Retirement Planning - Lessons Learned

[two_bit_score]

Fired my long time advisor last month. Took my time to find a replacement that fit my needs. I think I interviewed about 10 before settling on the replacement advisor.

If you are going to hire an advisor, take your time, talk with several. They all aren't the same, nor do the same things.
JMO..

What were the key reasons you selected the one you did?

 

[kenmac]

What were the key reasons you selected the one you did?

The new one offered me investments in private equities, so all investments wouldn't be in the stock market.

 

[goeduck]

Find a fee based investment adviser.

MoKelly

I met with Fisher and the fee seemed outrageous. The guy calls me every other week of so to see if I will sign up. What are you paying per year?

 

[Larry Caldwell]

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

 

[kenmac]

I met with Fisher and the fee seemed outrageous. The guy calls me every other week of so to see if I will sign up. What are you paying per year?

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%

 

[California]

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

Could be.

Blackrock and I think Vanguard are the largest US firms holding Evergrande dollar-based bonds. If either sells other investments to cover their Evergrande losses, we may see a downturn.

Latest I've read is the government of China is asking local governments all over Chins to write up plans for taking over Evergrande's stalled projects within their jurisdictions and, write contingency plans for keeping the peace if their locals demonstrate at project sites.

There was some mention of applying Evergrande cash to make solvent the citizens' retirement savings accounts banked with Evergrande. (good luck with that). And possibly pay some percentage of face value to bond investors in China.

In contrast for holders of US dollar based bonds that were sold internationally, apparently the government thinks the foreigners were offered good interest for accepting risk so let them sink. One theory is that China is moving back from allowing capitalism, to Communist inspired central planning without a profit motive, and they just don't care to bail out the overseas risk-takers when there isn't enough money to cover everyone.

I was amazed to see that Evergrande accepted deposits or payments to build 1.6 million homes that aren't being built, partly because suppliers and contractors aren't being paid. The locals all across China may not want to assume responsibility for those contracts!

Overall it looks like a Ponzi scheme ran out of new investors.

 

[Larry Caldwell]

Could be.

Blackrock and I think Vanguard are the largest US firms holding Evergrande dollar-based bonds. If either sells other investments to cover their Evergrande losses, we may see a downturn.

Latest I've read is the government of China is asking local governments all over Chins to write up plans for taking over Evergrande's stalled projects within their jurisdictions and, write contingency plans for keeping the peace if their locals demonstrate at project sites.

There was some mention of applying Evergrande cash to make solvent the citizens' retirement savings accounts banked with Evergrande. (good luck with that). And possibly pay some percentage of face value to bond investors in China.

In contrast for holders of US dollar based bonds that were sold internationally, apparently the government thinks the foreigners were offered good interest for accepting risk so let them sink. One theory is that China is moving back from allowing capitalism, to Communist inspired central planning without a profit motive, and they just don't care to bail out the overseas risk-takers when there isn't enough money to cover everyone.

I was amazed to see that Evergrande accepted deposits or payments to build 1.6 million homes that aren't being built, partly because suppliers and contractors aren't being paid. The locals all across China may not want to assume responsibility for those contracts!

Overall it looks like a Ponzi scheme ran out of new investors.

It seems Xi is an old fashioned Maoist who thinks wealth should accrue to everyone equally. Plus, tanking a few billionaires hamstrings the oligarchs that are such a problem in the US.

 

[Tomtint]

Last week I cashed out my investment portfolio. My belief is that we are in the beginning of a 20% melt down. I may look to get back in at the DOW 28-29K mark. Valuations right now are simply not based in reality. How can companies be profitable when they have no merchandise to sell... I smell something foul.

 

[California]

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%

So assuming you have enough for an advisor to make a difference, that's a $10,000 starting fee.

I wonder how often you will make more than the advisor makes off your portfolio.

 

[RickB]

So assuming you have enough for an advisor to make a difference, that's a $10,000 starting fee.

I wonder how often you will make more than the advisor makes off your portfolio.

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.