and she starts drawing SS. She is 2.5 years old than I. Once we both are drawing SS, the picture looks very good, with SS paying for 100% of our "essential" expenses, and nearly half of the discretionary.

The rep suggested a 7 year annuity that would cost around $0.5M and would buy us immunity from market volatility for those 7 years. I asked what would be the difference between just putting that amount of the portfolio into cash holdings, and drawing from that? He gave a couple different answers, that even seemed to contradict themselves.

So I am interested in insights on this. Current AA is around 38/62 and I favor being at 30/70 when DW retires. As I see it:

Cash pile pros: You keep $$ flexibility
Steady draw guaranteed to be there
Cash pile cons: You miss out on any growth on that $$

Annuity pros: Steady draw guaranteed to be there
Some growth (??) He is sending me a quote

Annuity Cons: That $0.5M out lay is now tied up
Fees?

I don't hear much positive about Annuities here, and not leaning toward one, but always looking for perspectives/ideas.

Thoughts??
__________________
Well of course it is my opinion, why would I express someone else's??
doneat54 is offline   Reply With Quote
Old 01-22-2021, 02:13 PM   #53
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 8,697
I am not an annuity guy either but the first thing I would do is to price shop it at Vanguard. There are also a couple of comparative shopping sites that the annuity boffins here like. Someone will be here soon with the links, I expect.

Another consideration is where this amount of money fits with your overall assets and your plan for them. The insurance company will make money and the salesperson will make money, more money will be spent buying that "immunity from market volatility." All money that will come from your $500K payment but does not have to come from the $500K if you keep i.

Something that is always good with prospectuses is to get the PDF and text search for words like "fees," "costs," etc. I would also ask the salesperson (a) Are you a fiduciary? and (b) What commission $$ will you receive for selling this?

Also, you've posed this as an either/or problem. With a 7 year planning horizon there are other options. It might make sense to hold some equities. In some other recent thread, a poster mentioned a mutual fund, VG I think, that held like 10 or 20% in conservative equities. This may suit, especially if you have other assets.

Finally, 7 years is a long time. Not only does life happen, but your actual spending is guaranteed to be different than your plan and probably more lumpy. So the amount of annuity payments to cover it can only be a guess and you'll have to live with that guess.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 01-22-2021, 02:24 PM   #54
Thinks s/he gets paid by the post
Out-to-Lunch's Avatar
 
Join Date: Jan 2020
Location: Milwaukee
Posts: 2,544
What is the payout with a $500k premium?

I would doubt that this would be a good deal for you. I am not opposed to (simple) annuities for, say, protection against longevity. But with a 7-year annuity at your ages, you will get essentially no help from mortality credits.

How about a bond ladder?
Out-to-Lunch is offline   Reply With Quote
Old 01-22-2021, 02:27 PM   #55
Thinks s/he gets paid by the post
 
Join Date: Jul 2013
Posts: 1,549
Quote:
Originally Posted by doneat54 View Post
Had the second Zoom call with the FIDO rep today. We finished putting expected expense data into their tool and looked at projections. We did SS estimates for both 67 and age 70 for both of us and we liked 70's best. That will leave us a gap of 7 years between when DW retires and she starts drawing SS. She is 2.5 years old than I. Once we both are drawing SS, the picture looks very good, with SS paying for 100% of our "essential" expenses, and nearly half of the discretionary.

The rep suggested a 7 year annuity that would cost around $0.5M and would buy us immunity from market volatility for those 7 years. I asked what would be the difference between just putting that amount of the portfolio into cash holdings, and drawing from that? He gave a couple different answers, that even seemed to contradict themselves.

So I am interested in insights on this. Current AA is around 38/62 and I favor being at 30/70 when DW retires. As I see it:

Cash pile pros: You keep $$ flexibility
Steady draw guaranteed to be there
Cash pile cons: You miss out on any growth on that $$

Annuity pros: Steady draw guaranteed to be there
Some growth (??) He is sending me a quote

Annuity Cons: That $0.5M out lay is now tied up
Fees?

I don't hear much positive about Annuities here, and not leaning toward one, but always looking for perspectives/ideas.

Thoughts??
Bummer. I know little about annuities and can't say if this is a good idea or not, but they generally are much better for the person selling them than the customer.

This instantly makes me think the rep is putting his needs ahead of yours.
mrfeh is online now   Reply With Quote
Old 01-22-2021, 07:24 PM   #56
Full time employment: Posting here.
 
