Retirement Planning - Lessons Learned

[goeduck]

My 401k is with Fidelity through my past and present employers. 30 something years. The only time I ever met with them in person was 3 years ago when my past employer gave me a lump sum buyout of my pension and I had to sign the papers and make sure I didn't take possession of the funds. We set up a rollover IRA through Fidelity and had the funds deposited in that. They offered us a look-see at our financial situation. I gave them our info and went back a week later with my wife and we went over it with them. Guy had a nice folder for us, went over it all thoroughly, and then said we did everything right and keep up the good work. No changes.

Wife and I left and had a good chuckle.

We do meet with a person from our credit union once a year to go over our investments and get her opinion on how we're doing. It's a free service. She's also very happy with our choices. She has pointed out a few stinkers to us a few times in between annual meetings, so I know she's keeping an eye on the funds that she knows her people are invested in. Great service and free.

Local Credit union. Interesting idea. :reading: :reading: :reading:

 

[Solitary Man]

Do you owner finance?

I offered once, but it didn't go anywhere. I use a realtor so I'm out of the selling part and meeting prospective buyers. It's worth the fee for me.

 

[goeduck]

Well I made an appointment to have a web meeting with a Vanguard Senior Advisor. Fidelity pushes you to a local advisor. I have not checked T.Rowe Price yet.

I will settle on either 1 or 2 of them. Ameriprise is out.

I spent some time listening to Fidelitys and T.Rowe Prices elevator music today, then hung up. On line they seem to drive you straight to accepting terms and signing up. At least with Vanguard I got a live person who set me up with an advisor web appointment.

 

[r porter]

see post 16.

i went out at 51 and am glad i did. if you wait too long ..............

 

[forgeblast]

We've got accounts with Vanguard and my 401K with my employer, and I've been speaking with Fisher and they want me to roll both these accounts over to them - I am 65 and plan to retire in 3 years as I enjoy what I do. Vanguard has returned on average 7.5% over the last 5 years, moderate/conservative with 55/45 stocks/mutual funds, and the 401K is similar 55/45 split returning on average 9-10% - last year was 17% which was the exception.

Bottom line Fisher is claiming with their actively managed approach they can return 10% after fees (1.2%)whereas Vanguard fees are around .4% and the 401K .8%. My wife wants to put everything in Vanguard so we are just investigating options.

What's your history and experience with Fisher? Do they live up to their claims?

Fisher Investments - Bogleheads.org
Fisher Investments--again - Bogleheads.org
Fisher Investments - Help a family member leave - Bogleheads.org

From what I have read, they take too much of a percentage. Go with vanguard, keep your money instead of paying fisher.

 

[polarred21]

Pretty good simple reading here.

How to Address Retirees’ No. 1 Concern | Kiplinger

 

[Fuddy1952]

I planned for my retirement when I was in my 20s. Fidelity and Vanguard both great, my opinion. Funny true story. After WWII my grandfather next door hadn't been in practice as a physician long when he got a call from Edward C. Johnson II. He said they were passing through on way to Florida and wanted to talk to Grandad about a new mutual fund he was starting, Puritan fund.
Grandad liked him and opened an account.
When I bought my place 1980 loan was 14.9%! I paid it off in 3 years allowing me to then invest mortgage money.
1) plan in your 20's for retirement
2) get debt free!
3) diversify and Vanguard's "Stay the course" is great advice
4) live BELOW your means. If you make $70K a year, live like it's $50K.
My 72 year old brother never saved and he's in one heck of a mess. Never and I mean never get in credit card debt.
A Hyundai Accent will get you where you need to go same as a Mercedes. A 1500 sq.ft. house is easier to clean, heat, cool, maintain.

 

[JethroB]

I planned for my retirement when I was in my 20s. Fidelity and Vanguard both great, my opinion. Funny true story. After WWII my grandfather next door hadn't been in practice as a physician long when he got a call from Edward C. Johnson II. He said they were passing through on way to Florida and wanted to talk to Grandad about a new mutual fund he was starting, Puritan fund.
Grandad liked him and opened an account.
When I bought my place 1980 loan was 14.9%! I paid it off in 3 years allowing me to then invest mortgage money.
1) plan in your 20's for retirement
2) get debt free!
3) diversify and Vanguard's "Stay the course" is great advice
4) live BELOW your means. If you make $70K a year, live like it's $50K.
My 72 year old brother never saved and he's in one heck of a mess. Never and I mean never get in credit card debt.
A Hyundai Accent will get you where you need to go same as a Mercedes. A 1500 sq.ft. house is easier to clean, heat, cool, maintain.

