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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Just 10%? Most of my holdings outside the tsp are etf.

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Well, today we paid off the last 22 years of our mortgage.  We sold/closed our investment property last week that we bought in 2013.  We did well on it and rolled that money up with some savings and p

Can't really talk about it with RL friends and most of it is pre-tax, but sat down with the wife and figured out that the household is officially in the two comma club. Ten years ago I was unemployed

My big win was in getting educated on personal finance, getting organized, and making a plan. Details: 1. Learned the value of an HSA and contributed for 2019 and 2020. 2. Got my wife’s

I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Just 10%? Most of my holdings outside the tsp are etf.

Good point. I was going to start with 10% to test the waters a little with the financial company. If I like what I see after some time, I'll invest in a lot more. Currently I maximize my contributions towards 401k and IRA and I have some money invested in stocks and mutual funds but I have a huge chunk of dough just sitting in online savings accounts. I want to change that.

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Find a fee based advisor in your area.

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Find a fee based advisor in your area.

Thanks this is a good suggestion. The advisor I'm speaking with tomorrow is not fee-based.

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Find a fee based advisor in your area.

Thanks this is a good suggestion. The advisor I'm speaking with tomorrow is not fee-based.

Yeah you should talk to a few before you give them any of your money. The argument against commission based advisors is they inherently are working for themselves, and not you. Not all of them but some push specific products, get a bonus for selling X amount of those products, and the fee structures aren't always clear. With a fee based advisor you avoid most of that, and the amount you are paying them for the service is much more defined.

They say that if an advisor is telling you what he is going to do for you, about how he makes all kinds of scratch for his clients, run the other direction. This is about you and your money, not them.

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Find a fee based advisor in your area.
Thanks this is a good suggestion. The advisor I'm speaking with tomorrow is not fee-based.

Which means he has reason to offer things you may not need. Not that he's necessarily unethical but there's an inherent conflict of interest if he makes more by selling more.

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You do not give up gains by adding bonds (so long as you rebalance) and you reduce volatility

You have some links that demonstrate this? I'm looking for some real # crunching that demonstrates that having the % of your portofolio that's bonds be your age has the same return as being all in say an s&p 500 index. Like I've been saying, I don't see why I'd care about volatility when I'm so far out from retirement.

I mostly agree but the emotional side is huge. For those of us who were in the market in 08, we can use our actions then to tell us what we will probably do during the next drop. Personally, I stayed the course and remember many conversations with my boss at the time when I advocated for staying the course. those who sold off their stocks are likely to do that next time and are better off having more in bonds.

It sure is. I know enough to know I don't know squat about the stock market so I just stay the course with an S&P 500 index. The only decision I still need to make is when and how much to rebalance.

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Find a fee based advisor in your area.

Thanks this is a good suggestion. The advisor I'm speaking with tomorrow is not fee-based.

I've got w separate accounts each with different structures. The one is with individual stocks that were inherited and still have them with my father's broker that charges a fee per trade. He has advised some good trades but I hate that the commission is a lot higher than say e trade and of course when I call he always has some to suggest as buys etc.

My personal account I have with someone charging the 1% fee of the account value. I like that this gives him motivation to grow the account larger but also from studying the boglehead mindset of keeping fees to a minimum I realize 1% is a lot. I prefer this though as I haven't had the time to get to a comfort level of me selecting the ETFS to have the right allocation and not lose sleep over it.

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Find a fee based advisor in your area.
Thanks this is a good suggestion. The advisor I'm speaking with tomorrow is not fee-based.
I've got w separate accounts each with different structures. The one is with individual stocks that were inherited and still have them with my father's broker that charges a fee per trade. He has advised some good trades but I hate that the commission is a lot higher than say e trade and of course when I call he always has some to suggest as buys etc.

My personal account I have with someone charging the 1% fee of the account value. I like that this gives him motivation to grow the account larger but also from studying the boglehead mindset of keeping fees to a minimum I realize 1% is a lot. I prefer this though as I haven't had the time to get to a comfort level of me selecting the ETFS to have the right allocation and not lose sleep over it.

on the last part, why not just go with vanguard ETFs (low fees) in the basic sectors at an allocation advised by any source you respect? Is your advisor making more than 1% more than VTI (one of the most basic ETFs available) would make?

