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Personal Finance Advice and Education!

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14 minutes ago, Steve Tasker said:

I'm finally at the point where I've maxed out my other financial options and now have excess funds - nothing much, a modest amount - to invest in the market in a regular ol' taxable brokerage account.  My general strategy is low maintenance buy-and-hold; I don't anticipate frequent trading or anything like that.  I will be investing in Vanguard funds/ETFs.

I have my Roth through Vanguard.  I've never had a problem with their service, but I don't really do much there other than making an annual contribution (or setting up weekly contributions) and an occasional rebalance.

Is there any reason I should use another brokerage for these investments other than Vanguard itself?  I think Dentist talks about Merrill Lynch, but I suspect he has a lot more money and trades more regularly than I would anticipate.  What do you guys use, if not directly through Vanguard?  I've heard decent things about TD Ameritrade too, at times.

 

No, just use Vanguard.

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16 hours ago, Steve Tasker said:

I'm finally at the point where I've maxed out my other financial options and now have excess funds - nothing much, a modest amount - to invest in the market in a regular ol' taxable brokerage account.  My general strategy is low maintenance buy-and-hold; I don't anticipate frequent trading or anything like that.  I will be investing in Vanguard funds/ETFs.

I have my Roth through Vanguard.  I've never had a problem with their service, but I don't really do much there other than making an annual contribution (or setting up weekly contributions) and an occasional rebalance.

Is there any reason I should use another brokerage for these investments other than Vanguard itself?  I think Dentist talks about Merrill Lynch, but I suspect he has a lot more money and trades more regularly than I would anticipate.  What do you guys use, if not directly through Vanguard?  I've heard decent things about TD Ameritrade too, at times.

I'm in the same boat, and am looking to diversify into some rental property (plan is to start really small).

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43 minutes ago, Tiger Fan said:

I'm in the same boat, and am looking to diversify into some rental property (plan is to start really small).

You going to do the managing too? What's your estimate on how much of your time that will take up?

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17 hours ago, Binky The Doormat said:

No, just use Vanguard.

Wait a few weeks, after my in person interview with Edward Jones I might have different advice.   

Kidding of course, use vanguard especially for ETFs and as you already use it. 

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1 hour ago, BeTheMatch said:

You going to do the managing too? What's your estimate on how much of your time that will take up?

yeah definitely not low maintenance.

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2 minutes ago, Long Ball Larry said:
1 hour ago, BeTheMatch said:

You going to do the managing too? What's your estimate on how much of your time that will take up?

yeah definitely not low maintenance.

 

Depends.  We have been fortunate to have found a couple that have been redone - so no, repair issues.  We also used a fairly thorough vetting process (paid service) to get good tenants.  We haven't had any issues so far (knock on wood ...) been 3 years.  

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2 hours ago, Tiger Fan said:

I'm in the same boat, and am looking to diversify into some rental property (plan is to start really small).

I'm not into rental property for the reasons articulated by the posters above.  I simply don't have the time or know-how to manage my own rental properties, and the margins on what I could afford at this point as an investment property less management fees....I'm not convinced that is the best investment for me at this point.  Our real estate market here is in a total boom right now....huge seller's market, houses flying off the market with all-cash offers.

I have a lot of clients who do very well in real estate, and I know we have some people here who do as well.  Once you've assembled a large enough real estate portfolio, you can be set for life, for sure.  I don't think it's the right investment vehicle for me though....I can talk about the tax implications of real estate all day, but I understand securities investing a lot better than I do the nuts and bolts of the local real estate market.

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23 minutes ago, Binky The Doormat said:

Depends.  We have been fortunate to have found a couple that have been redone - so no, repair issues.  We also used a fairly thorough vetting process (paid service) to get good tenants.  We haven't had any issues so far (knock on wood ...) been 3 years.  

I don't totally disagree as I have a rental property and on the whole, I can't complain all that much, but it is certainly apples and oranges as compared to Vanguard mutual fund.

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9 minutes ago, Long Ball Larry said:

I don't totally disagree as I have a rental property and on the whole, I can't complain all that much, but it is certainly apples and oranges as compared to Vanguard mutual fund.

