Retirement strategy
Hi Terry, thanks so much for what you do. I’m 65 my wife is 60. I work full time in commercial outside sale, my wife doesn’t work. We own a home in the Villa Park, its paid for and realistically worth $400K. Other than utilities and taxes we owe nothing, we pay everything off each month. I have $285K in a managed Fidelity account. We lost over $40K in March but have just made it back. Fidelity is always buying and selling, might be why we made the money back? My question: Should I leave my money in the managed account that cast me .9% or move to a CFP that charges 1.5%? I have no idea how to go about retiring . Do I sell my house? My Taxes are just under $10K a year, less expensive than renting but I can’t use my money. I spoke to a planner that a friend recommended. Her fees are a bit more, she tends to be more conservative in managing style, not trading all the time. Any thoughts on a direction? Do any of your books cover this topic? Thank you, Mike & Michelle PS, I would like to retire in the next year or so, maybe work part time but I have to get away from the stress.
Terry Says
OK, well first, I’m guessing that your “managed account at Fidelity” is a private money manager who uses Fidelity as a brokerage firm, and probably gets a commission on each transaction. That makes it look all wonderful using “fidelity” as a brokerage account base — but could cover a multitude of costs. It’s wrong to say “Fidelity is always buying and selling. The “manager” is giving directions to buy and sell. Wonder why? What’s in it for him/her???
First thing, contact that “manager” and ask him to see his reports under the new SEC Reg BI — He must show you his disciplinary history. And he/she must disclose ALL costs — not only management fee, but brokerage costs (even though they are hidden in the purchase price of funds or securities. ALL costs — not jut ‘upfront” costs — but ongoing mutual fund management fees that are taken out each year, in addition to his/her 0.95 management fee.
You are at the perfect place to do some serious financial planning. fortunately you have no debt, and that’s a great start. You need to think about retirement income, the costs of healthcare — even with Medicare, you’ll spend a fortune on supplemental insurance over the years, and factor in how much more you could get by waiting even past your Full Retirement Age (nearly 67) to collect your Social Security.
Lots of people call themselves “financial planners.” Even under the new Reg BI (Best Interests) it is going to be difficult to know whom to trust The ONLY I know you can be sure to get a FIDUCIARY financial planner, who fully discloses all fees and costs, AND promises in writing to put your interests first, is to go to Wealthramp.com and go through the matching process. Founder Pam Krueger does the hard work of introducing you to carefully vetted FIDUCIARY financial planners. Try it — it’s free!
