Retirement Targets
- Thread starter yowza
- Start date
Do it myself.
Unless I become a billionaire, the financial advisor ain't worth the cost to me. Plus I enjoy doing them
Feel bad for anyone who was close to departing but now has to extend for a bit.
You look at market stuff daily or just check it every now and then? I try to catch at least a half hour of CNBC early in the morning to get the gist of the direction of the day.
We have used a financial planner for over 30 years. Find a fiduciary and trust the professional. Do you prescribe your own medications? Non-casual that is.
The wife and I retired when I turned 59 1/2 and she was 56 1/2. But we had two full pensions at that time and then SS kicked in at 62 and Medicare at 65.
I get this service for free from my employer but I don't ask for their investment advice. What I do ask is about things like tax strategies for early retirement. They also did things like tell me I didn't need life insurance, did need an umbrella, etc.
Awesome. No negative years with those either, other than when inflation eats into it some like this year with gas and food.
Amount necessary for retirement differs for everyone. Lifestyle, Residence, Travel, and Health all have a direct impact. What is more than enough for me and my wife is inadequate for someone else. I reached the point where I had accumulated “enough”. I have income producing property and other sources adequate for my lifestyle. When I reach full SS age I will have that as well. My SS and rental property income will adjust with inflation. Should be good unless we both end up in nursing home for a decade or more. That will eat up assets.
I'm partial to the 3-bucket strategy, with different allocations for each time horizon represented by each bucket.
1st bucket has anticipated expenses for 3 to 4 years in more liquid / cash-equivalent conservative assets, 2nd is more mid-term investments with more risk/reward potential in the 5-8yr time horizon, and 3rd bucket is for more aggressive investments with money I won't need to touch for 8-10 years or more.
Then as you progress along retirement, you make adjustments to / transfers between those buckets as conditions change (expenses, market returns, etc.).
It’s not rocket science or brain surgery. Do you hire all your lawn work? All house repairs? Interior decorator to pick out your furniture and have a fashion designer buy your clothes? I know people who hire all that stuff done. I have read up on stuff and educated myself in investments.
I have a little ways to go, but my current thinking is to keep ~5 years of expenses in something safe (cash, short term bonds, maybe utilities?) and then just let the rest be your normal allocation, even if that is really stock heavy at 70-80-90%. The 5 years of "safe" lets you continue to ride stuff out. Then annually just withdraw another year worth from the "unsafe" to the "safe".
I DIY but I understand why some want to hire it out. If you just don't want to, don't trust yourself to, then it's fine to pay someone. You are just trading your money for someone else's time and your peace of mind.
Now, don't get ripped off or overcharged of course...
I was planning on around 1.3 Billion, didn't really have a back up plan.
Agree. Was just responding to the post that was trying to make it seem stupid to do it yourself. Have to know your comfort level and knowledge
We have a living trust since my wife has had Parkinson's for 20 years and if something happens to me there is nothing she has to deal with. It just simplifies things for her. We did some changes this year since our circumstances have changed a lot compared to five years ago when we first did it. I had to drag her along to get it done, but it is a good thing for her. We will evaluate every two to three years depending upon how much things change.
Also as far as investing yourself, once you hit a certain threshold, the big investment companies now off a free advisor. I have received offers from Schwab and Vanguard. I haven't used them so far, but may in the future.
Also as far as investing yourself, once you hit a certain threshold, the big investment companies now off a free advisor. I have received offers from Schwab and Vanguard. I haven't used them so far, but may in the future.