No doubt.  

We started for the same reasons - diversification that provides a fairly reliable income stream and hopefully some capital appreciation.  My wife is in real estate so she has more opportunities to see more good properties before they hit market.  

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2 hours ago, BeTheMatch said:

You going to do the managing too? What's your estimate on how much of your time that will take up?

no, will probably pay a management fee.  Still doing a bunch of research

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On 2/11/2017 at 10:14 AM, PinkydaPimp said:

http://www.doughroller.net/retirement-planning/should-you-max-out-your-401k-early-in-the-year/

 

Basically it depends on how your plan is administered.  If you do max out early, one thing i like to do is just route that extra amount to savings or my index funds, vacation fund, etc.  I know last year i maxed out around September.  So i need to look into this with my plan as well. 

The question to ask here is whether or not your plan offers a "true-up" with respect to company match at the end of the year. If they don't, then do not do this. If they do then you don't need to factor the match into your decision-making.

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We always did a certain percentage of gross and maxed out well before year end.  The extra went in as taxed, we just found it a good way to easily save.  

If you don't like the investment options with your 401K, you can take those after-tax dollars out whenever you want and put it somewhere else - and just pay tax on any earnings it made while in there.   

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4 minutes ago, Binky The Doormat said:

We always did a certain percentage of gross and maxed out well before year end.  The extra went in as taxed, we just found it a good way to easily save.  

If you don't like the investment options with your 401K, you can take those after-tax dollars out whenever you want and put it somewhere else - and just pay tax on any earnings it made while in there.   

Even at 1% fund fees you're way better off keeping money tax deferred for as long as possible.  Don't take monies out just for the purpose of lowering fees(unless their super high).  The math doesn't support that.

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6 minutes ago, Sand said:
11 minutes ago, Binky The Doormat said:

We always did a certain percentage of gross and maxed out well before year end.  The extra went in as taxed, we just found it a good way to easily save.  

If you don't like the investment options with your 401K, you can take those after-tax dollars out whenever you want and put it somewhere else - and just pay tax on any earnings it made while in there.   

 

Even at 1% fund fees you're way better off keeping money tax deferred for as long as possible.  Don't take monies out just for the purpose of lowering fees(unless their super high).  The math doesn't support that.

 

We were ok with what our respective companies offered within our 401Ks (not crazy ...but ok) and never moved those dollars - and the fees were relatively low.  I am thinking we could have moved those dollars to a different/separate IRA we already had if it had significantly more attractive investment options ...is that right?

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On 10/02/2017 at 10:56 PM, AAABatteries said:

There's some posts in the thread about 401k contribution strategy but for the life of me I can't find it. Had to do with spreading the contribution so you would not hit the max and max it out early in the year. Can somebody point me in the right direction?  I've tried doing searches but not having any luck.

I had posted about this in this thread or the retirement gamble thread...but can't find it by search on my phone.

Basically, you need to know your plan's rules.  If I put in the $18k max in January, I will only get the company match in January and no match Feb-Dec.  I am paid a decently sized quarterly commission so I have to account for the variations and unexpected monetary influxes (yay for me) to not leave the company money on the table.

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Eta - the reason I don't get a match in Feb-Dec (in the scenario above) is because I'm not contributing.  I have to actually contribute to get the match.

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1 minute ago, xulf said:

Eta - the reason I don't get a match in Feb-Dec (in the scenario above) is because I'm not contributing.  I have to actually contribute to get the match.

But if your plan had a true-up contribution at the end of the year you wouldn't have to worry about it. Like you said, you just have to know the plan rules. 

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5 hours ago, Binky The Doormat said:

We were ok with what our respective companies offered within our 401Ks (not crazy ...but ok) and never moved those dollars - and the fees were relatively low.  I am thinking we could have moved those dollars to a different/separate IRA we already had if it had significantly more attractive investment options ...is that right?

