I recently sold my business and currently have $2.95M in liquid assets after taxes. I'm still working for the company that acquired mine, at $180K a year, but the stress and BS have me coming home everyday saying I really don't need this, so why am I here? I have a non-compete but not under employment contract.
My questions:
-- The 3-5% rule-of-thumb withdrawal rate, does that assume all taxes will be paid out of that as well? So if I need $60,000 a year I would really need to consider $90K as the withdrawal amount?
-- Is there a conventional wisdom that says professionally managed "wealth" services like Fidelity's Portfolio Advisory Service are known rip-offs, or okay for new investors who probably couldn't do any better? They say they also provide maximum tax benefit so while returns may not be as good as putting it in indexed funds myself, the taxes may end up lower. Sales BS or is there something to it?
Thanks and hello everyone!
My questions:
-- The 3-5% rule-of-thumb withdrawal rate, does that assume all taxes will be paid out of that as well? So if I need $60,000 a year I would really need to consider $90K as the withdrawal amount?
-- Is there a conventional wisdom that says professionally managed "wealth" services like Fidelity's Portfolio Advisory Service are known rip-offs, or okay for new investors who probably couldn't do any better? They say they also provide maximum tax benefit so while returns may not be as good as putting it in indexed funds myself, the taxes may end up lower. Sales BS or is there something to it?
Thanks and hello everyone!