Fuddy, you just wrote my story, right down to my 72 year old brother that has been living off family charity for 20 years. ullinghair:ullinghair:
The family joke is he lives in Texas and we pay him to stay there.

 

[goeduck]

1) plan in your 20's for retirement
2) get debt free!
3) diversify and Vanguard's "Stay the course" is great advice
4) live BELOW your means. If you make $70K a year, live like it's $50K.

Yep, pretty much what I have always followed. I would add the following:

5) Recognize the difference between WANT and NEED and discipline yourself to what you NEED and not what you WANT.

 

[ultrarunner]

Those with nothing sometimes do ok with little worry...

Just showing other side of the coin.

Here in the SF Bay Area it is possible to live middle class life with assistance... as in new car in driveway (Yaris), grad night at Disney, a family vacation in Hawaii... all while living in a 800k single family home paying 400 month, discounted utilities and $10 high speed internet, no cost cell and lab top, transportation, no cost family medical, visiting nurse, food deliveries... etc...

It does give pause for thought which was brought home by a 50 year old grandmother paid to take care of her grandkids and receives tax refunds... without being employed in decades.

 

[goeduck]

I had my first session with Vanguard and I am scheduled for another one in 3 weeks. I liked the guy but he would not be my long term advisor. On my pension I asked if he knew if I would roll that into buying a rental house for some diversity. He said a retirement plan could hold most any asset (gold, property, etc.) and I could look into that locally. My idea was to avoid paying taxes on the pension distribution. Has anyone done this?

I still need to settle on Fidelity or T.Rowe Price for the other half of my retirement accounts.

 

[JethroB]

I had my first session with Vanguard and I am scheduled for another one in 3 weeks. I liked the guy but he would not be my long term advisor. On my pension I asked if he knew if I would roll that into buying a rental house for some diversity. He said a retirement plan could hold most any asset (gold, property, etc.) and I could look into that locally. My idea was to avoid paying taxes on the pension distribution. Has anyone done this?

I still need to settle on Fidelity or T.Rowe Price for the other half of my retirement accounts.

Glad you reported back. I had my routine quarterly call with Vanguard yesterday. I've had the same advisor for 5 years, since day one. We go over recent results and then he makes recommendations that I must approve before changes are made. Tax events are always a topic. Then we shoot the breeze for a few minutes. Very pleased.

 

[dieselscout80]

What kind of fees are these accounts charging per $1000 invested in them?

 

[JethroB]

What kind of fees are these accounts charging per $1000 invested in them?

Vanguard advisory/management fee is 0.30% or $3.00 per $1000 per year.

 

[dieselscout80]

Vanguard advisory/management fee is 0.30% or $3.00 per $1000 per year.

Is that the total cost including moves within funds (e.g., like from stocks to bonds ect.)?

If it is the total that is really good.

 

[JethroB]

Yes. The advisor does the moving though. Vanguard.com.

 

[goeduck]

Yes. The advisor does the moving though. Vanguard.com.

So the fee includes moving funds?

 

[JethroB]

So the fee includes moving funds?

Moving is probably not the best term to use, exchange is better and what VG calls it. That will occur when it's time to rebalance the mix, say to get back to a chosen 70/30 equities/bond ratio or domestic to international mix. Part of the service and 0.30 % fee.

Edit: I'm only referring to transactions within VG. Best to go to their website or call for the best information.
Keep in mind that VG doesn't offer a full line of services that many others do. That is one way they keep their fees and expenses low.

 

[goeduck]

I am settling in on retiring this summer and I am thinking of investing about 20 to 25% of my liquid assets in Real Estate under a Self Directed IRA to give me some diversification outside of Vanguard and Fidelity. I asked about this earlier and I now know a little more (but not much more). Has anyone done a Self Directed IRA, even if it did not include Real Estate?

 

[ultrarunner]

One of my friends bought and sold and operated rental houses in his IRA...

It was quite profitable due to appreciation and even with property manager he was still involved.

At age 70 he started selling deferring the gains as they were in the IRA.

He sold because he did not want to be a landlord in retirement... but the 9 years he was in could not have been better... 2010-2019.

Single family and town home in greater Sacramento California area.