If with those after tax dollars you could have qualified for a regular IRA that's the better place for the money.  All I was trying to say was that having money tax deferred for the longest time possible is a big lever arm that amplifies your wealth - even if you take it out with the 10% penalty.  I was amazed at that last part.  And, if you retire a bit early you can play tax games and movies IRA monies to a Roth tax free or at very low tax rates, further amplifying wealth.  Have a look at the article, and particularly the graph at the bottom here.  

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On 2/11/2017 at 4:53 PM, Steve Tasker said:

I'm finally at the point where I've maxed out my other financial options and now have excess funds - nothing much, a modest amount - to invest in the market in a regular ol' taxable brokerage account.  My general strategy is low maintenance buy-and-hold; I don't anticipate frequent trading or anything like that.  I will be investing in Vanguard funds/ETFs.

I have my Roth through Vanguard.  I've never had a problem with their service, but I don't really do much there other than making an annual contribution (or setting up weekly contributions) and an occasional rebalance.

Is there any reason I should use another brokerage for these investments other than Vanguard itself?  I think Dentist talks about Merrill Lynch, but I suspect he has a lot more money and trades more regularly than I would anticipate.  What do you guys use, if not directly through Vanguard?  I've heard decent things about TD Ameritrade too, at times.

I like Merill Edge still quite a bit.

I no longer trade at all.

I would open an account at TD Ameritrade today if I needed a new account..  the commission free ETFs they have are all you need.

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On 2/11/2017 at 5:53 PM, Steve Tasker said:

I'm finally at the point where I've maxed out my other financial options and now have excess funds - nothing much, a modest amount - to invest in the market in a regular ol' taxable brokerage account.  My general strategy is low maintenance buy-and-hold; I don't anticipate frequent trading or anything like that.  I will be investing in Vanguard funds/ETFs.

I have my Roth through Vanguard.  I've never had a problem with their service, but I don't really do much there other than making an annual contribution (or setting up weekly contributions) and an occasional rebalance.

Is there any reason I should use another brokerage for these investments other than Vanguard itself?  I think Dentist talks about Merrill Lynch, but I suspect he has a lot more money and trades more regularly than I would anticipate.  What do you guys use, if not directly through Vanguard?  I've heard decent things about TD Ameritrade too, at times.

When (if) I get to this point (after all rentals are paid off, 401K max, HSA max, IRA max, 457/403b max, 529s) I think I would pay off my primary residence before investing in a taxable account.

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Looking for advise or thoughts;

DINKs, only debt we have is 1st mortgage and heloc.  1st is 15 yrs at 3.25 and heloc is p - .15.  been prepaying and aggressively trying to zero these out so we can flee trumpville.  1st owes 142 and heloc owes 31.  been knocking the heloc down 1 a mumf, so I have 31 mumfs left.  been overpaying 1st by roughly 1.4 a mumf and my regular p only is aboot 1.2.  I should be out of the 1st in around 54 mumfs.  is there a better way of doing this?  

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On 2/14/2017 at 9:28 AM, Random said:

When (if) I get to this point (after all rentals are paid off, 401K max, HSA max, IRA max, 457/403b max, 529s) I think I would pay off my primary residence before investing in a taxable account.

When you're at that point, sure.  Most don't get to that point. But it depends on your goals.  We pay extra each month just by rounding up to the next hundred, but that's as much as I'll do for now.  We have goals that are about 5 years away, to build a cabin and then 15 years to travel more globally (we're not doing it now because traveling far with 4 kids sucks). I think it's better to invest those dollars than to refinance the house.  Also I'm betting we'll beat 3.25% (plus the tax benefit)

But if you have rentals, your dynamic is different than ours.  Although I do plan on buying rentals when we're settled in an area and can manage the rentals ourselves. 

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I know there has been plenty of discussion on term vs whole life insurance but I am 100% settled on term. Has there been discussion though on pros/cons of particular providers? Obviously can shop for quotes so that's one thing but looking for any particularly positive or negative experiences anyone can share. Thanks. 

