6 Tips For Do-It-Yourself Retirement Investors

[Steve Fatula]

You have to realize, however, that those people might have money in other types of retirement accounts, like IRA's and taxable accounts.

If you looked at our 401k accounts you would say- not good. But it would not tell the story of all the money in our IRA accounts, banks and brokerage accounts.

Very true, many years ago we rolled over all our 401k's into a rollover IRA, so I guess we have no 401k, we are $0!

 

[capjak]

Did not read all the replies but you can learn so much more by join boglehead forum. You can even get an assessment of your investments/retirement withdrawal etc.. from members that are finacial planners and several that wrote credited books on the subject.

 

[WinniWoman]

Did not read all the replies but you can learn so much more by join boglehead forum. You can even get an assessment of your investments/retirement withdrawal etc.. from members that are finacial planners and several that wrote credited books on the subject.

Funny you should say that. I belonged to that forum years ago and haven't been on it in quite awhile and someone on the Early Retirement forum just suggested I go back on at this stage of my life, so I intend to do that today.

 

[Elan]

You have to realize, however, that those people might have money in other types of retirement accounts, like IRA's and taxable accounts.

If you looked at our 401k accounts you would say- not good. But it would not tell the story of all the money in our IRA accounts, banks and brokerage accounts.

Of course. Might be lots of other sources of retirement income. Data would be much more meaningful if it could be filtered. Nonetheless, those numbers are still shockingly low, IMO.

Sent from my Moto G (5S) Plus using Tapatalk

 

[Brett]

Of course. Might be lots of other sources of retirement income. Data would be much more meaningful if it could be filtered. Nonetheless, those numbers are still shockingly low, IMO.

I've also converted my 401k's to IRAs and my after tax investment accounts are larger than the IRA's but those statistics may indicate a retirement shortfall for some people.

 

[VacationForever]

I have zero in 401K and zero in Rollover IRA. I spent all my IRA money to buy deferred income annuities.

 

[Talent312]

I spent all my IRA money to buy deferred income annuities.

I prefer to keep all my $$ in my own hands (or rather my broker's), as we have enuff retirement income from other sources. At least that way, I can cash in some low-fee ETF's and head down to the candy store whenever I want.

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[VacationForever]

I prefer to keep all my $$ in my own hands (or rather my broker's), as we have enuff retirement income from other sources. At least that way, I can cash in some low-fee ETF's and head down to the candy store whenever I want.

.

You have a nice pension and many of us are not that fortunate.

 

[stmartinfan]

I'm a big believer in having a professional financial planner, but finding a good one can be a challenge. It took us 3 tries, but we've been serviced well by our current guy and he's young enough that he will out live us! My husband, who's a good negotiator, did get us a better pricing structure than the planner's “official” rate, so remember that it can be worth it to ask. He has brought us better investment ideas than we would ever have done on our own and our quarterly meetings help us keep focused on what's happening so we can adjust if necessary. I know there are lots of terrible ones in the industry so it's scary to choose one but it has been a good decision for us.

 

[bogey21]

You have a nice pension and many of us are not that fortunate.

I, too, have a nice pension but only because I made a good decision. I had the option of taking either a lump sum or an annuity (Pension) when I retired. I chose the annuity so I wouldn't have to make investment decisions in my retirement. Even though I managed large investment portfolios during my working career I still think taking the annuity was one of the best investment decisions I ever made...

George

 

[WinniWoman]

I, too, have a nice pension but only because I made a good decision. I had the option of taking either a lump sum or an annuity (Pension) when I retired. I chose the annuity so I wouldn't have to make investment decisions in my retirement. Even though I managed large investment portfolios during my working career I still think taking the annuity was one of the best investment decisions I ever made...

George

IF the annuity is a good deal it works as in your case.

The one at my husband's job only lasts 10 years and is only $1500 per month- and much, much less if you have joint and survivor and all those other options. No thanks. We will take the lump sum and take our chances.

