I'm considering retiring Jan. '13 and putting about $1.3M in retirement funds (currently in CD's and 401k plan) into SMP - Balanced portfolio - moderate risk (50% stocks/50% fixed income/bonds) versus paying 1.0% to 1.25% to a wealth management company , like Raymond James, Fidelity, etc. (Schwab is .35% and .50%).
For now, I hoping to get a 5% gross return. I plan on drawing down about $70k/yr. for 22 years (with increases each yr. for 3% inflation) and I'll have adequate funds for 2 years downmarket (kids will get house and what ever is left over in cash). If anyone out there has been in the Schwab Managed Portfolio or with a wealth management company, what are the major differences? I don't mind paying higher fees if the returns justify it. Any advice or guidance relative to your experience would be appreciated. Many many thanks.
For now, I hoping to get a 5% gross return. I plan on drawing down about $70k/yr. for 22 years (with increases each yr. for 3% inflation) and I'll have adequate funds for 2 years downmarket (kids will get house and what ever is left over in cash). If anyone out there has been in the Schwab Managed Portfolio or with a wealth management company, what are the major differences? I don't mind paying higher fees if the returns justify it. Any advice or guidance relative to your experience would be appreciated. Many many thanks.