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25 minutes ago, RUSF18 said:

I know there has been plenty of discussion on term vs whole life insurance but I am 100% settled on term. Has there been discussion though on pros/cons of particular providers? Obviously can shop for quotes so that's one thing but looking for any particularly positive or negative experiences anyone can share. Thanks. 

Good question - I was contemplating the same.  I think I'm just going with the cheapest option with a highly rated company. 

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Hey All, Looking for some advice, comments.  I've been hanging around here since the yellow days.  I'm 58 years old and I recently retired from a public service job.  I have a pension of around 50,000/year, bringing home after taxes and annuity for the wife, $3500/month.  I have $120,000 in a tax deferred account (457). This is spread across different types of mutual funds.  I have another $520,000 in an another tax deferred account, earning about 2%.   I am still working full time earning about 40,000 /year and plan on working til about 65.

Our house is worth about 120,000, and owe about 90,000 (refinanced and remodeled) monthly payment of $900. .  I have about 50,000 left on my kids student loans.  Monthly payment of $750..  My car has about 7 more months til paid off,  credit card debt of about 5,000.  I'm going to see a financial guy later this week and I'm looking for options from the board.  Any suggestions?  

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1 hour ago, hockeymedic said:

Hey All, Looking for some advice, comments.  I've been hanging around here since the yellow days.  I'm 58 years old and I recently retired from a public service job.  I have a pension of around 50,000/year, bringing home after taxes and annuity for the wife, $3500/month.  I have $120,000 in a tax deferred account (457). This is spread across different types of mutual funds.  I have another $520,000 in an another tax deferred account, earning about 2%.   I am still working full time earning about 40,000 /year and plan on working til about 65.

Our house is worth about 120,000, and owe about 90,000 (refinanced and remodeled) monthly payment of $900. .  I have about 50,000 left on my kids student loans.  Monthly payment of $750..  My car has about 7 more months til paid off,  credit card debt of about 5,000.  I'm going to see a financial guy later this week and I'm looking for options from the board.  Any suggestions?  

Get the car paid off, can you take from a savings account?  Get the credit card paid off.  Keep those paid off.  Take some of what your monthly payment on the car was and put toward a savings account for any car related expenses including your next car and take some of the monthly payment towards the mortgage and student loans.  Can the kids help pay some of their student loans?

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2 hours ago, hockeymedic said:

Hey All, Looking for some advice, comments.  I've been hanging around here since the yellow days.  I'm 58 years old and I recently retired from a public service job.  I have a pension of around 50,000/year, bringing home after taxes and annuity for the wife, $3500/month.  I have $120,000 in a tax deferred account (457). This is spread across different types of mutual funds.  I have another $520,000 in an another tax deferred account, earning about 2%.   I am still working full time earning about 40,000 /year and plan on working til about 65.

Our house is worth about 120,000, and owe about 90,000 (refinanced and remodeled) monthly payment of $900. .  I have about 50,000 left on my kids student loans.  Monthly payment of $750..  My car has about 7 more months til paid off,  credit card debt of about 5,000.  I'm going to see a financial guy later this week and I'm looking for options from the board.  Any suggestions?  

 

What is the $120K invested in?  Is the $520K invested all in treasury bonds?  What are you doing that is earning you $40K - do you expect that amount to grow?  

And most definitely pay that credit card bill off immediately.  

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2 hours ago, hockeymedic said:

Hey All, Looking for some advice, comments.  I've been hanging around here since the yellow days.  I'm 58 years old and I recently retired from a public service job.  I have a pension of around 50,000/year, bringing home after taxes and annuity for the wife, $3500/month.  I have $120,000 in a tax deferred account (457). This is spread across different types of mutual funds.  I have another $520,000 in an another tax deferred account, earning about 2%.   I am still working full time earning about 40,000 /year and plan on working til about 65.

Our house is worth about 120,000, and owe about 90,000 (refinanced and remodeled) monthly payment of $900. .  I have about 50,000 left on my kids student loans.  Monthly payment of $750..  My car has about 7 more months til paid off,  credit card debt of about 5,000.  I'm going to see a financial guy later this week and I'm looking for options from the board.  Any suggestions?  

