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  1. #1
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    Time for an advisor??

    Really no specific question, we’re just getting to the point where some help with our money may be needed.

    Just turned 64 and will contemplate retiring at 65.
    My bride is 9.5 years younger than me.
    We will be closing in on 7 figures in about 1 year, depending on the market.
    We live a pretty simple and debt free life. (Home is paid for also).
    Investments are mostly IRAs in Vanguard Target Date funds including my 401k that is with Voya.
    The 7 figures will include a healthy emergency fund and an annuity that is mature (I think) and currently sits at about $75K.

    About all we’ve ever done with money is save it. We have never used an advisor. I have interviewed a local CFP https://www.augustinefinancial.com/ that comes highly rated from a very close friend that uses them. They charge about 1.37%, hold your hand and do just about everything for you…. OR….We can go with the program that Vanguard offers, still have a dedicated CFP handle our account for about 0.3%. If we turn over approximately $800k there is a difference of $8,480.00 per year. To us, that seems like a lot but I know that 1.37% is in range with what a CFP charges.

    Thoughts from anyone that has been down this same road and input from anyone that uses a CFP would be welcome.
    It's just scary handing what we have busted our ass' for over to someone.

  2. Official Lip Ripper' haftafish22's Avatar
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    #2
    Be hard not to put it in an etf and turn 10% yoy... can you live on 100k yearly?

  3. Member
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    #3
    I managed my money with Voya for years and then moved everything to Vanguard after I retired. I enjoy doing the stock, mutual fund and ETF research. Wife complained and wanted "professional" help. Figured we would try the Vanguard service. While initially was not happy that they sold my Vanguard utilities and medical ETF, along with some other Vanguard funds, I am now making a little more in percent year over year. Biggest thing they did was balance me out between stocks and bonds, and re-balance every quarter. So far am happy with Vanguard's service. I also get the "Independent Advisor for Vanguard Investors" newsletter that I pay for and really like that information. If it weren't for the wife, I would just use that as an investment guide and go it alone.
    I did open a brokerage account with Vanguard that I self manage, I call it my gambling account. I have done very well buying XOM at the bottom last September and today just bought some BOTZ.
    dvl2700

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    #4
    Appreciate your input David.

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    #5
    A fee of 1.37% seems high to me. I have managed accounts with two different companies and each charges 1%. That seems the market rate. The key is to pick the right company. One of mine has done well. One has underperformed.

    I also have a non-managed Vanguard account which has done best of all.

  6. Member
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    #6
    Thanks Tex

  7. Stocks/Investments Moderator boneil's Avatar
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    #7
    I worked with a guy years ago who had an advisor. After a few years of paying the advisor he realized he could have done the same things and that he enjoyed doing it himself. Some people like doing the research, it keeps the mind active. Some people want to pay someone else to do it for them. I would say get an advisor and try them out. You can always change your mind

  8. Member
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    #8
    What are your anticipated expenses in retirement (How much do you want to live off per year)? Do you have retirement plans (Go years, versus slow years?) How you want/need your money in retirement determines if, at this point, you need MORE MONEY or if YOU HAVE ENOUGH. Then the other consideration is how you withdraw your money and it's tax implications; How does that align with your needs and wants. Basically you've done the accumulating, now you're determining your glide path and what it looks like efficiently. Can you do this yourself or do you need an advisor?

    If you go the advisor route make sure you interview and ensure he or she has a fiduciary duty to you. If they start to offer products (whole life, annuities, etc.) and present you with fee structures, make sure you do your due diligence.

  9. Member
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    #9
    The thing is, after retirement can you handle riding out the 10-20-30% swings in the market? I’m 77 and can’t seem to handle them and it adds a lot of anxiety to my life. Right now I am in a cash, CD’s and can’t pull the trigger on a new advisor at .30 percent. We are all different in where we are in life. We both have defined pensions and SS that more than covers our needs and wants. This is what my mind fights all the time, do we want to gamble our savings just to have more to leave our children, or to cover inflation going forward? I have this fear that the stock market is over priced and is facing a 2008 type correction. Right now I am frozen in time, so I appreciate your question. I had an appointment with Schwab, but cancelled at the last minute.
    Last edited by Bassin08; 02-18-2021 at 09:25 AM.

