NA - Retirement recon? NA

[Skyrys62]

Actually, it is not so much how much you save in the last few years before retirement than it is the extra years of draw from your portfolio and the extra health care costs prior to retirement age. Depending on your employment/health insurance situation, you could encounter exceptional costs prior to certain age breakpoints, say age 62 or 65. When you can meet your income goals for your likely expected lifespan and costs, you can pull the plug and retire. Those last few years of saving for me did not hurt at all, but didn't make all that much difference. There was some investment growth, but mainly it was health insurance costs and extra years of income draw that delayed retirement a few years for me. Plus the fact I actually enjoyed my work, although I wasn't planning on doing it forever, or even until my SS retirement age. A good financial planner can help examine these issues and make some probability projections about the likelihood of your portfolio lasting long enough. You can try to do this yourself, but you won't know everything, like structuring income to minimize future risk and tax burden, etc.

Well said, and my thought exactly.
It's my dilemma at 55. Just too long of a gap between now to SS and medicare coverage.
Of course, if I didn't want to do many of the things I want, (like fly/own, travel, etc.) I would be better positioned.
But I wouldn't retire to sit around and wish I was doing things. I do that all day at my desk lol.

 

[Rushie]

A little off topic, but how do you find a good retirement consultant?

Start somewhere, anywhere. Any consultant is better than none. Don't be paralyzed into doing nothing because you don't know who to trust. You can easily be confused about who is best or what strategy is best for this or that, especially if you listen to radio shows or you hear soundbites on the news or you have a friend telling you that you "should" do this or that. Most consultants will offer you similar standard advice. You can start there, and then you can question particulars as they come up. You don't have to do everything they suggest and you can always change if you decide your guy isn't right for you.

But no matter who you go with for your personal retirement fund, use other resources too. Employers sometimes offer seminars or personal appointments with a counselor in connection with their retirement plans. You should also have an attorney to help with estate planning, even if you are young or think you don't have enough wealth. It's also a good idea to have an accountant. Tax issues are huge when it comes to building wealth and planning for retirement. The financial adviser isn't necessarily a tax expert.

But to find your financial adviser, getting recommendations from others is probably the best way to start. At minimum he should be a Certified Financial Planner. Your CFP is not just a "retirement consultant" he is there to guide you throughout life in all your financial goals. My brother's guy put it this way: "Your goal should be to be comfortable in retirement but also plan to have some fun along the way in case you don't make it to retirement." So the guy helped my brother structure his money for growth for retirement while using a small pot over here for vacations to Europe and whatnot. The younger you start the better you can achieve this.

 

[Crashnburn]

As far as finding a CFP, I have never used them, but recommended them to a friend who's really happy with them, so check out Ric Edelmann and The Truth About Money. He has a web site, and a weekly broadcast. He has offices around the country and is very highly rated in the financial industry.

 

[X3 Skier]

Before paying a financial consultant for anything, I suggest checking sites like Vanguard, Fidelity, T Rowe Price or any of the major Mutual Fund Companies. They have tons of FREE information. Take advantage of those resources and you might find all the answers to your questions. Even if you don’t, you’ll be better prepared to discuss retirement with a fiduciary financial consultant if you still find the need.

I never had used a person, just reading FREE info. When I took advantage of one of the free dinners offered by consultant and later sat down for a discussion with him, he basically told me he had nothing to suggest. So you can do it yourself if you take the time.

Cheers

 

[Matthew]

Before paying a financial consultant for anything, I suggest checking sites like Vanguard, Fidelity, T Rowe Price or any of the major Mutual Fund Companies. They have tons of FREE information. Take advantage of those resources and you might find all the answers to your questions. Even if you don’t, you’ll be better prepared to discuss retirement with a fiduciary financial consultant if you still find the need.

I never had used a person, just reading FREE info. When I took advantage of one of the free dinners offered by consultant and later sat down for a discussion with him, he basically told me he had nothing to suggest. So you can do it yourself if you take the time.

