October 14, 2019 at 2:55 PM #69708
Good day all,
I’m 56 and eyeballing retirement – or at least the ability to not work should we choose not to do so. My wife is 54. I figure we are about 3 years away from that point, where we would achieve a high enough confidence level to call it feasible.
Right now I have about 43% of our investments in a rollover IRA with Morgan Stanley. That is managed by someone I know and trust. He has been our adviser for maybe 15 years. Another 44% of investments is in a 401k and I manage that. I’m about ready to pull the trigger and pull our funds from Morgan Stanley and drop them into a discount brokerage account and manage it all on my own – and avoid the 1% annual fee. I’ve valued my investment manager’s advice all these years when I couldn’t focus on more than our family and shoveling the money into retirement accounts. Now that we are empty nesters, I have more time to focus on this and I really do enjoy finance. At this point, I don’t think it’s worth the annual 1% which results in several thousands of dollars in fees. Time to let that money stay with us instead of flying out the door.
I look forward to managing it all during these next several years and figure that is a more gentle training ground before we get to the next much bigger step – drawing down the accounts! I suspect it is much easier to shovel it in than it is to take it out!
Rollover IRA: 42%
Retail Cash/CDs: 11%
Deferred Investments are about: 70% equity, 20% bonds, 10% cash
RussOctober 15, 2019 at 3:22 PM #69807
I also transitioned away from managed to self-managed when I discovered David and MFRU. My biggest suggestion is to avoid concentrated bets. I have sometimes become excited while learning about a previously unknown to me asset class. I suggest you learn about the various choices, but move into them when they become attractive and in amounts that are prudent. Additionally, I encourage you to create plan (I use a spreadsheet with income, expenses, account balances for each year until age 100). It was hard to create but easy to update and check progress.October 15, 2019 at 11:46 PM #69820
I was just thinking about sending David an email about the value I find in MFRU. I also manage our accounts and am close to retirement. A friend recently inherited money and opted to use an advisor and take the 1% hit. It is an expensive service given our current risk/reward environment.
I might not do anything differently if I didn’t subscribe to MFRU, but it provides me with a reality check and some confidence that I am not being too cautious or am exposed to too much risk. As David says every week “and how to live without worrying about it”.
RobertOctober 16, 2019 at 9:55 AM #69903
Thanks. Since I’m already managing our 401k funds, I’ll probably just set up a brokerage account that more or less mimics what we have in our 401k. I’ve been managing that just fine and I want to make things easy.
I’ve been thinking about doing this for years, but felt like I needed a place to go should I have a question. I was considering looking for a “for fee only” adviser that I could go to if I ever had the need. However I think with this service, and my trusted friends who are talented DIY investors, I think I’ll not have that need. Looking forward to plugging in to this group.October 16, 2019 at 6:18 PM #69925
Congratulations on becoming a “do it yourself’r!” No one cares more about your money than you!
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