Other than the thought that you're in very nice shape heading into retirement note that these financial guys love folks like you.  You come in with bundles of cash just asking them to take 1% AUM (which is effing huge, BTW) to handle your investments.   Hopefully your guy will work off of an hourly fee.  From where you are investing for your retirement is pretty straightforward.

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On 2/27/2017 at 10:11 PM, Binky The Doormat said:

What is the $120K invested in?  Is the $520K invested all in treasury bonds?  What are you doing that is earning you $40K - do you expect that amount to grow?  

And most definitely pay that credit card bill off immediately.  

The $120K is in a deferred compensation account.  It is allocated as follows - 38% large cap fund, 5% small cap fund, 14% international fund, 20% mid cap fund, 8% bond fund, and 15% in a stable, consistent percentage account.   The $520K is in an account with my pension fund.  It's percentage is tied to the 10 year Treasury rate, that's adjusted every quarter.

My job is a dispatcher for police and fire, so no, I don't expect that to increase much in the future.  I work so I won't have to pay $1100/month for healthcare through my pension, and it gets me out of the house.  

The CC debt will be paid off shortly.

The financial guy I'm going to see, is used by people I trust, that were in the same line of work I used to do.   I would think that I should get the $520K out of the hands of my pension board and into my hands as soon  as possible.  The question is where to put it.  I'll check back when I get the advice from financial guys and then compare.

Thanks 

On 2/27/2017 at 9:38 PM, dino259 said:

Get the car paid off, can you take from a savings account?  Get the credit card paid off.  Keep those paid off.  Take some of what your monthly payment on the car was and put toward a savings account for any car related expenses including your next car and take some of the monthly payment towards the mortgage and student loans.  Can the kids help pay some of their student loans?

Kids can't help.  CC and car will be paid off shortly.  Thanks Dino.

 

On 2/27/2017 at 10:25 PM, Sand said:

Other than the thought that you're in very nice shape heading into retirement note that these financial guys love folks like you.  You come in with bundles of cash just asking them to take 1% AUM (which is effing huge, BTW) to handle your investments.   Hopefully your guy will work off of an hourly fee.  From where you are investing for your retirement is pretty straightforward.

According to the meetings I've had with the "guy",  he gets paid from the instruments / products he sells.  He has said that he never touches the money.  Guess we'll find out shortly.

Thanks Sand

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10 minutes ago, hockeymedic said:

According to the meetings I've had with the "guy",  he gets paid from the instruments / products he sells.  He has said that he never touches the money.  Guess we'll find out shortly.

This is what Sand is trying to advise against, FWIW.  Don't let the idea that he's not taking money directly from you - ie you're not writing a check to him for his services or he's not withdrawing money out of your account to pay himself - cloud your judgement.  The less transparent a financial advisor's fee structure, the worse the deal you're probably getting.  That's not to say that the guy isn't personally trustworthy or that he's out to scam you, but know that these fees are structured in such a way as to sell financial products with the line you've used here.  It's not transparent, but you're still paying him indirectly, and it's not always easy to quantify how much.

If you aren't comfortable with your own money management, that's fine, I don't even mind guys taking a bigger cut in these types of arrangements as many people simply need this kind of assistance in their financial planning.  But make sure you do your research before you get into anything here.

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hockey medic - do you have a guaranteed pension amount from which the $520K is residing?  If it is something that is guaranteed and can last in perpetuity (outlast what the core amount is ...) I would want to know more about it.  

I have used percentage based financial advisors quite a bit in the past and finally decided that the .75 - 1 % just wasn't worth it.  It really adds up.  As stated earlier by Sand - use a one-time hourly guy ...please.  

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On 2/27/2017 at 7:41 PM, hockeymedic said:

Hey All, Looking for some advice, comments.  I've been hanging around here since the yellow days.  I'm 58 years old and I recently retired from a public service job.  I have a pension of around 50,000/year, bringing home after taxes and annuity for the wife, $3500/month.  I have $120,000 in a tax deferred account (457). This is spread across different types of mutual funds.  I have another $520,000 in an another tax deferred account, earning about 2%.   I am still working full time earning about 40,000 /year and plan on working til about 65.