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RIP Thomas Stanley - author of Millionaire Next Door - 71 y.o. died in car crash saturday afternoon

That book has probably had more impact on my method of personal finance than any other.

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RIP Thomas Stanley - author of Millionaire Next Door - 71 y.o. died in car crash saturday afternoon

That book has probably had more impact on my method of personal finance than any other.

Very good book about managing your life by not being extravagant.

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Best book I ever read on the topic: The Four Pillars of Investing

  • The Theory of Investing­"Do not expect high returns without risks."
  • The History of Investing­"About once every generation, the markets go barking mad. If you are unprepared, you are sure to fail."
  • The Psychology of Investing­"Identify the era's conventional wisdom and assume that it is wrong. More often than not, it is."
  • The Business of Investing­"The stockbroker services his clients in the same way that Bonnie and Clyde serviced banks."

Breaks down some of the complexity into easy to understand lessons. :thumbup:

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Very steep. If you do meet with him I'd like to see what he recommends. It should be good for some hilarity if you come back with Lord Abbot funds, a variable annuity, and some unlisted REITs.

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Very steep. If you do meet with him I'd like to see what he recommends. It should be good for some hilarity if you come back with Lord Abbot funds, a variable annuity, and some unlisted REITs.

He's already told me that they're basically just going to recommend investing in ETFs. In the past, he's tried to encourage me to get a whole life insurance policy but I've politely declined him every time. The more I think about this, I'm leaning towards not hiring a financial adviser.

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Very steep. If you do meet with him I'd like to see what he recommends. It should be good for some hilarity if you come back with Lord Abbot funds, a variable annuity, and some unlisted REITs.

He's already told me that they're basically just going to recommend investing in ETFs. In the past, he's tried to encourage me to get a whole life insurance policy but I've politely declined him every time. The more I think about this, I'm leaning towards not hiring a financial adviser.

If someone has tried to sell you a cash value policy numerous times and you have the where with all to see through that trash and are smart enough to separate your investments from your insurance then I certainly wouldn't be investing with that guy... Either figure it out on your own or really nail down an advisor who you trust to have your best interest in mind... Focus on somebody who is willing to provide you with an education on whatever it is that they are proposing... That way your decision can be based on what you've learned to be true and not just conjecture and sales fluff

Education will take all of us to a different level in our personal finance... Good luck and I hope things work out for you

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Agree with Lloyd. Whole life is one of the worst possible "investment" vehicles out there, this is basically like buying encyclopedias from a guy that comes to your door.

Go listen to what he has to say but I'd then contact a fee base advisor or two and hear them out also. Anyone trying to sell you whole life, private REITs, or funds from only one investment house are peddlers more than advisors.

Also there is no shame in going to an advisor, a lot of people don't want to do investing on their own. That's fine, picking a bunch of ETFs or funds based on track record when you don't know what you are doing can be counter-productive. Good advisers are worth their weight in gold, bad advisors are going to cost you tens of thousands of dollars flipping you heavy fee instruments.

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Agree with Lloyd. Whole life is one of the worst possible "investment" vehicles out there, this is basically like buying encyclopedias from a guy that comes to your door.

Go listen to what he has to say but I'd then contact a fee base advisor or two and hear them out also. Anyone trying to sell you whole life, private REITs, or funds from only one investment house are peddlers more than advisors.

Also there is no shame in going to an advisor, a lot of people don't want to do investing on their own. That's fine, picking a bunch of ETFs or funds based on track record when you don't know what you are doing can be counter-productive. Good advisers are worth their weight in gold, bad advisors are going to cost you tens of thousands of dollars flipping you heavy fee instruments.

Yeah I think at a minimum I'll be contacting some other financial companies. Thanks for sharing that link with the fee-based advisers. My wife and I are not financially savvy but we are smart with our money (i.e. we don't spend frivolously). I don't make these types of major decisions without first doing a ton of research.

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Very steep. If you do meet with him I'd like to see what he recommends. It should be good for some hilarity if you come back with Lord Abbot funds, a variable annuity, and some unlisted REITs.

