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Old 11-22-2022, 06:54 PM   #41
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I managed our investments for 38 years while I was working. After retirement my wife and I had a conversation. She expressed that she was nervous that if something happen to me she wouldn't know what to do about our investments. She has no interest in this. It was then that I decided to look around. I wanted a small firm, not Vanguard , Fidelity, Fisher. I looked for months until I found E3 Wealth. I met with them 3 times before signing on. They spent a lot of time understanding what the purpose of our money was going to be used for. I have one son and 3 grandchildren. I also wanted to make sure that my son would pay little to no taxes on the money he inherited. They developed a plan that included alternative investments, Roth conversion strategy and protection for most of my assets. Their theory was preservation of capital. I have with them since 2020 and couldn't be happier. For 2022 I am down 5.85% how many of you can say that.
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Old 11-22-2022, 09:31 PM   #42
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A little out of band...

Consider your nest egg, what the annual return is and since it is realistically on par with your salary at a J-O-B why not have the same or MORE training. No one will invest your money as carefully as you. AND as Buffet says, invest in what you know.

From my 30's I was considered a HCE (Highly compensated Employee). Many tax deductions reduced or eliminated (yea marginal vs effective, look it up). I got tired of the stock market and the not controllable.

My parents, blue collar, me white collar (engineer). They knew real estate, I was "forced" into it, drywall, electrical, plumbing, trash removal, the only words today are "thank you dad"

Majority of my assets are in Real Estate notes. I have some $ at Fidelity but, candidly, it's under $100K so, meh.

During this entire stock volatility, nothing but growth for me, not bragging. Invest in what you know.

No one will care more about your money that you. Isn't it worth a little time?
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Old 11-22-2022, 09:47 PM   #43
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I should try better to not get personal, so it's best not to comment further on this. I will say I think we're all aware that many people in sales use the church as a pool of potential clients. Same goes for most other social clubs; i.e. Rotary, Lion, R&G, etc, etc.


BTW, a CKA certification was a new one on me.
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Old 11-22-2022, 09:48 PM   #44
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Anybody else get a super corny “survey” from Vanguard designed to convince you the world would be a better place if you only had an FP? At the end it asks how many correct answers you’d get on a 10 question quiz. I said 9 but the questions were ridiculously easy. Then it asks how many you got correct but it never gives results. At 3 points im the survey its says “this question is to see if you are focused. Select choice ‘X’. Never seen that. Crazy.
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Old 11-23-2022, 10:31 AM   #45
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Sigh.

My church is investing $100K in CDs at EJ. It's through the office in City A (where the church is located). I have the grandkids' 529s at an office in City B and I live in City C. I'll be an authorized user on the church account.

Broker in City C calls me. No, they can't use my info from the account in City B. I can go to an office in City C, show my ID, sign papers, provide SSN and DOB. OK. Two minutes later she calls again. Sorry- she needs my DOB and SSN now. I provide it. I call the office in City C and set up an appointment for 10 this morning. At 9, broker in City A calls me. Am I planning to sign papers in City C today? Yes, I thought I had an appointment. Oh. Five minutes later she calls back. I must have talked with someone else in that office but now they're expecting me.

I got there and the papers were ready except she needed my DOB and SSN.

I can't wait till our Treasurer sends the check to fund the account and I need to get them to invest it.

By contrast- I'm about to hop over to the Fidelity sit and do a Roth conversion. All by myself on-line.
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Fee-based advisors?
Old 11-23-2022, 01:21 PM   #46
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Fee-based advisors?

