Just to give an example, does anyone here move their 401k around?
Yeah I didn't think so.
There's retirement funds too for the extremely lazy person.
What do you do when you change companies? You don't roll over?
Just to give an example, does anyone here move their 401k around?
Yeah I didn't think so.
There's retirement funds too for the extremely lazy person.
Since this is a different topic I will respondWhat do you do when you change companies? You don't roll over?
Since this is a different topic I will respond
You call vanguard and say can you roll over my account to you guys.
And they do it.
You really need to believe me, it's very simple
Ok I misunderstood you earlier.
What do you do when you change companies? You don't roll over?
I agree that it's terrible for making the most money, but what if the client has the following requirements:
- Super risk averse, wants less risk than the market
- Wants a >1M life insurance policy
- Wants liquidity
- But wants a better rate of return than keeping in the bank, and beat inflation
What's the best option?
50/50 stock/bond = answer 1, 3, 4I agree that it's terrible for making the most money, but what if the client has the following requirements:
- Super risk averse, wants less risk than the market
- Wants a >1M life insurance policy
- Wants liquidity
- But wants a better rate of return than keeping in the bank, and beat inflation
What's the best option?
I have a question. If you are risk adverse wouldn't you pick a target date fund and set an auto-contribute? Wouldn't that be the most risk-adverse strategy (and easiest?) possible strategy short of hiding your money in a mattress?
Does paying someone money to pick a fund for you actually make sense? How does it reduce risk? Surely say a Vanguard target date fund is the least risky investment strategy available?
People are afraid to invest in the stock market because they think it's complicated... And it is complicated if you are buying individual stock. I was in @wazoodog position a few months ago thinking real estate investment was a heck of a lot better than the stock market because I did not know about index funds.
I accidentally came across a Youtube video about index funds. Spent a few hours reading about it, watch some more youtube videos and talked to one of my friends who invest in index funds... Now I want to sell my 2 rental properties and take the profit and put it all index fund... No headaches dealing with property management company or tenants. And the ROI over a long period of time will most likely be higher sans the headache.
Don't be too harsh on him/her, he will come around after doing his/her homework. He/she is a pharmacist after all; meaning he is intelligent.
Bmb will defend the hell outta that for sure and he isn't wrong sometimes. Most 100% rental will start generating good cash flow after around 10 yrs, and you get the whole house after 30 yrs. The difference after leverage could be about 5% higher return than stock (15%/yr) with a lot of work for 30 yrs. But, a truly lazy person like me will sell and be done with it riding 10%/yr on the cash.I am surprised this comment didn't get more replies. Somewhere out in the world BMB had a heart attack.
Am I the only one that didn't believe him?Bmb will defend the hell outta that for sure and he isn't wrong sometimes. Most 100% rental will start generating good cash flow after around 10 yrs, and you get the whole house after 30 yrs. The difference after leverage could be about 5% higher return than stock (15%/yr) with a lot of work for 30 yrs. But, a truly lazy person like me will sell and be done with it riding 10%/yr on the cash.
People are afraid to invest in the stock market because they think it's complicated... And it is complicated if you are buying individual stock. I was in @wazoodog position a few months ago thinking real estate investment was a heck of a lot better than the stock market because I did not know about index funds.
I accidentally came across a Youtube video about index funds. Spent a few hours reading about it, watch some more youtube videos and talked to one of my friends who invest in index funds... Now I want to sell my 2 rental properties and take the profit and put it all index fund... No headaches dealing with property management company or tenants. And the ROI over a long period of time will most likely be higher sans the headache.
Don't be too harsh on him/her, he will come around after doing his/her homework. He/she is a pharmacist after all; meaning he is intelligent.
1. If you’re risk averse, paying off your mortgage at least nets your whatever your interest rate is. Consider doing some mortgage payoff acceleration if you haven’t paid it off already. This will give you more cash flow which can improve liquidity somewhat.I agree that it's terrible for making the most money, but what if the client has the following requirements:
- Super risk averse, wants less risk than the market
- Wants a >1M life insurance policy
- Wants liquidity
- But wants a better rate of return than keeping in the bank, and beat inflation
What's the best option?