He's already told me that they're basically just going to recommend investing in ETFs. In the past, he's tried to encourage me to get a whole life insurance policy but I've politely declined him every time. The more I think about this, I'm leaning towards not hiring a financial adviser.

Run away!

We made this mistake early in my career. Probably the worst financial mistake we made. Took us a few years before we decided to get out of it and at that point we had enough equity to purchase a good used car (which means we lost more but I didn't bother to figure out how much). That (dumping the WL policy) was 7 years ago now.

Then there's your comment "every time" which means he either doesn't get that you don't want it or is pushing things you don't want. Either way, he's not the adviser you need.

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Agree with Lloyd. Whole life is one of the worst possible "investment" vehicles out there, this is basically like buying encyclopedias from a guy that comes to your door.

Go listen to what he has to say but I'd then contact a fee base advisor or two and hear them out also. Anyone trying to sell you whole life, private REITs, or funds from only one investment house are peddlers more than advisors.

Also there is no shame in going to an advisor, a lot of people don't want to do investing on their own. That's fine, picking a bunch of ETFs or funds based on track record when you don't know what you are doing can be counter-productive. Good advisers are worth their weight in gold, bad advisors are going to cost you tens of thousands of dollars flipping you heavy fee instruments.

Yeah I think at a minimum I'll be contacting some other financial companies. Thanks for sharing that link with the fee-based advisers. My wife and I are not financially savvy but we are smart with our money (i.e. we don't spend frivolously). I don't make these types of major decisions without first doing a ton of research.

Go to your library, get Bogleheads Guide to Investment. Invest in yourself the 3 hours it takes to read it. If you still want an advisor adter reading that check back in

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Very steep. If you do meet with him I'd like to see what he recommends. It should be good for some hilarity if you come back with Lord Abbot funds, a variable annuity, and some unlisted REITs.

He's already told me that they're basically just going to recommend investing in ETFs. In the past, he's tried to encourage me to get a whole life insurance policy but I've politely declined him every time. The more I think about this, I'm leaning towards not hiring a financial adviser.

work colleague just met with a financial advisor who also recommended whole life. This must be standard practice.
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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Very steep. If you do meet with him I'd like to see what he recommends. It should be good for some hilarity if you come back with Lord Abbot funds, a variable annuity, and some unlisted REITs.

He's already told me that they're basically just going to recommend investing in ETFs. In the past, he's tried to encourage me to get a whole life insurance policy but I've politely declined him every time. The more I think about this, I'm leaning towards not hiring a financial adviser.

work colleague just met with a financial advisor who also recommended whole life. This must be standard practice.
it depends. My guy is a friend so not sure if that's why but he recommended term for me.

he said if I had more money I was putting away and was hitting all my limits then it's a good vehicle to save some money. :shrug:

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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Very steep. If you do meet with him I'd like to see what he recommends. It should be good for some hilarity if you come back with Lord Abbot funds, a variable annuity, and some unlisted REITs.

He's already told me that they're basically just going to recommend investing in ETFs. In the past, he's tried to encourage me to get a whole life insurance policy but I've politely declined him every time. The more I think about this, I'm leaning towards not hiring a financial adviser.

work colleague just met with a financial advisor who also recommended whole life. This must be standard practice.
it depends. My guy is a friend so not sure if that's why but he recommended term for me.

he said if I had more money I was putting away and was hitting all my limits then it's a good vehicle to save some money. :shrug:

I guess if you're already maxing out 401k, Roth and contributing your target amount to 529? That's great if you are.
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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Very steep. If you do meet with him I'd like to see what he recommends. It should be good for some hilarity if you come back with Lord Abbot funds, a variable annuity, and some unlisted REITs.

He's already told me that they're basically just going to recommend investing in ETFs. In the past, he's tried to encourage me to get a whole life insurance policy but I've politely declined him every time. The more I think about this, I'm leaning towards not hiring a financial adviser.

work colleague just met with a financial advisor who also recommended whole life. This must be standard practice.
it depends. My guy is a friend so not sure if that's why but he recommended term for me.

he said if I had more money I was putting away and was hitting all my limits then it's a good vehicle to save some money. :shrug:

I guess if you're already maxing out 401k, Roth and contributing your target amount to 529? That's great if you are.