Our house is worth about 120,000, and owe about 90,000 (refinanced and remodeled) monthly payment of $900. .  I have about 50,000 left on my kids student loans.  Monthly payment of $750..  My car has about 7 more months til paid off,  credit card debt of about 5,000.  I'm going to see a financial guy later this week and I'm looking for options from the board.  Any suggestions?  

You're pretty set.  50k/yr in pension plus an additional 640k and you're willing to work another 7 years pulling in another 40k per.    Well done. 

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53 minutes ago, Binky The Doormat said:

hockey medic - do you have a guaranteed pension amount from which the $520K is residing?  If it is something that is guaranteed and can last in perpetuity (outlast what the core amount is ...) I would want to know more about it.  

I have used percentage based financial advisors quite a bit in the past and finally decided that the .75 - 1 % just wasn't worth it.  It really adds up.  As stated earlier by Sand - use a one-time hourly guy ...please.  

The $520K is in an account in the hands of the pension board.  It is equal to about 8 years of my pension payments.  I agreed to retire 8 years ago at X% (25 years)of my yearly salary, and the pension board put that amount (50K/year) into an account while I continued to work.  I retire at the lesser X% than what my pension would be at Y% for 33 years.  The $520 is liquid, and my monthly pension is separate from that.  

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Just now, hockeymedic said:

The $520K is in an account in the hands of the pension board.  It is equal to about 8 years of my pension payments.  I agreed to retire 8 years ago at X% (25 years)of my yearly salary, and the pension board put that amount (50K/year) into an account while I continued to work.  I retire at the lesser X% than what my pension would be at Y% for 33 years.  The $520 is liquid, and my monthly pension is separate from that.  

 

Sorry man.  I see that now.  Sweet!

Yeah, move that $520K - go low fee funds (Vanguard/Fidelity) mix based on your one-time fee based guy.  

Congrats!  Looks like you are good shape!

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Man, I would've retired by now if I had a 50k/yr after tax pension and another 520k.    That's more than I need.   Cool though if you found a job you like to bring in even more cash and to fill up the day.   

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8 minutes ago, Binky The Doormat said:

Sorry man.  I see that now.  Sweet!

Yeah, move that $520K - go low fee funds (Vanguard/Fidelity) mix based on your one-time fee based guy.  

Congrats!  Looks like you are good shape!

Thanks, I'll check back later to see what what you all think of "the guy's" recommendations.

 

4 minutes ago, NutterButter said:

Man, I would've retired by now if I had a 50k/yr after tax pension and another 520k.    That's more than I need.   Cool though if you found a job you like to bring in even more cash and to fill up the day.   

Just to clarify the $50K is before taxes.  Also buying a annuity to take care of the wife (when I kick off), take home is about $3500/ month after taxes.  But, you are correct, it's not bad.

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6 minutes ago, hockeymedic said:

Thanks, I'll check back later to see what what you all think of "the guy's" recommendations.

 

Just to clarify the $50K is before taxes.  Also buying a annuity to take care of the wife (when I kick off), take home is about $3500/ month after taxes.  But, you are correct, it's not bad.

So maybe $43k+ after.   Still pretty darn good.   Wife doesn't get the pension when you die?   Wife doesn't have anything else regarding pension or retirement or is that mixed into the #'s given?

Edited by NutterButter

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1 hour ago, NutterButter said:

So maybe $43k+ after.   Still pretty darn good.   Wife doesn't get the pension when you die?   Wife doesn't have anything else regarding pension or retirement or is that mixed into the #'s given?