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    #10
    Quote Originally Posted by Bassin08 View Post
    The thing is, after retirement can you handle riding out the 10-20-30% swings in the market? I’m 77 and can’t seem to handle them and it adds a lot of anxiety to my life. Right now I am in a cash, CD’s and can’t pull the trigger on a new advisor at .30 percent. We are all different in where we are in life. We both have defined pensions and SS that more than covers our needs and wants. This is what my mind fights all the time, do we want to gamble our savings just to have more to leave our children, or to cover inflation going forward? I have this fear that the stock market is over priced and is facing a 2008 type correction. Right now I am frozen in time, so I appreciate your question. I had an appointment with Schwab, but cancelled at the last minute.
    This is a great post with more in it than most realize! Thanks for sharing Bassin08......
    1) Know thy self---You know what you can tolerate and what allows you to sleep at night!
    2) Define "Enough"--Pensions and SS more than cover YOUR needs and desires.
    3) We know nothing and do not have a crystal ball. Things COULD happen and they COULDN'T so hindsight should not be an enemy in the form of FOMO (fear of missing out/or having missed out).
    4) When the game is won (by your definition) stop playing! Life is short and when you reach a certain age it's even shorter. Enjoy it with grace and peace!! Pass on your learnings around finances to your children as it might be worth even more than any amount of money you can possibly leave them!

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    #11
    Quote Originally Posted by IMhooked View Post
    This is a great post with more in it than most realize! Thanks for sharing Bassin08......
    1) Know thy self---You know what you can tolerate and what allows you to sleep at night!
    2) Define "Enough"--Pensions and SS more than cover YOUR needs and desires.
    3) We know nothing and do not have a crystal ball. Things COULD happen and they COULDN'T so hindsight should not be an enemy in the form of FOMO (fear of missing out/or having missed out).
    4) When the game is won (by your definition) stop playing! Life is short and when you reach a certain age it's even shorter. Enjoy it with grace and peace!! Pass on your learnings around finances to your children as it might be worth even more than any amount of money you can possibly leave them!
    These are great points to consider, especially if a dip can really mess up your finances. However, in the case of Bassin08, unless he is very happy with making 1.6% on a very long term CD, there is good solid safe funds that will make you 5-10% with very little volatility.

    BTW, I love the suggestion of enjoying life with grace and peace, especially if it is given onto you by the mercy of Christ.

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    #12
    Quote Originally Posted by digthemup View Post
    These are great points to consider, especially if a dip can really mess up your finances. However, in the case of Bassin08, unless he is very happy with making 1.6% on a very long term CD, there is good solid safe funds that will make you 5-10% with very little volatility.

    BTW, I love the suggestion of enjoying life with grace and peace, especially if it is given onto you by the mercy of Christ.
    Well, .45% or less on CD’s is not making me happy, so I have another appointment with a Schwab CFP next week. She has solid credentials, along with experience. She is an independent with a brick and mortar building. We’ll see.

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    #13
    To all those who are retired, I hope you get to do most everything you wish.

    My parents passed away many years ago. They talked about what they were going to do, but mostly kept working and saving until health tied them to home.

    My 5 siblings and I appreciate what we were able to inherit, but our biggest desire was for them to smell the roses they had worked so hard to grow.

    Being born right before the start of the Great Depression, likely skewed their thoughts to continue saving and investing, instead of enjoying life more fully.

    Again, I wish you the best. Enjoy what you have saved, especially if your health will allow.

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    #14
    Quote Originally Posted by Bassin08 View Post
    Well, .45% or less on CD’s is not making me happy, so I have another appointment with a Schwab CFP next week. She has solid credentials, along with experience. She is an independent with a brick and mortar building. We’ll see.
    Bassin08 you seem back and forth. What are you looking to accomplish as a financial goal that will provide you emotional well-being and happiness? More money? Then yes get your $ moving out of low-return investments. Understand this comes with more risk but the risk must be worth the reward. You often times can't have both especially when you are in the late innings of the "game".

    Is the return making you unhappy or do you simply require more?

    What would an ideal meeting with a financial advisor look like? What would be the resulting plan of action moving forward?