Cheers

We had nearly the same experience. We checked out all the no-cost references and online calculators, and other tools that we already had access to through my 401(k) provider. The human we consulted pretty much agreed with the results we already knew. But he's able to give us ideas on planning strategies and advice where we just aren't that knowledgeable, it's things that the calculators can't help with. Basically, if the free resources say you are good, then you probably are. But you might not be as good as you could have been. We try, but there are a lot of things we don't follow closely enough to know all the advantages and disadvantages to make a well informed decision.

It's all is what you are looking for. It also depends on what experience you have had, too.

Stay informed, stay educated, ask questions wherever you can, and make your own decisions. If you need to find someone to help, you just need to ask around for some recommendations and follow up.

 

[NealRomeoGolf]

Before paying a financial consultant for anything, I suggest checking sites like Vanguard, Fidelity, T Rowe Price or any of the major Mutual Fund Companies. They have tons of FREE information. Take advantage of those resources and you might find all the answers to your questions. Even if you don’t, you’ll be better prepared to discuss retirement with a fiduciary financial consultant if you still find the need.

I never had used a person, just reading FREE info. When I took advantage of one of the free dinners offered by consultant and later sat down for a discussion with him, he basically told me he had nothing to suggest. So you can do it yourself if you take the time.

Cheers

My dad has 3 advisors. 2 professionals and me. I have beat the pros in returns 3 years in a row (since the beginning of his retirement). I only keep my CFP because he has access to funds i like. His advice is mostly worthless.

 

[Piperonca]

I have beat the pros in returns 3 years in a row (since the beginning of his retirement).

Very good. Any hot tips you'd like to share with a couple thousand of your closest friends, or do you freelance?

 

[NealRomeoGolf]

Very good. Any hot tips you'd like to share with a couple thousand of your closest friends, or do you freelance?

Do you have a high risk tolerance?

 

[weilke]

Retirement is not a 3 year deal. You need to beat the pros (or an index fund) over a thirty year timeframe to be good.

 

[Piperonca]

Do you have a high risk tolerance?

Probably not that high...thanks though. My money's with Uncle, if that gives you any indication. I just see these crazy yields people seem to be getting and look at the mainline alternatives and wonder how y'all do it.

 

[NealRomeoGolf]

Retirement is not a 3 year deal. You need to beat the pros (or an index fund) over a thirty year timeframe to be good.

When I am as young as I am I can't give you a 30 year baseline.

 

[denverpilot]

Start somewhere, anywhere. Any consultant is better than none. Don't be paralyzed into doing nothing because you don't know who to trust.

Also should be noted that nobody has to DO anything some retirement consultant schmuck suggests or tries to sell you.

Conversely if you can’t say NO to anyone, don’t go anywhere near any financial consultant until you learn how.

 

[denverpilot]

Before paying a financial consultant for anything, I suggest checking sites like Vanguard, Fidelity, T Rowe Price or any of the major Mutual Fund Companies. They have tons of FREE information. Take advantage of those resources and you might find all the answers to your questions. Even if you don’t, you’ll be better prepared to discuss retirement with a fiduciary financial consultant if you still find the need.

I never had used a person, just reading FREE info. When I took advantage of one of the free dinners offered by consultant and later sat down for a discussion with him, he basically told me he had nothing to suggest. So you can do it yourself if you take the time.

Cheers

Or just go to a freaking library and check out any of 10000 books on the topic of personal finance.

It won’t take long to figure out which ones were just written by some doofus who is barely making ends meet and thought a nice financial book would take in lots of suckers.

And for God’s sake don’t believe that “Rich Dad, Poor Dad” fool who’s been shown to be a fraud for decades.

 

[denverpilot]

Probably not that high...thanks though. My money's with Uncle, if that gives you any indication. I just see these crazy yields people seem to be getting and look at the mainline alternatives and wonder how y'all do it.

By not leaving cash in accounts earning less than the rate of inflation, run by Uncle.