A friend in Los Angeles desperately needs advice on his portfolio of 20 different index funds, ETFs and funds of funds. It's a mess. Understandably, he doesn't want to pay 1-1.25% a year. I want to suggest a fee-based advisor, but it would be useful to give him a price range so he knows what to expect. How much do fee-based advisors charge in the U.S.?
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Old 11-23-2022, 08:08 PM   #47
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Jack Bogle figured this all out years ago. Many of us have used his ideas as a guide for our long-term investing. Nothing in investing is new. Just recycled.
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Old 11-23-2022, 10:32 PM   #48
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A friend in Los Angeles desperately needs advice on his portfolio of 20 different index funds, ETFs and funds of funds. It's a mess. Understandably, he doesn't want to pay 1-1.25% a year. I want to suggest a fee-based advisor, but it would be useful to give him a price range so he knows what to expect. How much do fee-based advisors charge in the U.S.?
Hourly advisor/planner would be 2000 to 3000 for a comprehensive retirement plan. Garrett is one to check out for hourly advisors. No ongoing expense.
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Not all financial advisors are crooks
Old 11-24-2022, 12:44 AM   #49
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Not all financial advisors are crooks

Listen, I used a financial advisor for 7 years after my husband died and I'm extremely glad I did and recommend him to my friends. I totally admit for 30 years my husband did the heavy lifting in investing, now don't get me wrong I saved like crazy in my 401k but basically I did the targeted funds based on my age. Easy with nothing to understand

First, all those wonderful "resources " are not always wonderful. I've spent many a boring hour trying to slog through them and many simple made me more confused.
Everyone raves about Bogle and boglheads...I should have save the money I wasted on his books and invested that . Didn't finish one

Now I know everyone here are financial geniuses but I'm not and never will be. I hate figuring out half the stuff vanguard sends to me.

Truthfully now that I have managed my money independently I really couldn't tell you if I'm better off and I know if I hadn't utilized a fa services after losing the love of my life, it would have ended badly
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Old 11-24-2022, 06:42 AM   #50
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Listen, I used a financial advisor for 7 years after my husband died and I'm extremely glad I did and recommend him to my friends. I totally admit for 30 years my husband did the heavy lifting in investing, now don't get me wrong I saved like crazy in my 401k but basically I did the targeted funds based on my age. Easy with nothing to understand
I'm glad you found an honest and competent FA. They do exist. I know plenty of smart people who have zero interest in investing and they're better off with a simple plan such as yours.
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Old 11-24-2022, 07:19 AM   #51
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I'm glad you found an honest and competent FA. They do exist. I know plenty of smart people who have zero interest in investing and they're better off with a simple plan such as yours.
And it wasn't just about where to invest, he also taught me the best withdrawal plans so as not to get taxed crazy and what would happened to my savings when I started depleting it by taking out huge chunks of cash (buying a beach house)
I don't know a thing about taxes and no I'm not about to learn more than the basics.

It just annoys me with these comments that they're all crooks and thieves.

I remember at the beginning of covid how everyone (general use) on the internet was screaming how the scientists at the pharmaceutical companies were simply out to make money at the risk of people's health. Most of us were simply research scientists (like me) trying to fix a problem.

The bottom line is most people here are into investing and finances, I'm willing to bet the vast majority of the public is not.

Lol stepping off my soap box �� now ��
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Old 11-24-2022, 07:42 AM   #52
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Leave me ask you all this, will you actually ever have in hand the money you saved with a financial planer before you die? Will you ever even see 75% in hand? Same with 401'k. Will you have to pay taxes on that money also? Lots of good it is to have all that money somewhere and really not have it in hand,,,,,,, just my thought's
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Old 11-24-2022, 08:19 AM   #53
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Leave me ask you all this, will you actually ever have in hand the money you saved with a financial planer before you die? Will you ever even see 75% in hand? Same with 401'k. Will you have to pay taxes on that money also? Lots of good it is to have all that money somewhere and really not have it in hand,,,,,,, just my thought's
Not sure I'm actually understanding the question. When you say "have in hand", do you mean am I keeping a million dollars in a savings account at my credit union?? No. Do I have 6 months living expenses in a savings account? Yes. Can I easily transfer what I need within 2 days another yes.

Why would I keep that amount of cash on hand??