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    #15
    Quote Originally Posted by IMhooked View Post
    Bassin08 you seem back and forth. What are you looking to accomplish as a financial goal that will provide you emotional well-being and happiness? More money? Then yes get your $ moving out of low-return investments. Understand this comes with more risk but the risk must be worth the reward. You often times can't have both especially when you are in the late innings of the "game".

    Is the return making you unhappy or do you simply require more?

    What would an ideal meeting with a financial advisor look like? What would be the resulting plan of action moving forward?
    No, I don’t require more. I am just exploring my options to see if there is a different way to improve on what I am doing now. When I was working, we worked under a method (MFCI) “managing for continuous improvement”. I guess that thought process never left me.

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    #16
    I understand the concerns of the unknown, and wanting to do better/more than a few percent per year gain. Semi Retired because of Covid-can't travel like we want. I am also concerned about our government spending and taxes, and the likely inflation and making our current money worth less each and every day by printing more and "priming the pump". Too political to get into here.
    Due to all of the above, I am continuing to work part time at 62 even though my FP, family and friends say I have enough. Scared right now ? yep. But i still try to do fun things and some stuff on my and the wife's bucket list.

    It is hard to go from sacrificing and saving mindset to a spending one.
    dvl2700

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    #17
    Quote Originally Posted by Charles Prestridge View Post
    To all those who are retired, I hope you get to do most everything you wish.

    My parents passed away many years ago. They talked about what they were going to do, but mostly kept working and saving until health tied them to home.

    My 5 siblings and I appreciate what we were able to inherit, but our biggest desire was for them to smell the roses they had worked so hard to grow.

    Being born right before the start of the Great Depression, likely skewed their thoughts to continue saving and investing, instead of enjoying life more fully.

    Again, I wish you the best. Enjoy what you have saved, especially if your health will allow.
    My dad grew up during that time and it shaped his view on money the rest of his life. I think to some degree just feeling secure was the greatest source of happiness. It must have been hell growing up and seeing the financial despair. I hope none of us or our kids ever have to go through that and that is why I think they saved for the future generations.

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    #18
    Quote Originally Posted by Bassin08 View Post
    No, I don’t require more. I am just exploring my options to see if there is a different way to improve on what I am doing now. When I was working, we worked under a method (MFCI) “managing for continuous improvement”. I guess that thought process never left me.
    Bassin,
    There is nothing wrong with being cautious and following a good plan like you seem to have. Since you are going to see an adviser, I would like to suggest 2 funds for you to research and get her thoughts on them.
    These 2 are set aside solely for my wife so that she can be provided well in the even my cores are done, and the Lord needs me to stand watch on His wall.
    Dodge & Cox - DODIX 6.3% very low risk
    Columbia Income Builder - RBBAX 10.2% low risk.

    Bw well and be safe

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    #19
    Quote Originally Posted by dvl2700 View Post
    I understand the concerns of the unknown, and wanting to do better/more than a few percent per year gain. Semi Retired because of Covid-can't travel like we want. I am also concerned about our government spending and taxes, and the likely inflation and making our current money worth less each and every day by printing more and "priming the pump". Too political to get into here.
    Due to all of the above, I am continuing to work part time at 62 even though my FP, family and friends say I have enough. Scared right now ? yep. But i still try to do fun things and some stuff on my and the wife's bucket list.

    It is hard to go from sacrificing and saving mindset to a spending one.
    dvl2700
    Fear is good it keeps you human, and the only fearless heroes I know, they are dead. However, don't let fear freeze you, but act while moving cautiously, though in my life I am blessed to be led by the Holy Spirit while being carried by the right hand of Christ.
    Be well and be safe

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    #20
    Quote Originally Posted by digthemup View Post
    Bassin,
    There is nothing wrong with being cautious and following a good plan like you seem to have. Since you are going to see an adviser, I would like to suggest 2 funds for you to research and get her thoughts on them.
    These 2 are set aside solely for my wife so that she can be provided well in the even my cores are done, and the Lord needs me to stand watch on His wall.
    Dodge & Cox - DODIX 6.3% very low risk
    Columbia Income Builder - RBBAX 10.2% low risk.

    Bw well and be safe
    RBBAX with that 7.5% frontload fee and both you mention with expense ratios higher than .1. As you mentioned in the beginning of this quoted response. "Nothing wrong with being cautious"