We had a choice, take 100% of pension and payments end upon my death or take a lesser monthly amount and leave her monthly payments til she kicks.  We chose 45% option, so when I die she'll continue to receive 45% of my pension.  We figured that a lot of our expenses would be paid off and then of course she wouldn't have me hanging around spending money either.:P

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8 hours ago, Steve Tasker said:

This is what Sand is trying to advise against, FWIW.  Don't let the idea that he's not taking money directly from you - ie you're not writing a check to him for his services or he's not withdrawing money out of your account to pay himself - cloud your judgement.  The less transparent a financial advisor's fee structure, the worse the deal you're probably getting.  That's not to say that the guy isn't personally trustworthy or that he's out to scam you, but know that these fees are structured in such a way as to sell financial products with the line you've used here.  It's not transparent, but you're still paying him indirectly, and it's not always easy to quantify how much.

If you aren't comfortable with your own money management, that's fine, I don't even mind guys taking a bigger cut in these types of arrangements as many people simply need this kind of assistance in their financial planning.  But make sure you do your research before you get into anything here.

Pretty much.  Just note that some advisors (i'm being a skeptic here) make things sound so complicated that you can't live without buying what they're selling.  They're not.  It's not.  With your pension backup you could very easily just put your money in a 50% total stock ETF, 50% total bond ETF, pay .08% fees per year and be done in those tax deferred accounts.  

Just remember that if your'e paying someone a 1% fee (or the funds he wants to put you in have a 1% fee) you're giving up about a third of your investment returns over time.  If he suggests annuities, private (non-public) REITs, or funds that are front loaded just shake his hand and leave. 

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5 hours ago, hockeymedic said:

We had a choice, take 100% of pension and payments end upon my death or take a lesser monthly amount and leave her monthly payments til she kicks.  We chose 45% option, so when I die she'll continue to receive 45% of my pension.  We figured that a lot of our expenses would be paid off and then of course she wouldn't have me hanging around spending money either.:P

I would have likely made that same choice.  You don't have a massive cash nut waiting for her, but with that reduced amount and the cash you do have she should be ok.  

So far you seem to be making very good decisions here - IMO you've set yourself up quite nicely.

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On 2/27/2017 at 11:20 AM, -OZ- said:

Good question - I was contemplating the same.  I think I'm just going with the cheapest option with a highly rated company. 

I didn't get much traction in my research beyond this. Basically go with a company rated at least A+ from AM Best (it goes to A++) and then cheapest from there. Seems like you can always find examples of people who claim to be getting screwed or mess up the paperwork with any company.

What I'm looking for with 20 year term is going to cost me about $80/month. Not bad. 

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On 3/1/2017 at 11:36 AM, Steve Tasker said:

This is what Sand is trying to advise against, FWIW.  Don't let the idea that he's not taking money directly from you - ie you're not writing a check to him for his services or he's not withdrawing money out of your account to pay himself - cloud your judgement.  The less transparent a financial advisor's fee structure, the worse the deal you're probably getting.  That's not to say that the guy isn't personally trustworthy or that he's out to scam you, but know that these fees are structured in such a way as to sell financial products with the line you've used here.  It's not transparent, but you're still paying him indirectly, and it's not always easy to quantify how much.

If you aren't comfortable with your own money management, that's fine, I don't even mind guys taking a bigger cut in these types of arrangements as many people simply need this kind of assistance in their financial planning.  But make sure you do your research before you get into anything here.

To echo that- the problem with getting paid from the products being sold is different products pay differently. it is very hard to trust the advise being given. It takes a special kind of person to advise against their own interest and for your interest. They are out there- I have done that my whole career in financial services but the vast majority of people will be swayed by what is best for them if there is ever a question. That is why a flat fee adviser is the best route to go because no matter what they advise- they are getting paid the same. It takes their interests out of the equation and now you do not have to worry about their agenda- you just have to worry about their competence.  

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20 hours ago, Chadstroma said:

To echo that- the problem with getting paid from the products being sold is different products pay differently. it is very hard to trust the advise being given. It takes a special kind of person to advise against their own interest and for your interest. They are out there- I have done that my whole career in financial services but the vast majority of people will be swayed by what is best for them if there is ever a question. That is why a flat fee adviser is the best route to go because no matter what they advise- they are getting paid the same. It takes their interests out of the equation and now you do not have to worry about their agenda- you just have to worry about their competence.  