I'd still look at tax exempt muni-bonds before anything cash value... Not sure cv ever makes sense... Make sure if you're married to max out either a spousal IRA as well or have your lady max a Roth if she works

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I'm not. That was my point. So he told me term was better for me.

Term is better for everyone.

Why would anyone pay all the while life fees and have all the restrictions, when they can just have term and buy an s&p index fund?

Your friend recommended term to you because he's your friend.

Edited by Doctor Detroit
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I'm meeting with a financial advisor tomorrow and planning to discuss investment in ETFs. Are ETFs a good, safe strategy to invest let's say 1/10th of my savings? The advisor would get a 1% cut. That seems a little steep but I have no clue.

Very steep. If you do meet with him I'd like to see what he recommends. It should be good for some hilarity if you come back with Lord Abbot funds, a variable annuity, and some unlisted REITs.

He's already told me that they're basically just going to recommend investing in ETFs. In the past, he's tried to encourage me to get a whole life insurance policy but I've politely declined him every time. The more I think about this, I'm leaning towards not hiring a financial adviser.

work colleague just met with a financial advisor who also recommended whole life. This must be standard practice.
it depends. My guy is a friend so not sure if that's why but he recommended term for me.

he said if I had more money I was putting away and was hitting all my limits then it's a good vehicle to save some money. :shrug:

I guess if you're already maxing out 401k, Roth and contributing your target amount to 529? That's great if you are.

I am and I still always thought term is the better option.

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can't find the tax refund thread through search, so I'll ask here...

Filed our taxes a couple of weeks ago with all the proper forms. Just received an adjusted form from our brokerage so I went back to our tax site (I do our own), plugged in the adjusted numbers and it looks like we should get almost $200 more back. IRS has already accepted our filing with the refund to be posted in two days. Is it wiser to (A) re-file the adjusted amount before receiving the refund (B) forget about it as the risk of audit supposedly increases (I think we'd be fine but you never know and it would be a headache) or © wait until April to see if there's any more adjustments coming? I'd pay $200 to not be audited - again, I don't think we've done anything wrong, but it would be a hassle. If we owed more (or less of a refund) I'd refile for sure.

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can't find the tax refund thread through search, so I'll ask here...

Filed our taxes a couple of weeks ago with all the proper forms. Just received an adjusted form from our brokerage so I went back to our tax site (I do our own), plugged in the adjusted numbers and it looks like we should get almost $200 more back. IRS has already accepted our filing with the refund to be posted in two days. Is it wiser to (A) re-file the adjusted amount before receiving the refund (B) forget about it as the risk of audit supposedly increases (I think we'd be fine but you never know and it would be a headache) or © wait until April to see if there's any more adjustments coming? I'd pay $200 to not be audited - again, I don't think we've done anything wrong, but it would be a hassle. If we owed more (or less of a refund) I'd refile for sure.

C. Wait. Once you are confident no additional amended 1099s are coming, file an amended return and get your $200.

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Agree with Lloyd. Whole life is one of the worst possible "investment" vehicles out there, this is basically like buying encyclopedias from a guy that comes to your door.

Go listen to what he has to say but I'd then contact a fee base advisor or two and hear them out also. Anyone trying to sell you whole life, private REITs, or funds from only one investment house are peddlers more than advisors.

Also there is no shame in going to an advisor, a lot of people don't want to do investing on their own. That's fine, picking a bunch of ETFs or funds based on track record when you don't know what you are doing can be counter-productive. Good advisers are worth their weight in gold, bad advisors are going to cost you tens of thousands of dollars flipping you heavy fee instruments.

Yeah I think at a minimum I'll be contacting some other financial companies. Thanks for sharing that link with the fee-based advisers. My wife and I are not financially savvy but we are smart with our money (i.e. we don't spend frivolously). I don't make these types of major decisions without first doing a ton of research.

Go to your library, get Bogleheads Guide to Investment. Invest in yourself the 3 hours it takes to read it. If you still want an advisor adter reading that check back in

This is great advice. Pick a solid, basic book on investing like Bogleheads or Four Pillars of Investing. It will be surprising just how easy it is to invest on your own. There is no magic or crystal ball that the financial gurus have hidden away.

