65 and Retired but want my investments to last

[joseppy]

I'm 65, been retired for 9 yrs, pension + social security is $100,000 annually, $850,000 in investments which we haven't tapped yet. Currently have $650,000 invested with Edward Jones in mutual funds and bonds, 2/3 IRAs. The remaining $200,000 is invested in the Wisconsin Retirement Fund IRA. I am not too thrilled with the return on the EJ investments over the past 12 years. I'm considering moving the funds to another investor, such as Fisher Investments. I am not real knowledgeable about investing to do this myself without having some sort of management company involved. My wife and I love to travel, mostly in the U.S. by car, but we do get to Europe on river cruises on occassion. We live in Wisconsin but spend 3 months in Florida during the winter. We would like our investments to help us maintain this while we can still travel and enjoy life.

 

[REWahoo]

Here are a couple of threads regarding Fisher Investments you might find interesting:

http://www.early-retirement.org/forums/f28/fisher-investments-63867.html
http://www.early-retirement.org/forums/f28/financial-manager-65230.html

 

[travelover]

You owe it to yourself to learn a little about investing and do it yourself. If you had to write a yearly check to EJ for what they are charging you, your eyes would water.

Seriously, it isn't that hard and it is the best way to make it last - not to drop 5 to 10 grand or so a year for basically nothing but hand holding.

 

[pb4uski]

If you want something that is low maintenance and easy, I would just move all the EJ monies to Vanguard and put it in their Wellesley income fund. Alternatively, Vanguard will do a financial planning analysis for you and recommend funds that are appropriate in your circumstances.

IMO, you will be much better off with them than with EJ or FI. YMMV.

 

[racy]

jo,
Here's something for your consideration: Edward Jones IRA Review

 

[RunningBum]

With > 500K, you qualify for Vanguard Voyager Select: https://investor.vanguard.com/what-we-offer/personal-services/voyager-and-voyager-select-services . As pb4uski says, this will get you a free detailed financial plan. When I did this they took time to explain asset allocation across all of my accounts, and what was more appropriate for taxable and non-taxable accounts. I'm sure you could tell them you want to keep it simple and easy to manage and they could do so with no loss of return.

 

[RunningBum]

Also, welcome to the forum. Sounds like you and your wife are enjoying life.

 

[ducky911]

These advisers pull you in with fancy pie charts and claim to have secret access to guru funds that you can not buy anywhere else...haha..Would you pay 10k to have your palm read?

There are no secret funds or gurus. Its all risk vs return. If someone is making more than they are taking bigger risks.

What is good, is since this is ira money you do not have to worry about taxes with the switch. I think the above vanguard advice is a great start....once done 10k for vacation each year with money saved.

I had a sales pitch to take over my accounts that was going to charge 1%. It seemed so low but when I looked at the funds that they were wanting to put me in added more than another 1%.......making it 2+%....I discovered I could buy the same investment on my own for .15%...and pocket almost 2%

 

[joseppy]

Thanks for all the info. I will look at Vanguard but in the longer haul I will look at some self education.

 

[ducky911]

found this on boggle thought you would find it useful

Bogleheads • View topic - Any leaving your broker stories you'd like to share?

Bob

 

[travelover]

Thanks for all the info. I will look at Vanguard but in the longer haul I will look at some self education.

Read a few books here - I like the Bogleheads books.

Investment Books

 

[racy]

"Thanks for all the info. I will look at Vanguard but in the longer haul I will look at some self education." .. joseppy

RE, lover, pb4, bum, ducky --
Yeah! We've saved another one!

 

[frayne]

Interesting article from Morningstar about money moving into index funds as compared to actively managed funds.

Rising Stock Markets a Bigger Positive for Passive Equity Flows

 

[obgyn65]

Welcome to the forum. Please could you explain why you are not too thrilled about your investment at EJ? I am also with EJ and curious.

 

[LitGal]

Listen to These Folks......

If you want something that is low maintenance and easy, I would just move all the EJ monies to Vanguard and put it in their Wellesley income fund. Alternatively, Vanguard will do a financial planning analysis for you and recommend funds that are appropriate in your circumstances.

IMO, you will be much better off with them than with EJ or FI. YMMV.

...and avoid Fisher.

But first, welcome to the forum, joseppy! When you read the "Fisher Investments" thread in "FIRE and Income," you will see the thinking and experiences of many who have considered Fisher. I began that thread after starting ER, and was grateful when quite a few readers confirmed my hesitation to pay 1.5%/yr. for hand-holding.

Instead, I took the advice (quoted above) and it has worked! Thanks to the input of so many knowledgeable post-ers here, + using the Vanguard website for self-education, + reading Dan Wiener's Investment Adviser and Kiplinger's Retirement newsletter, it has been quite easy to learn how to allocate assets, study the market and find ways to outpace inflation. Knowledge truly is power, plus a huge confidence booster.

Since using these approaches, my Vanguard IRA is averaging an 8% return for the past year. It has been fun to take on this "part-time job" in ER. I figure my "pay" is anything the investments earn beyond CD rates, plus the 1.5% I would have paid Fisher. Instead, I pay myself. (Will be using these earnings to head out to Paris in September.)

Not bad, for someone who never took a business class (unless you count 8 weeks of typing in the 8th grade). But the credit goes to the help, inspiration, and encouragement of this forum of resourceful and knowledgeable people.

Thanks, everybody!

 

[aida2003]

I hope you'll heed the advice given here. The posters have nothing to gain from you, so you can be sure they are at least 99.9% sincere with you. EJ maybe was 0.01% sincere with you if that.
You've got good assets, but if kept with EJ it will dwindle fast

 

[friar1610]

I'm 65, been retired for 9 yrs, pension + social security is $100,000 annually, $850,000 in investments which we haven't tapped yet. Currently have $650,000 invested with Edward Jones in mutual funds and bonds, 2/3 IRAs. The remaining $200,000 is invested in the Wisconsin Retirement Fund IRA. I am not too thrilled with the return on the EJ investments over the past 12 years. I'm considering moving the funds to another investor, such as Fisher Investments. I am not real knowledgeable about investing to do this myself without having some sort of management company involved. My wife and I love to travel, mostly in the U.S. by car, but we do get to Europe on river cruises on occassion. We live in Wisconsin but spend 3 months in Florida during the winter. We would like our investments to help us maintain this while we can still travel and enjoy life.

Welcome. Your situation is similar to mine in terms of years retired, pension, etc. The investment amount is similar but the specific numbers are a bit different. I echo the advice of those who suggested you take a close look at Vanguard after a period of self education. I paid much more than I needed to in the past to invest. For a long while now I have been a very happy Vanguard index investor.

One thing you might want to think about re: investments/advisors, etc. If you and your wife are more or less the same age, the actuaries say you will die before she does. I think about that with respect to my wife. I want to leave her with a very simple, very cheap to manage portfolio so she won't get ripped off by those who prey on little old ladies who are widowed. Just something to think about.