retiring

[goeduck]

How true!!! While a youngster, I've always had my funds (both 401k and IRA's) in the most aggressive funds that we were offered. I also did the same in a personal brokerage account with small amounts contributed over the years. Some years were extremely good, others were brutal, but over the long haul it sure paid off. Fellow co-workers couldn't understand how I could sleep at night even though my funds were overall increasing much faster than the so called safer funds. Retired at age 62 it's still hard to throttle back and invest in bonds and money market funds. I've become used to the wild ride and kinda enjoy it while watching the market closely. But I have converted a major portion into different ETF funds in a few different sectors. Keeping some of my favorite individual stocks keeps it interesting while I'm being weened off of the high flyers and roll them over into more stable ETF funds. Might have to even consider a bond fund in the next few years but so far that's been like trying to get interested in golf.

Are you working with a retirement professional? Independent?

 

[RickB]

A

How true!!! While a youngster, I've always had my funds (both 401k and IRA's) in the most aggressive funds that we were offered. I also did the same in a personal brokerage account with small amounts contributed over the years. Some years were extremely good, others were brutal, but over the long haul it sure paid off. Fellow co-workers couldn't understand how I could sleep at night even though my funds were overall increasing much faster than the so called safer funds. Retired at age 62 it's still hard to throttle back and invest in bonds and money market funds. I've become used to the wild ride and kinda enjoy it while watching the market closely. But I have converted a major portion into different ETF funds in a few different sectors. Keeping some of my favorite individual stocks keeps it interesting while I'm being weened off of the high flyers and roll them over into more stable ETF funds. Might have to even consider a bond fund in the next few years but so far that's been like trying to get interested in golf.

Exactly.

 

[bird dogger]

Are you working with a retirement professional? Independent?

NO, not really. After retiring my 401k and my IRAs were all rolled over into a Schwab account where I had my small personal brokerage account for many years. Schwab does assign you an advisor to guide you (free) or you can pay for a much more hands on management style. But I've always done things myself. Plus, mutual funds have their own managers that are paid out of those funds themselves and ETFs (Exchange Traded Funds) need no real managers as they are basically a slice of many stocks that make up the type of fund or sector you choose it to be in. Unless you have a really good mutual fund manager it's hard to beat having your funds in different ETFs, whose fees are extremely low. And because of that, very few professional firms recommend them because that's not where they make their money. It's hard to justify paying both a mutual fund manager (included in the fund's fees) along with a professional management firm's fees for their hands on management when you can do as well or most times better by investing in ETF funds with almost no fees comparatively. But I say that because I have an interest in that sort of thing. Many people don't want to or can't handle the thought of managing their own funds and for them having someone actively manage their account is the better choice. I really like the Charles Schwab firm because they'll give you any amount of guidance you want. Even their free services with their assigned manager is great!! And Schwab has been the most up front and honest compared to the former firms I've had accounts with so they earned my business in retirement. I'm sure there's others too, but Schwab has been one of the first to gear itself towards the individual investor and steer them in the right financial direction. Poke around on their website and you'll find tons of all kinds of help, tutorials, info etc.

 

[RickB]

I have also been a Schwab customer for over 20 years, am consolidating various other accounts into our Schwab accounts for simplicity and streamlining. Our portfolio is extremely diverse in holdings, type of investment and sectors. We hold index funds, actively managed funds and some stocks and am beginning to buy ETFs. We recently talked extensively with a financial planner representing another brokerage but decided to stay with Schwab and continue to actively manage our own investments with limited guidance from our rep. I am extremely sensitive to expense ratios but will not reject an attractive actively managed fund with average or moderate expense.

 

[dnw64]

Well, this thread retired rather suddenly.

 

[goeduck]

I have also been a Schwab customer for over 20 years, am consolidating various other accounts into our Schwab accounts for simplicity and streamlining. Our portfolio is extremely diverse in holdings, type of investment and sectors. We hold index funds, actively managed funds and some stocks and am beginning to buy ETFs. We recently talked extensively with a financial planner representing another brokerage but decided to stay with Schwab and continue to actively manage our own investments with limited guidance from our rep. I am extremely sensitive to expense ratios but will not reject an attractive actively managed fund with average or moderate expense.

I have no issues with Schwab or any similar company but I have long worried about how objective their financial advisors are when they invest your funds in all of their own products. On my list of things to do is see an independent advisor (pay them separately) to give me objective advise. How many other have went this route?

 

[goeduck]

Well, this thread retired rather suddenly.

Some probably dropped when it strayed into politics. Lets keep it on the retirement subject. :thumbsup:

 

[RickB]

I have no issues with Schwab or any similar company but I have long worried about how objective their financial advisers are when they invest in all of their own products. On my list of things to do is see an independent advisor (pay them separately) to give me objective advise. How many other have went this route?

I completely agree. I have only sought out specific recommendations in the last few months. While I have given them full consideration and adopted some of the ideas and strategies I have yet to make any investments specifically on the rep’s no cost recommendation. The alternative would be a true fiduciary advisor and I can’t make myself pay the cost of that guidance which does not come cheap. I believe the years ahead will be very challenging in terms of returns and handing over something approaching 1% of the portfolio value every year for “unbiased” recommendations is not something I am prepared to do. I have paddled the canoe this far, I’ll just keep going.
While I do invest in some Schwab products the majority of our portfolio could be obtained through most brokerages. I have American, Janus, Vanguard and Invesco funds among others.

 

[goeduck]

I completely agree. I have only sought out specific recommendations in the last few months. While I have given them full consideration and adopted some of the ideas and strategies I have yet to make any investments specifically on the rep’s no cost recommendation. The alternative would be a true fiduciary advisor and I can’t make myself pay the cost of that guidance which does not come cheap. I believe the years ahead will be very challenging in terms of returns and handing over something approaching 1% of the portfolio value every year for “unbiased” recommendations is not something I am prepared to do. I have paddled the canoe this far, I’ll just keep going.
While I do invest in some Schwab products the majority of our portfolio could be obtained through most brokerages. I have American, Janus, Vanguard and Invesco funds among others.

Have you researched what an independent financial advisor costs? I am sure it varies by quality and I would want references.

 

[RickB]

Have you researched what an independent financial advisor costs? I am sure it varies by quality and I would want references.

Not thoroughly enough to post a number here that I would be confident in. My opinion is the 1% per year figure I mentioned above wouldn’t be far off. Paying 1/4 of that would send me into convulsions. It’s just something I can’t bring myself to sign up for.