Live And Learn
Thinks s/he gets paid by the post
I met with my FIDO guy for the first time yesterday (just moved my taxable account). The meeting lasted nearly 2 hours, which I deeply appreciated. He reviewed my FIDO RIP input with me, which was great - I wanted the second set of eyes on it.
He said it was rare for people to have more in their taxable account then they have in their 401k/IRAs. He asked the source of the funds - I told him hard work, LBYM, and putting bonuses into savings rather than toys.
Then we reviewed my discretionary / non-discretionary spending vs my sources of income. "Fidelity recommends that non-discretionary expenses be covered by guaranteed income once you retire". I said "your not really going to recommend an annuity, are you ". He said "I think you should look into it. You have 18 years before you want to start taking Social Security. And even if you started at 62, you have 10 years. If there is a market crash you could be in danger of early asset depletion". Another suggestion was that I find part-time w*rk !!!
My RIP results show a 95% success to age 92. I questioned his recommendations, asking if the 95% meant that there is only a 5% risk of the "early asset depletion" he was concerned about. He said the RIP tool excludes the top 20% of returns as well as the bottom 20% before running the Monte Carlo simulations. To me this implied the 95% success rate may not be "complete". I can't find anything about that in the RIP methodology documentation.
We also talked about tax loss harvesting and that if there were a market correction I should look into that. I told him if there is no correction that I planned to tax gain harvest and take gains off the table at 0% tax rate. He looked at me like I had two heads. I said "LTCG are taxed at 0% if you are in the 15% tax bracket or lower, right ". He said, "that would be SOME loophole". Can the forum members confirm that I am correct about that? I just modeled it in Taxcaster and believe I'm correct, but now I need reassurance.
The guy has been doing this for 9 years. He's very nice, but given the above, I think I need to find someone else. What do you folks think ?
Thanks
He said it was rare for people to have more in their taxable account then they have in their 401k/IRAs. He asked the source of the funds - I told him hard work, LBYM, and putting bonuses into savings rather than toys.
Then we reviewed my discretionary / non-discretionary spending vs my sources of income. "Fidelity recommends that non-discretionary expenses be covered by guaranteed income once you retire". I said "your not really going to recommend an annuity, are you ". He said "I think you should look into it. You have 18 years before you want to start taking Social Security. And even if you started at 62, you have 10 years. If there is a market crash you could be in danger of early asset depletion". Another suggestion was that I find part-time w*rk !!!
My RIP results show a 95% success to age 92. I questioned his recommendations, asking if the 95% meant that there is only a 5% risk of the "early asset depletion" he was concerned about. He said the RIP tool excludes the top 20% of returns as well as the bottom 20% before running the Monte Carlo simulations. To me this implied the 95% success rate may not be "complete". I can't find anything about that in the RIP methodology documentation.
We also talked about tax loss harvesting and that if there were a market correction I should look into that. I told him if there is no correction that I planned to tax gain harvest and take gains off the table at 0% tax rate. He looked at me like I had two heads. I said "LTCG are taxed at 0% if you are in the 15% tax bracket or lower, right ". He said, "that would be SOME loophole". Can the forum members confirm that I am correct about that? I just modeled it in Taxcaster and believe I'm correct, but now I need reassurance.
The guy has been doing this for 9 years. He's very nice, but given the above, I think I need to find someone else. What do you folks think ?
Thanks