If it’s earning less than the inflation rate, you’re losing money/purchasing power.

Just like if you’re not getting a raise every year of at least the inflation rate, your boss is paying you less each year.

 

[weilke]

When I am as young as I am I can't give you a 30 year baseline.

Right, but being good with investments over the bubble of the past three years doesn't mean a thing. My barber probably beat a more diversified/conservative investment advisor over that interval.

 

[TCABM]

My dad has 3 advisors. 2 professionals and me. I have beat the pros in returns 3 years in a row (since the beginning of his retirement). I only keep my CFP because he has access to funds i like. His advice is mostly worthless.

Beating the pros at returns is pretty easy in today’s environment. What’s harder to do is manage client assets in their best interest.

Pros can answer the questions below pretty easily.

What type of services do you provide?

What fiduciary standard are you held to?

How do you control the conflict of interest that may exist if you’re a named beneficiary or TOD on any of the accounts you’re advising on?

What is your client’s risk appetite and how are you controlling for that?

Are you considering the tax implications of high churn funds inside qualified accounts?

Do you make rollover and/direct transfer recommendations? If so, what factors do you consider when making these recommendations?

Do you manage assets to ensure withdrawals don’t exceed life expectancy?

Are you cognizant enough to know when it’s appropriate to consider donor advised funds or LTC products?

The value of a CFP isn’t the education and experience they’ve earned, it’s the fact that to hang those three letters on the end of their name, they subscribe to a rigorous fiduciary standard and, like every FINRA representative, are subject to disciplinary action both by their firm and by regulatory agencies.

Fee only Individual Advisors that hold a CFP designation can provide very good advice for a very reasonable cost while supporting self-directed investors in achieving their goals.

I’m not picking on your or any other self-directed investor. Some people want or need the services of a qualified Registered Rep or Individual Advisor, just like some people want or need someone to mow their lawn.

 

[denverpilot]

You forgot:

Why are you older than me and still working in finance and not retired yet, if you’ve done so well?



(Sometimes there’s a reasonable answer. Usually, not.)

 

[asicer]

You forgot:

Why are you older than me and still working in finance and not retired yet, if you’ve done so well?



(Sometimes there’s a reasonable answer. Usually, not.)

Same reason the government has such a hard time hiring an expert in the derivatives market.

 

[455 Bravo Uniform]

Or just go to a freaking library and check out any of 10000 books on the topic of personal finance.

It won’t take long to figure out which ones were just written by some doofus who is barely making ends meet and thought a nice financial book would take in lots of suckers.

And for God’s sake don’t believe that “Rich Dad, Poor Dad” fool who’s been shown to be a fraud for decades.

“Rich Dad, Poor Dad” was more of a conceptual book that got me started in real estate, and one of the early reads that led to our success. I wouldn’t be on POA were it not partially for that book. I could retire today if I weren’t so greedy...planes, cars, vacations.

 

[denverpilot]

“Rich Dad, Poor Dad” was more of a conceptual book that got me started in real estate, and one of the early reads that led to our success. I wouldn’t be on POA were it not partially for that book. I could retire today if I weren’t so greedy...planes, cars, vacations.

It’s fine for concepts, it’s just disappointing the guy is PT Barnum reincarnate. LOL. As long as you read it knowing it’s fiction and nobody can find any of his “mentors” in real life.

 

[Sundancer]

Did it. Sort of. . .I began a reduced schedule this week, more-or-less three days a week, with provision for "flexibility". Checking in with my financial advisor Monday.

The pay cut is substantial, but the CFP says we're good to go - just revisiting investments and goals on Monday; one mundane, but important, aspect of family is preservation of capital - I want to leave my son a decent chunk, give him some options for building on it. I am mortally certain he can use it far, far more efficiently than local, state, and federal gov't.

I find I'm already slightly less engaged, or maybe just defining myself a little less by my work - I still care, but it's not going to be a central focus for me going forward. And the physical stress releif is pretty nice - less commuting, better sleep, and other things I want to do...