Retirement Planning - Lessons Learned

[grsthegreat]

I’m not cashing out of nothing. Ridden drops before, always come out ahead in a few years. Don’t want the capital gains hit either.

 

[Torvy]

Bailing on the market causes the very thing you fear. Buy stocks in well managed solid companies. Diversify your portfolio and relax.

 

[ultrarunner]

If you go to cash in 401k there should be no implications...

Still remember the work 401k that paid 3% guaranteed on cash and the spiel it would always do so as it is written into the plan...

Well when interest dropped there was a flood into the 3% fund and the only way to end it was to dissolve the 401k offering which was through a bank...

Funny how the field managers always get reshuffled when market tanks...

 

[Doughknob]

The next few weeks could be a rocky ride in the markets.

Every next few weeks could be......

 

[Doughknob]

Exactly why I paddle my own canoe. Not because I can gain what they charge but the odds of them making me more than they charge are not good enough for me to buy in.

Yep. It is indeed all about the odds. Advisors have no better crystal ball than me

Same thing on life insurance. I never had it. Odds are on my side i will live to the average age. Putting the premiums in investments has made me MUCH more than an insurance policy.

 

[goeduck]

The next few weeks could be a rocky ride in the markets.

When the market drops I do not panic. Maybe reposition or buy. Often I just wait it out.

 

[RickB]

I’m not cashing out of nothing. Ridden drops before, always come out ahead in a few years. Don’t want the capital gains hit either.

I looked at our total portfolio yesterday with an eye towards rebalancing. I'm good at this point; not buying or selling anything.

 

[JethroB]

Don't know what all advisors charge, but the ones I spoke with charges a percentage based on your account. Less than one million..1%. over one million.. 1/2%

Vanguard charges 0.30% of portfolio value. Minimum is $50,000 I believe. $300 annually on $100k for example. They basically put you in four funds based on your risk tolerance and goals, plus a money market cash reserve fund. When you need cash they will sell in a manner to minimize capital gains. Their fund expense ratios are generally less than others which offsets some of the management fee.

Total US stock
Total US bonds
International stock
International Bonds

 

[California]

Vanguard charges 0.30% of portfolio value. Minimum is $50,000 I believe. $300 annually on $100k for example. They basically put you in four funds based on your risk tolerance and goals, plus a money market cash reserve fund. When you need cash they will sell in a manner to minimize capital gains. Their fund expense ratios are generally less than others which offsets some of the management fee.

Total US stock
Total US bonds
International stock
International Bonds

I admire Vanguard. They seem to have the customer's interest in mind more than any competitor.

 

[MossRoad]

Yep. It is indeed all about the odds. Advisors have no better crystal ball than me

Same thing on life insurance. I never had it. Odds are on my side i will live to the average age. Putting the premiums in investments has made me MUCH more than an insurance policy.

... unless you die. That's why they call it insurance.

We have term life insurance. If I croak, it replaces my missing salary for my wife for X years. If she croaks, it replaces her missing salary for me for X years. (if we both croak, the kids get it) It's there to give the surviving spouse X years to make some decisions, tide them over, and get things settled for either adjusting to one income or until they meet someone else, etc. If you have children that are not yet self-supporting, it helps the surviving spouse immensely.

We also have accidental death policies, so accident kills either one of us and we get double the payment, to help a bit more with the shock factor VS health related death.

By the time we retire, we will no longer need term life insurance, and will stop. If we never needed it, we're fine with that. It gave us both peace of mind, just like home owner's insurance.