Social security will be our annuity.

 

[WinniWoman]

I'm a big believer in having a professional financial planner, but finding a good one can be a challenge. It took us 3 tries, but we've been serviced well by our current guy and he's young enough that he will out live us! My husband, who's a good negotiator, did get us a better pricing structure than the planner's “official” rate, so remember that it can be worth it to ask. He has brought us better investment ideas than we would ever have done on our own and our quarterly meetings help us keep focused on what's happening so we can adjust if necessary. I know there are lots of terrible ones in the industry so it's scary to choose one but it has been a good decision for us.

I am going through this process now. So far, one nationally recognized CFP company(Fiduciary)wants to take our money and change it over to a Schwalb account and re invest it in all these other funds (not Vanguard, or Fidelity, or T Rowe Price) and wants to charge us a HUGE percentage every single year based on our money, plus $800 to set up the financial plan. The free virtual ZOOM and phone meetings we had were helpful, but those fees- ugh.... This is the second guy I have met with (the other was 2 years ago) and their rates were essentially the same- like $10,000 per year. Except this one takes a percentage and the other charges a set fee of $2500 per quarter. (The other guy wanted to take our money and move it to TD Ameritrade). Over 10-20 years that is a HUGE chunk of change! I'd rather give that money to our son than hand it off to these guys.

This is not to say I don't think there is value in what they do- but EVERY SINGLE year you have to pay these high fees.? No thanks. I can see maybe initially when setting everything up- a set fee. And then maybe hourly advice from then on as needed.

These guys have to be getting money from the brokerage houses for moving money there. This guy says the funds have no loads, no transaction fees or sales commission, but then says that Schwalb can also charge fees. I am suspicious that these planners also might get something every time they make a trade on our behalf. Don't know.

Ummm.. no. I want someone to look at what we have and give us the advice and we will handle it. What is wrong with T Rowe Price? He asked me why we use them. Uh- I don't know- maybe their funds are pretty good? They have good customer service? The question is- why doesn't HE USE T Rowe Price? Or Vanguard? Or Fidelity?

So- Monday I am going to call some local CPA firms that do FP and one more CFP who does charge by the hour or visit.

 

[bogey21]

We will take the lump sum and take our chances.

I'm not saying you are wrong but be careful. When I retired 12 of us retired at the same time. It was called an Early Retirement Window. Its purpose was to allow the new Chief Executive to pick his own key people. I took the annuity. The other 11 took the lump sum. This was in the year 2000. Best I can tell is that only 3 or the 11 have a decent portion of their lump sums left. Some pissed it away. Some didn't budget their expenses well. And others lost their butts when the stock market crashed in 2008...

George

 

[Talent312]

I am a firm believer that one can be their own financial planner. Yeah, like a lawyer who represents himself has a fool for a client, but... If you study enuff and research the options, you can get a handle on it and do about as well as the pros (IMHO). Before I started investing, I read and read, in the years that followed, kept reading. Peter Lynch's "One Up on Wall Street" (1989) was a favorite.

I started planning for retirement about four years out, which again, gave me time to read and study my options. In short, I decided long ago that I would do whatever was necessary to plan my own financial future (even if meant working at a job I found stressful), and if I missed the boat a few times, so be it, at least I wasn't paying someone else to do it for me.
.
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[Bucky]

I am a firm believer that one can be their own financial planner. Yeah, like a lawyer who represents himself has a fool for a client, but... If you study enuff and research the options, you can get a handle on it and do about as well as the pros (IMHO). Before I started investing, I read and read, in the years that followed, kept reading. Peter Lynch's "One Up on Wall Street" (1989) was a favorite.

I started planning for retirement about four years out, which again, gave me time to read and study my options. In short, I decided long ago that I would do whatever was necessary to plan my own financial future (even if meant working at a job I found stressful), and if I missed the boat a few times, so be it, at least I wasn't paying someone else to do it for me.
.
.