Join Date: Mar 2013
Posts: 970
Got this quote tonight from the FIDO rep for an annuity:

Monthly Income Payment: $5,900.00
Annuity Source of Funds: Traditional IRA
Annuity Option: Period Certain Annuity
Purchase Payment: $478,201.47
Cost Basis: $0.00
Taxable Amount: $5,900.00
Payment Frequency: Monthly
Period Certain: 7 Years
Total of Payments $495,600.00*


So if I am reading this right, I get $495,600.00 in total payments ($5900x84 months) for $478,201.47. So a net gain of $17,398 over 7 years (?). According to Moneychimp's CAGR calculator, that is a 0.51% CAGR.


Its from MassMutual BTW, looks like they rate pretty high.


Ok, some growth, and immunity from market crashes, yes. But the loss of flexibility I'll have bugs me a bit.

And thanks for all the insights above, very helpful.
__________________
Well of course it is my opinion, why would I express someone else's??
doneat54 is offline   Reply With Quote
Old 01-22-2021, 08:13 PM   #57
Recycles dryer sheets
 
Join Date: Sep 2016
Location: Way up North
Posts: 462
I am not totally anti-annuity myself, but the proposed 7 year annuity looks like a bad deal. I look at annuities as an insurance product, insuring against living longer than planned. A period certain annuity of 7 years at .5% isn't insuring anything. You can set up a cd ladder and get that return with retained access to the principal.

I have had a different experience with Fidelity because my accounts there are employer sponsored 401K, pension and NQDC. I have a rep, but contact is through a separate phone number and team servicing only my former employer's accounts. There are over 50K employees and the rep I talk to is exclusively assigned to my old employer's employees. I have received exceptional service for the few things I need, but I suspect that there are different rules and incentives (or lack of incentives) for reps working for a specific employer retirement services group.
bada bing is offline   Reply With Quote
Old 01-22-2021, 10:26 PM   #58
Thinks s/he gets paid by the post
Out-to-Lunch's Avatar
 
Join Date: Jan 2020
Location: Milwaukee
Posts: 2,544
It is entirely possible that I am doing something wrong, but I get your imputed interest rate to be just over 1% using the Excel "rate" function": =RATE(84,5900,-478201.47,0,1)*12

I still agree with your conclusion, however. To be fair, how could they possibly provide you a guaranteed return of either 0.5 or 1% (depending on which of us is correct) in this environment?
Out-to-Lunch is offline   Reply With Quote
Old 01-22-2021, 11:22 PM   #59
Moderator
Jerry1's Avatar
 
Join Date: Nov 2014
Posts: 6,929
Quote:
Originally Posted by Out-to-Lunch View Post
how could they possibly provide you a guaranteed return of either 0.5 or 1% (depending on which of us is correct) in this environment?
They take on risk. I imagine that an insurance company has a return on all fund goal in this market of somewhere around 6%. Again, thatís just a guess, but thereís no doubt that they plan on taking on risk with that money and expect to make more than 1% with it. Of course, they could fail, but thatís what reserves are for. They have a long term horizon on their total book, the OP does not. That provides the opportunity for the insurance company.
__________________
Every day when I open my eyes now it feels like a Saturday - David Gray
Jerry1 is offline   Reply With Quote
Old 01-23-2021, 09:54 AM   #60
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Location: Upstate
Posts: 2,145
Quote:
Originally Posted by doneat54 View Post
Got this quote tonight from the FIDO rep for an annuity:

Monthly Income Payment: $5,900.00
Annuity Source of Funds: Traditional IRA
Annuity Option: Period Certain Annuity
Purchase Payment: $478,201.47
Cost Basis: $0.00
Taxable Amount: $5,900.00
Payment Frequency: Monthly
Period Certain: 7 Years
Total of Payments $495,600.00*


So if I am reading this right, I get $495,600.00 in total payments ($5900x84 months) for $478,201.47. So a net gain of $17,398 over 7 years (?). According to Moneychimp's CAGR calculator, that is a 0.51% CAGR.


Its from MassMutual BTW, looks like they rate pretty high.


Ok, some growth, and immunity from market crashes, yes. But the loss of flexibility I'll have bugs me a bit.

And thanks for all the insights above, very helpful.
You make 17398.53 over 7 years on an investment of $478201.47. No thanks. Just selling the securities and going all cash would allow you to withdraw 5692.87 per month, with the flexibility at any time to a) change the amount based on circumstances, b) invest it in something else. For a "cost" of $207 per month, I would want the flexibility.
copyright1997reloaded is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Fido bill pay and the newer Fido CC bingybear FIRE and Money 6 03-02-2017 08:44 AM
Polar bear playing with husky RunningBum Other topics 4 10-10-2007 05:10 PM
Am I playing with fire? LRAO FIRE and Money 16 11-10-2006 11:56 AM
Playing With Your Children boont Life after FIRE 32 11-06-2006 09:08 AM
Playing with your PenSION azanon Life after FIRE 11 11-02-2006 12:42 PM

» Quick Links

 
All times are GMT -6. The time now is 04:10 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.