U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-12-2015, 07:25 AM
 
2,859 posts, read 1,011,377 times
Reputation: 3289

Advertisements

I'm five years from retiring, right now I have 401k and 403 investments thru work. Was interested in how you all manage your investments now that you are retired? Any advice on steps like financial planners etc would be appreciated
Reply With Quote Quick reply to this message

 
Old 04-12-2015, 07:41 AM
 
Location: On the road
5,967 posts, read 2,903,874 times
Reputation: 11417
We roll our own, have kept it simple with simple three-way portfolio (total us stock, total intl stock, total bond) of low cost index funds. At end of year will sell as needed to cover next year's expenses then rebalance.

Also will be implementing Roth conversion ladder to take advantage of 0% and 10% tax brackets.

There is so much info out available online, if you commit the time to do your homework and know where to go to ask for help managing your own money isn't an unreasonable task.

Good luck!
Reply With Quote Quick reply to this message
 
Old 04-12-2015, 08:37 AM
 
Location: Houston/Brenham
4,121 posts, read 4,705,040 times
Reputation: 7584
I manage my own. I would invest 100% in mutual funds, and avoid any individual stocks or annuities. Vanguard can handle all (or most of all) of what you need. Stay low cost, avoid fees, shoot for the average. Trying to break the average results in 85% of people underperforming the indexes. (yes, 85%!)

Those funds can include stock funds, bond funds, even money market. Whatever your risk level is, plus your individual needs. Vanguard will even help you determine those factors.

It sounds like I work for Vanguard (nope), but I simply like them because they are 100% oriented for the customer. There is a reason they are the #1 investment company in the US, with over $3 Trillion dollars in funds.

Check out bogleheads forum for more advice.
Reply With Quote Quick reply to this message
 
Old 04-12-2015, 08:55 AM
 
168 posts, read 130,055 times
Reputation: 844
My husband was diagnosed with cancer and died 3 years 6 months ago. I was 59 years and 10 months old. We had always lived paycheck to paycheck except we had a 401 k, life insurances through work, and a future pension. In order for me to keep the majority of his pension he had to resign from work after he was established in short term disability (an insurance through work we paid for) He then took a lump sum distribution os his retirement straight into a third party held IRA. Before going good on disability we were able to receive an 80 percent payout on his life insurance policies at work. Because of these measures I was able to pay off house and debts and had 1 million to last me all my life.

I went with a professional and I am so glad I did! My after tax return combined with SS (which I took at age 60) and a small military pension leaves me not worrying about money. I interviewed 3 people. One Knights of Columbus rep wanted me in annuities. One wanted to me to pay 150 an hour to advise me....portfolio management was extra. I went with an RBC advisor in low risk diversity. So far my principle has continued to grow while.providing me with an income....I do no think I could ha e managed on my own.
Reply With Quote Quick reply to this message
 
Old 04-12-2015, 08:56 AM
 
2,043 posts, read 1,951,967 times
Reputation: 3459
If your 401k is in expensive actively managed funds then rollover to Schwab and put everything into their Schwab branded stock ETFs which have lower expense ratios than Vanguard plus no-cost online trades so you can sell at no commission. I don't work for Schwab but like them and recommend them to everyone I know.
Reply With Quote Quick reply to this message
 
Old 04-12-2015, 06:20 PM
 
Location: Florida
4,375 posts, read 3,710,800 times
Reputation: 4116
Need to know your investing skills. Assume none. Then meet with a fee only planner.
Before that check educational programs at work.
Go to discount brokers sites and start reading about retirement planning.
Reply With Quote Quick reply to this message
 
Old 04-12-2015, 08:48 PM
 
29,794 posts, read 34,889,516 times
Reputation: 11715
Do it ourselves with list of reading of Bogleheads both books and forums along with other like minded writers. Keeping it simple with index funds and active fundscwith long term track records and stability along with a good Fidelity newsletter. Transitioning now to the next stage of retirement income.
Reply With Quote Quick reply to this message
 
Old 04-12-2015, 09:34 PM
 
22 posts, read 17,682 times
Reputation: 19
We file our own tax returns (individual and business) and handle our own investments. When I was fresh out of college many years ago, I used Merrill Lynch Brokerage. I quickly learned that the investment advisers had to make a living off their clients and they almost never put clients' interest above their own (which is understandable and expected). So, I learned very early on that I was the best guardian of my own money and investment.
Reply With Quote Quick reply to this message
 
Old 04-12-2015, 10:51 PM
 
8,871 posts, read 5,145,585 times
Reputation: 10152
Quote:
Originally Posted by lieqiang View Post
We roll our own, have kept it simple with simple three-way portfolio (total us stock, total intl stock, total bond) of low cost index funds. At end of year will sell as needed to cover next year's expenses then rebalance.

Also will be implementing Roth conversion ladder to take advantage of 0% and 10% tax brackets.

There is so much info out available online, if you commit the time to do your homework and know where to go to ask for help managing your own money isn't an unreasonable task.

Good luck!

Love your plan. I also use the three fund portfolio.
Reply With Quote Quick reply to this message
 
Old 04-12-2015, 11:33 PM
 
6,307 posts, read 4,752,208 times
Reputation: 12919
I spent some time trying to find good and affordable financial advice for my medium sized portfolio. I felt confident with the advice I received and I also received some advice that was dishonest, incorrect or inappropriate. I have spent quite a bit of time trying to understand how to handle my investments. The more I learn, the more it seems that a basic, simplistic approach works best. You have already heard some of the basics. Here are some points that I think are valuable:

Don't try to be an expert. Don't try to play the markets. Don't pretend you are an analyst and can wisely pick individual stocks.

Buy mutual funds with low management fees. Set a stock:bond allocation that relates to your risk tolerance and personal financial situation. That should be somewhere in the range of 40-70% stocks. Then STICK with that allocation. If the stock market drops, don't panic and sell. Instead maintain your allocation; i.e., buy stock funds. If the market goes up, do not get greedy. Maintain your allocation by taking some profits and selling some of the stock funds. Diversify. Not just stocks and bonds but some medium/small cap stocks in addition to the large cap stocks. Consider additional means of diversification such as real estate investment funds. Keep some cash on hand such as bank accounts, money market or short term bond funds.

These few simple ideas should help you make good financial choices. If you look for financial advice knowing some basics will help you to decide if the advice makes sense.

Finally don't forget that a good financial plan also means looking at costs especially big costs such as housing. I hate budgets but it is essential to know at least roughly how much you can spend routinely. You need to understand safe withdrawal rates and how those might change as the economy changes.

You asked about investments. I also mentioned costs. In addition you need to think about social security. Consider delaying starting social security. Delaying social security is one of the best steps you can take. That will give you a return of 8% plus cost of living on that amount.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top