During all my years of military service we never made enough to worry about investing, much less worry about letting someone else do it for us! After I retired from the military, thankfully that changed. But, I still manage our portfolio. We’ve done fairly well but who knows, may have been able to do better using someone else. But, I just can’t handle someone making decisions for us! If there is a decision made that’s going to possibly cost us, I want to be the person responsible for making that decision. I can live with that.

 

[AnnaS]

I am going through this process now. So far, one nationally recognized CFP company(Fiduciary)wants to take our money and change it over to a Schwalb account and re invest it in all these other funds (not Vanguard, or Fidelity, or T Rowe Price) and wants to charge us a HUGE percentage every single year based on our money, plus $800 to set up the financial plan. The free virtual ZOOM and phone meetings we had were helpful, but those fees- ugh.... This is the second guy I have met with (the other was 2 years ago) and their rates were essentially the same- like $10,000 per year. Except this one takes a percentage and the other charges a set fee of $2500 per quarter. (The other guy wanted to take our money and move it to TD Ameritrade). Over 10-20 years that is a HUGE chunk of change! I'd rather give that money to our son than hand it off to these guys.

This is not to say I don't think there is value in what they do- but EVERY SINGLE year you have to pay these high fees.? No thanks. I can see maybe initially when setting everything up- a set fee. And then maybe hourly advice from then on as needed.

These guys have to be getting money from the brokerage houses for moving money there. This guy says the funds have no loads, no transaction fees or sales commission, but then says that Schwalb can also charge fees. I am suspicious that these planners also might get something every time they make a trade on our behalf. Don't know.

Ummm.. no. I want someone to look at what we have and give us the advice and we will handle it. What is wrong with T Rowe Price? He asked me why we use them. Uh- I don't know- maybe their funds are pretty good? They have good customer service? The question is- why doesn't HE USE T Rowe Price? Or Vanguard? Or Fidelity?

So- Monday I am going to call some local CPA firms that do FP and one more CFP who does charge by the hour or visit.

Those are some high fees.....I guess it depends on one's portfolio.

I will take a few dollars less in return and take care of it myself.

My problem is I trust no one.......

 

[WinniWoman]

Those are some high fees.....I guess it depends on one's portfolio.

I will take a few dollars less in return and take care of it myself.

My problem is I trust no one.......

Me too.

 

[Blues]

I am a firm believer that one can be their own financial planner. Yeah, like a lawyer who represents himself has a fool for a client, but... If you study enuff and research the options, you can get a handle on it and do about as well as the pros (IMHO). Before I started investing, I read and read, in the years that followed, kept reading. Peter Lynch's "One Up on Wall Street" (1989) was a favorite.

One of the best quotes I ever read, and I have to paraphrase, was basically that in order to wisely pick a financial planner and not get taken for huge expenses and fees, you have to know so much about finance and financial planning that, by that time, you may as well do it yourself.

In any case, I agree with you. There's nothing like studying the subject to make sure you know what you're doing. And if at that point you decide to get outside advice in the form of a financial planner, you'll know what questions to ask and where the pitfalls lie.

 

[Blues]

I am going through this process now. So far, one nationally recognized CFP company(Fiduciary)wants to take our money and change it over to a Schwalb account and re invest it in all these other funds (not Vanguard, or Fidelity, or T Rowe Price) and wants to charge us a HUGE percentage every single year based on our money, plus $800 to set up the financial plan. The free virtual ZOOM and phone meetings we had were helpful, but those fees- ugh....

Mary Ann, if I were you, I'd look into Vanguard's Personal Advisor Service (PAS). If you qualify, they charge 0.3% of assets. Much better than most face-to-face advisors. Of course, you don't get face-to-face, but you do get financial planning and consultations via the web. Other companies have similar services for similar fees, including Fidelity and Betterment. But I'd trust Vanguard with this one. And that's despite the fact that I'm primarily at Fidelity.