I thought I was getting screwed over by a broker about 15 years ago and could not wait to fire him after reading just a few simple investing books. There are inexpensive ways to invest at places such as Vanguard and Fidelity.

It may not be sexy to invest in a few index funds but keeping it simple means you do not have to spend much time on your investments. Choose your allocation. Rebalance annually. Live your life.

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Agree with Lloyd. Whole life is one of the worst possible "investment" vehicles out there, this is basically like buying encyclopedias from a guy that comes to your door.

Go listen to what he has to say but I'd then contact a fee base advisor or two and hear them out also. Anyone trying to sell you whole life, private REITs, or funds from only one investment house are peddlers more than advisors.

Also there is no shame in going to an advisor, a lot of people don't want to do investing on their own. That's fine, picking a bunch of ETFs or funds based on track record when you don't know what you are doing can be counter-productive. Good advisers are worth their weight in gold, bad advisors are going to cost you tens of thousands of dollars flipping you heavy fee instruments.

Yeah I think at a minimum I'll be contacting some other financial companies. Thanks for sharing that link with the fee-based advisers. My wife and I are not financially savvy but we are smart with our money (i.e. we don't spend frivolously). I don't make these types of major decisions without first doing a ton of research.

Go to your library, get Bogleheads Guide to Investment. Invest in yourself the 3 hours it takes to read it. If you still want an advisor adter reading that check back in

This is great advice. Pick a solid, basic book on investing like Bogleheads or Four Pillars of Investing. It will be surprising just how easy it is to invest on your own. There is no magic or crystal ball that the financial gurus have hidden away.

I thought I was getting screwed over by a broker about 15 years ago and could not wait to fire him after reading just a few simple investing books. There are inexpensive ways to invest at places such as Vanguard and Fidelity.

It may not be sexy to invest in a few index funds but keeping it simple means you do not have to spend much time on your investments. Choose your allocation. Rebalance annually. Live your life.

Yup I just placed a hold for the book that Wilked recommended. After reading everyone's advice, I'm going to take a stab at investing on my own (I'm already doing a little bit anyways). I can always go with an adviser later on if necessary. Great advice in here.

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Agree with Lloyd. Whole life is one of the worst possible "investment" vehicles out there, this is basically like buying encyclopedias from a guy that comes to your door.

Go listen to what he has to say but I'd then contact a fee base advisor or two and hear them out also. Anyone trying to sell you whole life, private REITs, or funds from only one investment house are peddlers more than advisors.

Also there is no shame in going to an advisor, a lot of people don't want to do investing on their own. That's fine, picking a bunch of ETFs or funds based on track record when you don't know what you are doing can be counter-productive. Good advisers are worth their weight in gold, bad advisors are going to cost you tens of thousands of dollars flipping you heavy fee instruments.

Yeah I think at a minimum I'll be contacting some other financial companies. Thanks for sharing that link with the fee-based advisers. My wife and I are not financially savvy but we are smart with our money (i.e. we don't spend frivolously). I don't make these types of major decisions without first doing a ton of research.

If you want to track your portfolio easily and still use ETFs, you could try betterment https://www.betterment.com/They charge a small % (0.25% if over $10k, 0.15% if over $100k) without trade or transaction fees. Very simple interface that lets you set risk tolerance etc.

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Question re: hybrid student loan rates...

My wife has 2 federal loans totaling 138k. About 98k is @ 7.9% and the balance is 6.8%. It's a high balance but luckily we bring home enough to make the minimum payments and extra. The minimum payments are $1,800 but we normally pay $4,000 / month.

I'm looking into consolidating these for a lower interest rate. I've come across a "hybrid rate" which basically means, for example, the first 5 years would be say 5.5% and year 6 (and onward) would be a variable rate. The variable portion doesn't bother me because we're on a path to pay these off in less than 5 years anyway. I've plugged the numbers into a calculator (payoff.io) and lowering my 7.9/6.8 loans down to 5.8 or even 6.0 would save us about 5,000 over the course of the loan.