:yes: I've interviewed with two financial planning firms now, both of which get their pay from selling the product, not necessarily by providing the best service possible.  I decided against either place and am now leaning towards establishing my own estate/financial planning practice.  It doesn't pay #### at first so I'd probably do it part time (to start anyway).  

If you can find a good fee only planner, do it.  As much as people rail against Dave Ramsey here, his Endorsed local providers could be a good start.

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I'm at a point where I would like an outside person take a look at my investments and make sure that I'm not doing anything too stupid.  Is it best to work with outside financial planner, or if I have free services available from my investment outfit, should I use them?  I'm planning on doing some intro discussions with both, but just curious if there are some pifalls I need to watch out for.  I'd prefer to keep my $ where it's at (T. Rowe Price) - not because I think they are better, but I don't want to go through a big hassle just to land in a similar spot in another investment house.

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1 hour ago, -OZ- said:

:yes: I've interviewed with two financial planning firms now, both of which get their pay from selling the product, not necessarily by providing the best service possible.  I decided against either place and am now leaning towards establishing my own estate/financial planning practice.  It doesn't pay #### at first so I'd probably do it part time (to start anyway).  

If you can find a good fee only planner, do it.  As much as people rail against Dave Ramsey here, his Endorsed local providers could be a good start.

Any other places i can search for fee only planners where i dont have to give my info?

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18 minutes ago, PinkydaPimp said:

Any other places i can search for fee only planners where i dont have to give my info?

I'm sure there are, perhaps Google.  But I haven't checked. 

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2 hours ago, Brony said:

I'm at a point where I would like an outside person take a look at my investments and make sure that I'm not doing anything too stupid.  Is it best to work with outside financial planner, or if I have free services available from my investment outfit, should I use them?  I'm planning on doing some intro discussions with both, but just curious if there are some pifalls I need to watch out for.  I'd prefer to keep my $ where it's at (T. Rowe Price) - not because I think they are better, but I don't want to go through a big hassle just to land in a similar spot in another investment house.

What would your basis be for doing something "too stupid" that you're worried about? Give an example.

You can definitely use free services offered by your advisor but keep in mind that while the service is free, they could be steering you into higher cost investments.

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How much are you guys paying for fee only financial planners? I'm about to sign with a CFP who is a member of NAPFA and ACA (only a handful in our county). I'm looking at about .5% of assets under management annually for the initial financial plan + ongoing.  Meetings every quarter.  Covers all aspects from retirement goals, estate planning, insurances, tax efficiency,etc.  Sells no products.  Assets all in my name, I control. Recommendation is likely Boglehead approach with a Vanguard/Fidelity.  He's straight up that if you're looking for individual security selection or active trading he's not the guy.  I'm paying for the roadmap to get where we want to go and keeping us on track.  Questions include whether to accelerate paying off mortgages or not, what to do with lump sums, etc.

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1 hour ago, Judge Smails said:

How much are you guys paying for fee only financial planners? I'm about to sign with a CFP who is a member of NAPFA and ACA (only a handful in our county). I'm looking at about .5% of assets under management annually for the initial financial plan + ongoing.  Meetings every quarter.  Covers all aspects from retirement goals, estate planning, insurances, tax efficiency,etc.  Sells no products.  Assets all in my name, I control. Recommendation is likely Boglehead approach with a Vanguard/Fidelity.  He's straight up that if you're looking for individual security selection or active trading he's not the guy.  I'm paying for the roadmap to get where we want to go and keeping us on track.  Questions include whether to accelerate paying off mortgages or not, what to do with lump sums, etc.

 

I would look harder for a CFP that does the hourly one-time fee and get a check up once a year.  You got a couple million?  That's $10K a year ...after-tax money.  Granted its better than the typical 1% up to a million you find with some lowering of percent fees after that, but still a big chunk of change you could use to preserve that nest egg.  

Protect the egg - Albert Brooks.   :D

Especially if you plan to be fairly stable in your holdings - there is minimal need to check-in every 3 months.  

A one-time fee shouldn't be more than $3K or so - that would include most, if not all that stuff you mentioned.  And the annual check up would be less.  

 

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