1. When I started my new job.
2. When I adjust out of a fund that would auto adjust (more bonds, less stock) as I aged.
Twice in 5 years
Very wise of you.My company has a service that changes allocation automatically based on risk every couple years (increases bonds, etc) depending on your target retierment year. I selected that because I was honestly on the fence about staying at my job. The fees were low, like .1% annually
Now I just manage it myself.
The cash flow ($250/month) is not big enough for one to deal with tenants. However the equity is great since the price has more than doubled in 8+ yrs. I can sell it right now and walk away with 280k+... If I put that money in a high yield dividend index fund (VYM or REIT's), the payout will be ~9k/yr while my money is growing. On the other hand, that house has no room to gain more value.Bmb will defend the hell outta that for sure and he isn't wrong sometimes. Most 100% rental will start generating good cash flow after around 10 yrs, and you get the whole house after 30 yrs. The difference after leverage could be about 5% higher return than stock (15%/yr) with a lot of work for 30 yrs. But, a truly lazy person like me will sell and be done with it riding 10%/yr on the cash.
4. I also recommend reading the book Wealth by Virtue by Chad Gordon. It has a good overall explanation of why not to fear the stock market in the long term. It is full of good advice for many life scenarios.
Wazoodog keeps saying he doesn't have the time or interest to learn how to DIY invest (it literally takes seconds to set up a target date fund) but he sure spent a lot of time writing long replies here.
Answer: yes! I have considered a fee-only fiduciary advisor for consultation for general recommendations for more diversity of funds available within my 403b and Roth. I might still consult one eventually. But I just bought the Bogleheads Three Fund Portfolio book. I will read that first and then consult a fiduciary if I feel I need further advice.Thanks for the rec. Read the description and it sounds like a worthwhile read so just ordered.
For you Bogleheads out there, I ordered John Bogle's book as well.
Maybe deep down, I have this fear that whatever I touch when it comes to finances will end up a mess. Hence, using an asset manager has felt like a financial security blanket.
At this moment, I dont feel like I can confidently DIY. And the arrangement has worked well for me the past couple years (but I'm comparing to how i did before using any help). At least, I'm willing to read more and better understand. Maybe it will eventually lead to a DIY approach or maybe not, but I do feel I could stand to learn more about it.
Let me ask this way - is there ever a time or circumstance that you can think of where the use of a CFP to manage assets makes sense?
Answer: yes! I have considered a fee-only fiduciary advisor for consultation for general recommendations for more diversity of funds available within my 403b and Roth. I might still consult one eventually. But I just bought the Bogleheads Three Fund Portfolio book. I will read that first and then consult a fiduciary if I feel I need further advice.
I talked with Personal Capital’s advisers (they are a fiduciary—I would only consider fiduciary advisers) recently and liked them. But at the end of the day, they need to consistently outperform the general market to be worth their fee. I am not confident they will as the track record for advisers in general just isn’t that strong.
Does VYM have yearly dividend yield increased like individual stocks? It's usually 3-5% increased for good companies... If not, why not look at the top 20 holdings of VYM and invest in these stocks individually? in order to enjoy that these dividend yield increased..I disagree. I hit $2.5 mil and I'm done. Toss it into VYM and lay in the cut in perpetuity. I have no interest in living the rich man lifestyle. I just want to not be a wage slave anymore.
I’m currently 0% bonds. I figure I have a long time to go before retirement? Not sure if it’s the right call (probably not) but I just pay more on my mortgage instead of owning bonds. I’m almost done paying it off.I only have like 5% in bonds. Actually debating moving a bit more in bonds now just in case of another correction going into the election.
How much liquidity do you need? I just have a $20,000 cash reserve for any emergency in a high yield savings account at all times. Which is probably excessive. But I work a job that could go *poof* at any moment so I feel like I need it.