Is it worth it to re-finance to save 5,000 on a 138k loan?

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Agree with Lloyd. Whole life is one of the worst possible "investment" vehicles out there, this is basically like buying encyclopedias from a guy that comes to your door.

Go listen to what he has to say but I'd then contact a fee base advisor or two and hear them out also. Anyone trying to sell you whole life, private REITs, or funds from only one investment house are peddlers more than advisors.

Also there is no shame in going to an advisor, a lot of people don't want to do investing on their own. That's fine, picking a bunch of ETFs or funds based on track record when you don't know what you are doing can be counter-productive. Good advisers are worth their weight in gold, bad advisors are going to cost you tens of thousands of dollars flipping you heavy fee instruments.

Yeah I think at a minimum I'll be contacting some other financial companies. Thanks for sharing that link with the fee-based advisers. My wife and I are not financially savvy but we are smart with our money (i.e. we don't spend frivolously). I don't make these types of major decisions without first doing a ton of research.

If you want to track your portfolio easily and still use ETFs, you could try betterment https://www.betterment.com/They charge a small % (0.25% if over $10k, 0.15% if over $100k) without trade or transaction fees. Very simple interface that lets you set risk tolerance etc.

even the notoriously cheap mr. money mustache recommends betterment: http://www.mrmoneymustache.com/2014/11/04/why-i-put-my-last-100000-into-betterment/

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Question re: hybrid student loan rates...

My wife has 2 federal loans totaling 138k. About 98k is @ 7.9% and the balance is 6.8%. It's a high balance but luckily we bring home enough to make the minimum payments and extra. The minimum payments are $1,800 but we normally pay $4,000 / month.

I'm looking into consolidating these for a lower interest rate. I've come across a "hybrid rate" which basically means, for example, the first 5 years would be say 5.5% and year 6 (and onward) would be a variable rate. The variable portion doesn't bother me because we're on a path to pay these off in less than 5 years anyway. I've plugged the numbers into a calculator (payoff.io) and lowering my 7.9/6.8 loans down to 5.8 or even 6.0 would save us about 5,000 over the course of the loan.

Is it worth it to re-finance to save 5,000 on a 138k loan?

You are paying almost $10k in interest each year, that is a lot of dough.

How many consolidation programs have you contacted? Contact at least 3, my guy says you should be able to do better than what you preposed.

Otherwise keep up the $4k/month and a couple years you will be counting the days til it reads zero

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Question re: hybrid student loan rates...

My wife has 2 federal loans totaling 138k. About 98k is @ 7.9% and the balance is 6.8%. It's a high balance but luckily we bring home enough to make the minimum payments and extra. The minimum payments are $1,800 but we normally pay $4,000 / month.

I'm looking into consolidating these for a lower interest rate. I've come across a "hybrid rate" which basically means, for example, the first 5 years would be say 5.5% and year 6 (and onward) would be a variable rate. The variable portion doesn't bother me because we're on a path to pay these off in less than 5 years anyway. I've plugged the numbers into a calculator (payoff.io) and lowering my 7.9/6.8 loans down to 5.8 or even 6.0 would save us about 5,000 over the course of the loan.

Is it worth it to re-finance to save 5,000 on a 138k loan?

You are paying almost $10k in interest each year, that is a lot of dough.

How many consolidation programs have you contacted? Contact at least 3, my guy says you should be able to do better than what you preposed.

Otherwise keep up the $4k/month and a couple years you will be counting the days til it reads zero

holy chit, i hope she is a famous surgeon.
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I need help (again).

Once again house hunting - almost purchased something last Fall but fell through.

Here's my story - I don't NEED a house, I really WANT a house and would enjoy the investment.

My struggle is career...I've shot up the company ladder quickly due to being mobile. Moving from place to place wherever the next chance for a promotion was.

I hate the idea of being "locked in" somewhere. However, this is year 4 in the Philly area for me...as long as I've ever stayed somewhere. There could be a job opening tomorrow in Florida, there could be a job opening 4 years from now in New Mexico. You just never know in my company/business. I'm not yet at the level I'd like to be, I want to move up another level at some point but simply can't without moving. We're not headquartered anywhere near here, and I'm a local rep.

