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So, I’ve accumulated a pretty good nest egg and will have a pension and of course SS in retirement. In two years, at 62, I’m thinking of retiring. While I did a pretty good job accumulating I’m not very versed in what to do with it after retirement. I was thinking of paying someone but 1% seems like a lot. What are some good resources to help me educate myself to feel confident in self-directing my investments?
Nail down what you can do for health insurance and the costs related vs staying employed to get it.
Maybe negotiating some sort of part time thing too going into the future as well.
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I’m not very versed in what to do with it after retirement.
Probably not a whole lot different than what you've been doing -- but sure get a check up.
Start with the CPA (who knows your numbers) and who you have reason to trust.
Discuss what's good/bad for taxes, what grows and also hits the income you need (beyond the others).
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...to feel confident in self-directing my investments?
KISS applies to this as well.
Don't volunteer for anything you don't understand.
Location: Was Midvalley Oregon; Now Eastside Seattle area
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My sister uses Fidelity for ~1.0% AUM. She & DH have a UC retirement pension, group (UC) LTCi plans and small private pension from big company. Plus IRAs and stock. She gets a wealth discount.
We use a FA fudicary, pay ~1.5-2% AUM in annuities and managed accounts. We only have a single, small pension. We have rentals, self managed. Smaller IRAs in trading accounts. We have private purchase LTCi. Our retirement wealth is less so we pay more but we have rentals that I calculate differently.
Overall, she got her initial plans from their employers. We had to find and purchase.
Ymmv
Last edited by leastprime; 10-15-2019 at 05:53 PM..
Yeah we've checked in with a FA who is fiduciary and would charge .9% of AUM. He seems to be on the up and up and has tailored a plan for our particular situation. In some ways I like the hands off approach but I'm unfortunately a do-it-yourselfer in most things. I'd need to do some wood shedding though to get up to speed and even with that would probably never feel comfortable.
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,072 posts, read 7,508,849 times
Reputation: 9798
Shop till you drop.
Talking with my FA yesterday, he said that fund companies and advisors have and are developing models to mimic annuities for their high net worth clients. All have some form of active management
YMMV, YMmv, ymmv.
My sis has nearly all her discretionary retirement with Fido.
We have about a third of discretionary assets with fudiciary.
Different stories for different folks.
Ymmv
It sounds like OP has a pretty good handle on things (Pension, SS, investments). The real issue of paying someone else to manage your nest egg is NOT what you pay, but, how much you make. If you are making a net of 8-10-percent annually AFTER paying management fees, do you really care how much the management company made? (I've pretty steadily made 8-10-percent net after fees for the past 11-years).
Some will argue that they can do a better job of managing their own investments ... and they are probably right. But, how much time, effort and emotional capital is it worth for someone who is not a stock analyst and would rather play golf?
It sounds like OP has a pretty good handle on things (Pension, SS, investments). The real issue of paying someone else to manage your nest egg is NOT what you pay, but, how much you make. If you are making a net of 8-10-percent annually AFTER paying management fees, do you really care how much the management company made? (I've pretty steadily made 8-10-percent net after fees for the past 11-years).
Some will argue that they can do a better job of managing their own investments ... and they are probably right. But, how much time, effort and emotional capital is it worth for someone who is not a stock analyst and would rather play golf?
This is sort of how I've been thinking about it. The fees are kind of crazy especially since they recur every year for what seems to be less work. BUT as long as there are good returns who cares. The FA gets his and I get mine without fretting over whether I've done things right or not.
I've pretty steadily made 8-10-percent net after fees for the past 11-years).
11 years would be just after the end of the last big bear market, so this average doesn't include any major downturns. Eventually, I have no idea when, but eventually there will be another big bear market. The 8-10% average will probably be a lot lower when the next big bear market hits, and the average includes a full market cycle instead of only the climb up.
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