But I'd do a term life plan. Build an emergency fund. Then invest the leftover into a simple mutual fund like VTSAX or something.
I get that you are "risk adverse" but that aversion is going to net that underwriter the majority of any gains you would potentially make from whatever index they are investing in. It just doesn't make any sense long term. Long term it's like you are paying dollars because you don't want to risk losing pennies.
I'm debating whether or not to roll over my Merrill Lynch 401K into the TSP now that I'm a federal employee.
I'm learning right alongside you.Thanks for the rec. Read the description and it sounds like a worthwhile read so just ordered.
For you Bogleheads out there, I ordered John Bogle's book as well.
For you Bogleheads out there, I ordered John Bogle's book as well.
I'm beginning to think you don't pay for anything.
Tax deferred would be a 401k or traditional IRA, where tax is deferred until withdrawal. A Roth IRA is tax free. You should try to put investments with a higher expected return in a Roth, as opposed to traditional, so that they will be tax free.Investing in a tax deferred account such as Roth IRA..
ETF vs. Index Fund? Which one is bett
Does VYM have yearly dividend yield increased like individual stocks? It's usually 3-5% increased for good companies... If not, why not look at the top 20 holdings of VYM and invest in these stocks individually? in order to enjoy that these dividend yield increased..
I'm beginning to think you don't pay for anything.
I sell opioid analgesics. I don't believe that they are effective for many of the people using them because many times they hit the parking lot
Wow. I never knew what a paragon of virtue investment managers are. I only wish that we healthcare professionals could live up to their example.
Wow. I never knew what a paragon of virtue investment managers are. I only wish that we healthcare professionals could live up to their example.
We need to become medication managers. Charge 1% fee outside of what the PBM negotiated. I mean, sure, the patient could just go to a pharmacy and get it filled themselves and not pay me 1%. But I have so much knowledge about drugs that it's worth it to pay me 1%.
You can find people like Rick ferri who doesn't rip off people like you. He put you in all index fund for hourly rate. Buy the advise as needed, not paying rip your face off fee.For those of you who have mentioned becoming a CFP or FA as a second career, I don't know how serious the comment was but if you are really considering it I think this would be helpful to know.
From the last few pages of posts, there was a niggling thought that all the rationale for DIY made sense but there was something more fundamental that, although touched on, wasn't isolated as the root of the issue. It really comes down to Active vs Passive investing.
The case some of you have presented is that passive investing is always going to be more reliably lucrative for the vast majority (or everyone), in every case. I'm certainly willing to look more into it, once recognizing what the primary hurdle is. Anyone would concede that passive investing isn't worth paying someone an AUM fee.
If you choose to actually pursue a 2nd career as a replacement source of income, you may have to be comfortable with selling active investing (AUM fee) - something you fundamentally disagree with. It's pretty hard to sell something you don't believe in.
There must be a decent number of CFPs that actually believe that what they do is truly the better option for their clients. Knowing that it's pretty hard to sell something you don't believe in, I wonder what strategy they use for their own personal finances. My guess would be a hybrid of active and passive.
*Assuming fiduciary duty*
4th post has a link to a Washington Post article.
The index card destroys that person's clearly paid argument/financial planners argument
Please stop
Are you searching articles that recommend advisors as you continue to try to convince yourself it's best to have an advisor?
I liked this guys response "The problem is, once you know enough to determine if a FP is "good", you no longer need a FP"
I was, initially when I searched - but reading the thread was enlightening.. The thread discusses the article and most advise against it...no?
By the way, I just posted a link to where I first came across Rick Ferri and didn't add an opinion so not sure why you're assuming that way. It's from BH, after all, so I think it's safe to assume most people are going to argue against the article. Rick Ferri makes some interesting points though.
I don't know who Rick Ferri is but if he argues for an advisor there's not a single thing he could say that is true
Unless he says get a consult and do it yourself.