Retirement Planning - Lessons Learned

goeduck · Feb 18, 2021

I had my first session with Vanguard and I am scheduled for another one in 3 weeks. I liked the guy but he would not be my long term advisor. On my pension I asked if he knew if I would roll that into buying a rental house for some diversity. He said a retirement plan could hold most any asset (gold, property, etc.) and I could look into that locally. My idea was to avoid paying taxes on the pension distribution. Has anyone done this?

I still need to settle on Fidelity or T.Rowe Price for the other half of my retirement accounts.

JethroB · Feb 18, 2021

goeduck said:
I had my first session with Vanguard and I am scheduled for another one in 3 weeks. I liked the guy but he would not be my long term advisor. On my pension I asked if he knew if I would roll that into buying a rental house for some diversity. He said a retirement plan could hold most any asset (gold, property, etc.) and I could look into that locally. My idea was to avoid paying taxes on the pension distribution. Has anyone done this?

I still need to settle on Fidelity or T.Rowe Price for the other half of my retirement accounts.

Glad you reported back. I had my routine quarterly call with Vanguard yesterday. I've had the same advisor for 5 years, since day one. We go over recent results and then he makes recommendations that I must approve before changes are made. Tax events are always a topic. Then we shoot the breeze for a few minutes. Very pleased.

dieselscout80 · Feb 18, 2021

What kind of fees are these accounts charging per $1000 invested in them?

JethroB · Feb 18, 2021

dieselscout80 said:
What kind of fees are these accounts charging per $1000 invested in them?

Vanguard advisory/management fee is 0.30% or $3.00 per $1000 per year.

dieselscout80 · Feb 18, 2021

JethroB said:
Vanguard advisory/management fee is 0.30% or $3.00 per $1000 per year.

Is that the total cost including moves within funds (e.g., like from stocks to bonds ect.)?

If it is the total that is really good.

JethroB · Feb 18, 2021

Yes. The advisor does the moving though. Vanguard.com.

goeduck · Feb 19, 2021

JethroB said:
Yes. The advisor does the moving though. Vanguard.com.

So the fee includes moving funds?

JethroB · Feb 19, 2021

goeduck said:
So the fee includes moving funds?

Moving is probably not the best term to use, exchange is better and what VG calls it. That will occur when it's time to rebalance the mix, say to get back to a chosen 70/30 equities/bond ratio or domestic to international mix. Part of the service and 0.30 % fee.

Edit: I'm only referring to transactions within VG. Best to go to their website or call for the best information.
Keep in mind that VG doesn't offer a full line of services that many others do. That is one way they keep their fees and expenses low.

goeduck · Mar 31, 2021

I am settling in on retiring this summer and I am thinking of investing about 20 to 25% of my liquid assets in Real Estate under a Self Directed IRA to give me some diversification outside of Vanguard and Fidelity. I asked about this earlier and I now know a little more (but not much more). Has anyone done a Self Directed IRA, even if it did not include Real Estate?

ultrarunner · Mar 31, 2021

One of my friends bought and sold and operated rental houses in his IRA...

It was quite profitable due to appreciation and even with property manager he was still involved.

At age 70 he started selling deferring the gains as they were in the IRA.

He sold because he did not want to be a landlord in retirement... but the 9 years he was in could not have been better... 2010-2019.

Single family and town home in greater Sacramento California area.