I am paid very well.

I have a years worth of salary in savings doing nothing

I have 2 years worth of salary in stocks/funds

I have 10 years worth of salary in stocks/funds that will vest and likely grow over the next 5-10 years unless something catastrophic happens (this money is currently unvested and not available)

Unmarried

No children

My income isn't necessarily static - goes up and down based on commission/bonus money but relatively stable.

I'm looking at new homes only. Within my ability to comfortably pay 20% down and the mortgage payment for now. I don't have quite enough to just buy the home outright.

Growing up poor with parents who lost their jobs on a yearly basis though, I do get nervous about locking into something for 30 years when A. I can see myself moving again for the right opportunity and B. my income could drop by 50% if the market goes bad or a health issue occurs (etc, etc). How does one overcome these types of fears generally? Just give in and see what happens?

On the other hand. I want a home. I want to invest in my future via real estate. I would enjoy some privacy of non apartment/condo life. I might want a family in the future (although I doubt it) and I'd buy big enough to facilitate that. I have money just sitting in savings doing nothing. Sitting in some funds not making much.

What do you do? (PM's are appreciated too)

Edited by John Bender
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I need help (again).

Once again house hunting - almost purchased something last Fall but fell through.

Here's my story - I don't NEED a house, I really WANT a house and would enjoy the investment.

My struggle is career...I've shot up the company ladder quickly due to being mobile. Moving from place to place wherever the next chance for a promotion was.

I hate the idea of being "locked in" somewhere. However, this is year 4 in the Philly area for me...as long as I've ever stayed somewhere. There could be a job opening tomorrow in Florida, there could be a job opening 4 years from now in New Mexico. You just never know in my company/business. I'm not yet at the level I'd like to be, I want to move up another level at some point but simply can't without moving. We're not headquartered anywhere near here, and I'm a local rep.

I am paid very well.

I have a years worth of salary in savings doing nothing

I have 2 years worth of salary in stocks/funds

I have 10 years worth of salary in stocks/funds that will vest and likely grow over the next 5-10 years unless something catastrophic happens (this money is currently unvested and not available)

Unmarried

No children

My income isn't necessarily static - goes up and down based on commission/bonus money but relatively stable.

I'm looking at new homes only. Within my ability to comfortably pay 20% down and the mortgage payment for now. I don't have quite enough to just buy the home outright.

Growing up poor with parents who lost their jobs on a yearly basis though, I do get nervous about locking into something for 30 years when A. I can see myself moving again for the right opportunity and B. my income could drop by 50% if the market goes bad or a health issue occurs (etc, etc). How does one overcome these types of fears generally? Just give in and see what happens?

On the other hand. I want a home. I want to invest in my future via real estate. I would enjoy some privacy of non apartment/condo life. I might want a family in the future (although I doubt it) and I'd buy big enough to facilitate that. I have money just sitting in savings doing nothing. Sitting in some funds not making much.

What do you do? (PM's are appreciated too)

Unless you're sure you'll be living in the same city for a couple years (because of current job or similar job), I wouldn't buy.

You definitely don't want to play landlord several states away.

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So just never buy a home?

I'm not sure if I'll be living here in 5 years. I might not get another opportunity for 15 years. At that point, why not just be a life long renter?

Understood on your point wilked.

It would be nice to put some of my savings to work and invest in the purchase of what may or may not be a permanent home.

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So just never buy a home?

I'm not sure if I'll be living here in 5 years. I might not get another opportunity for 15 years. At that point, why not just be a life long renter?

Understood on your point wilked.

It would be nice to put some of my savings to work and invest in the purchase of what may or may not be a permanent home.

The home you live in is not an investment. It's a money pit. You want to use money to invest in real estate, buy an REIT Index Fund.

There will come a time when you know you will be settling down in an area for more than 5 years. Buy then if you want.

Edited by Balco
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So just never buy a home?

I'm not sure if I'll be living here in 5 years. I might not get another opportunity for 15 years. At that point, why not just be a life long renter?

Understood on your point wilked.

It would be nice to put some of my savings to work and invest in the purchase of what may or may not be a permanent home.