Yes, I will eventually pay taxes on my 401k money. But then I've paid taxes since I began working, but I haven't found a way to get around that
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One more reminder to stay clear from financial advisers
Old 11-24-2022, 08:30 AM   #54
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One more reminder to stay clear from financial advisers

Quote:
Originally Posted by bclover View Post
Not sure I'm actually understanding the question. When you say "have in hand", do you mean am I keeping a million dollars in a savings account at my credit union?? No. Do I have 6 months living expenses in a savings account? Yes. Can I easily transfer what I need within 2 days another yes.



Why would I keep that amount of cash on hand??



Yes, I will eventually pay taxes on my 401k money. But then I've paid taxes since I began working, but I haven't found a way to get around that

I believe what bclover is saying/asking is “In the grand scheme of you hiring a FA, would your financial future really be that much different in that you would have run out of money any sooner than if you had just stuck to using a few well diversified low cost index funds”?
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Old 11-24-2022, 08:35 AM   #55
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We use this tool often to consider different withdrawal strategies. Plus, we're going to a retirement/tax accountant next week to affirm what we calculated. It's helpful to plug in different ways to WD. And to plan ahead for RMDs, how to keep MAGI low, etc.

https://www.irscalculators.com/tax-calculator
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Old 11-24-2022, 09:20 AM   #56
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By and large I despise FAs. Every time I've come near one I have walked away thinking they were, at best, not that bright and, at worst, charlatans and cheats.

That said, there is a reality that managing money requires both an interest in doing it and the skills to manage it, particularly if you have any level of complexity with 529s, deferred comp, multiple brokerages due to the company selecting who runs the 401k, etc.

This thread did inspire me to chat with my wife about what she would do if I meet an early demise. She's smart and generally know how we're approaching retirement savings, etc. But our finances are moderately complicated and just dropping her into running it would probably feel like being dropped into the pilot seat on an airplane. Quite a few switches and knobs ...

We agreed that she would likely reach out to Schwab to get some help.

I'm also going to redouble my efforts to document how I have the finances wired together.
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Old 11-24-2022, 09:25 AM   #57
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If people were aware of how little time they spends on your account (1 of 700), and how much money they are taking off your table, they would find a better way. For me, even the .3 VFAS is not worth it as personal investing for retirement is just so simple.
Just for fun I worked this out. Assuming a 250 workdays per year and an 8 hour workday, that works out to be a generous 2 hours and 51 minutes a year. Figuring the average account is $286,000. His fee works out to be around $3,500 per account, per year: or between $1,200 and $1,300 per hour. Not a bad gig if you can get it.
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Old 11-24-2022, 10:13 AM   #58
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People who manage their money should have a back-up plan (such as training their spouse) in the event you lose your cognitive abilities or pass away unexpectedly. You should leave strict instruction on how you want the money managed. The last thing you would want is your spouse turning over all financial matters to a financial advisor who prey on situations like that to steal money. Even advisors at firms such as Fidelity and Schwab will take advantage of the situation and slowly siphon the money.
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Old 11-24-2022, 10:24 AM   #59
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Even though DW does not actively manage our money, I have a backup plan. In our Estate Plan Binder is a list of all the accounts, the account numbers, addresses and phone numbers of all our accounts.
Also I have a list of all our passwords.
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Old 11-24-2022, 10:25 AM   #60
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People who manage their money should have a back-up plan (such as training their spouse) in the event you lose your cognitive abilities or pass away unexpectedly. You should leave strict instruction on how you want the money managed. The last thing you would want is your spouse turning over all financial matters to a financial advisor who prey on situations like that to steal money. Even advisors at firms such as Fidelity and Schwab will take advantage of the situation and slowly siphon the money.
Yes, my spouse and I talk about strategy almost daily. Especially with this golden opportunity for long-term saving. And discuss WD's strategy for tax saving. We are clearly on the same page.
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