 

[am1]

Not bad but some people are not meant to be investors outside their home, possible business and money in the bank. What is best for them paying a financial advisor or sitting on the sidelines watching.

I'm not a fan of financial advisors but for some it is best.

One of the best quotes I ever read, and I have to paraphrase, was basically that in order to wisely pick a financial planner and not get taken for huge expenses and fees, you have to know so much about finance and financial planning that, by that time, you may as well do it yourself.

In any case, I agree with you. There's nothing like studying the subject to make sure you know what you're doing. And if at that point you decide to get outside advice in the form of a financial planner, you'll know what questions to ask and where the pitfalls lie.

met

 

[Steve Fatula]

Mary Ann, if I were you, I'd look into Vanguard's Personal Advisor Service (PAS). If you qualify, they charge 0.3% of assets. Much better than most face-to-face advisors. Of course, you don't get face-to-face, but you do get financial planning and consultations via the web. Other companies have similar services for similar fees, including Fidelity and Betterment. But I'd trust Vanguard with this one. And that's despite the fact that I'm primarily at Fidelity.

Fidelity has offered me portfolio reviews the past several years, including detailed recommendations, discussions about goals, where to invest, detailed analysis and reports, etc. The price they charged me was 0. Not sure why, maybe it depends how much money you have with them.

 

[VacationForever]

Fidelity has offered me portfolio reviews the past several years, including detailed recommendations, discussions about goals, where to invest, detailed analysis and reports, etc. The price they charged me was 0. Not sure why, maybe it depends how much money you have with them.

Yes, this is free. I used to have my money in Fidelity.

 

[Ralph Sir Edward]

This is not intended to be political, but there are many politicians wanting to raise tax rates.

One might want to save money for traditional to roth ira conversions, just in case. You might have only a narrow window to convert ahead of tax changes, should they occur. . .

 

[Brett]

This is not intended to be political, but there are many politicians wanting to raise tax rates.
One might want to save money for traditional to roth ira conversions, just in case. You might have only a narrow window to convert ahead of tax changes, should they occur. . .

all the "politicians just waiting to raise your taxes"
it's huge, HUGE I tell 'ya .... Buh-lieve Me !

but I agree, Vanguard, Schwab and Fidelity will give you free advice on investments, IRA's and guidance on financial advice.

 

[WinniWoman]

Mary Ann, if I were you, I'd look into Vanguard's Personal Advisor Service (PAS). If you qualify, they charge 0.3% of assets. Much better than most face-to-face advisors. Of course, you don't get face-to-face, but you do get financial planning and consultations via the web. Other companies have similar services for similar fees, including Fidelity and Betterment. But I'd trust Vanguard with this one. And that's despite the fact that I'm primarily at Fidelity.

Thanks. Yes I know about Vanguard's service.

I have T Rowe Price as our financial company and they do have actually a free advisory service that I qualify for in terms of investments like Vanguard's which I have utilized (via phone) and on line and am in the process of doing an update with them. It also includes two on line tools I have used. I don't always listen to their advice because I feel they have their eyes on our cash accounts OUTSIDE of their company- they are always saying we need more stock exposure- yet when I use their Future Path tool it says my current portfolio has a 98% success rate, as does the hypothetical one with more stock exposure. (both use Monte Carlo- Future Path and The Advisory Service).

For the other kind- the paid service they offer where they manage everything for you- you need to have 5 million dollars and I have no where near that! LOL!I am not going to move my money to Vanguard at this point. I like Vanguard- don't get me wrong- and Fidelity- and I do have a couple of their funds in my Price brokerage account.

I just feel I need a totally objective professional at this point that just charges for the advice/plan and more holistic. My search continues. I do have a intro. appt with one on Friday and a phone intro. with another on Monday. The CPA firm can't do anything until after tax season, but I do hope to meet with them as well.