The home you live in is not an investment. It's a money pit. You want to use money to invest in real estate, buy an REIT Index Fund.

There will come a time when you know you will be settling down in an area for more than 5 years. Buy then if you want.

Right, right, I know. My life, since college, has been not knowing. I might know 10 years from now. I hate paying my landlords mortgage every month.

Why is your savings not working for you now? Why not invest them?

Everyone needs a place to live, but home/ rental should be a lifestyle decision primarily, not financial.

I like to have the years worth of salary in there easily accessible for situations from medical to a weekend away in Vegas. There is plenty invested already. Maybe not smart.

Yeah, I'd only buy if I was planning on settling down for at least 5+ years. Or if you wanted to purchase a place to rent out and plan on being nearby. Land lording, unless you use a management company, can be a real pain in the ###.

Overall, this seems like a good problem to have.

Absolutely it's a good problem to have. I go back and forth on a daily basis here. Turning 34 in a month and starting to see the home ownership joy of one's life passing me by and just resigning myself to being a life long renter. I'd like to retire young...I feel like paying off a home earlier than retirement age, will allow me to do that. Unless I want to go live on a cruise ship 350 days a year, it'd be nice to have a "home" that's paid off so I can retire young

I would enjoy some privacy of non apartment/condo life. I

Why not just rent a house?

Fair point. It's tough for me. I'd like some space (very tough in Philly burbs), I have a dog (a lot of places don't allow them). I'm currently in a condo that's more than big enough. Seems like I'm just spinning my wheels.

I have absolutely zero debt right now. Paid off student loans 2 years ago, I lease my car by choice (like my location, I get ancy after a year or two in the same car). Credit cards are paid off every month and used only for business. I contribute 20% of my paycheck to 401k

I'm now playing the highest NL poker stakes available at the local casino just because I have it (and I have the delusion I'm good enough) and taking a random vacations to weird places like Azores and Russia just because I have nothing better to spend on.

Not sure, just seems like money could be better spent. Or maybe I'm crazy and this is the life I should continue to enjoy. I dunno. Perhaps its a biological clock/psychological issue involved. I have way too much of my money doing nothing. Maybe I'll just start an animal shelter.

Appreciate the advice.

Edited by John Bender
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John, you say you hate paying your landlord rent, how do you feel about paying the same amount in interest to the bank?

You talk about wanting to buy vs rent on housing, but prefer to rent vs buy on cars?

You mention liking a years salary liquid, so house vs rent any affect that.

You talk about joy of home ownership...trust me that is mostly a fable painted by advertisers. Much better to call the landlord when the roof leaks/ boiler breaks/ dishwasher ####s the bed etc etc

Honestly sounds like you might benefit from a psychologist, the things I hear are separate from financial

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John, you say you hate paying your landlord rent, how do you feel about paying the same amount in interest to the bank?

You talk about wanting to buy vs rent on housing, but prefer to rent vs buy on cars?

You mention liking a years salary liquid, so house vs rent any affect that.

You talk about joy of home ownership...trust me that is mostly a fable painted by advertisers. Much better to call the landlord when the roof leaks/ boiler breaks/ dishwasher ####s the bed etc etc

Honestly sounds like you might benefit from a psychologist, the things I hear are separate from financial

I already have one. Just for the fun of it.

It's the personal finance thread wilk.i can't get some of the perspective I seek without giving some of my personal outlook, as neurotic as it may seem to your trained eye in this field.

I'm also well aware of everything you said, because I'm the one who typed it out. I don't have parents to ask these things (I have parents, they just don't have experience with these things). I spoke to a financial advisor, a few of them, I got a hard sell from all 3 on enrolling with their firms investment packages. I've spoken to colleagues but they all have different circumstances than I.

Fbg is great because chances are someone out there has been in the same boat as you and most everyone in this thread knows more than I on this front.

We could spend 3 posts discussing why I lease my car, but I get the point.

Not sure how tongue in cheek the psychologist comment was, but that's why I'm here, seeking personal financial advice. I value anyone's opinion who's more in the know than I, but if you want to be condescending along with your take, I'd rather you just move along to the next moron who comes in here seeking some help in this arena.

Edited by John Bender
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