[M2inOR]

We have both managed and unmanaged accounts with Fidelity. There are taxable, IRAs, and ROTH accounts under management, as well as 2 IRA accounts that I trade. I've been a trader since 1980, and have learned a lot.

The managed accounts were given a goal of 7-10% return a year, and the management fee is slightly less than 1% per year.

I've been doing my own taxes for 40 years, and have utilized TurboTax and tax publications that help identify deductions I'm able to take.

Managed accounts aren't for everyone.

I survived 3 big declines in the market, the latest being what the pandemic caused. Fortunately recovered easily from each of those declines, as I did not need to sell.

Also, my Fidelity advisor asked me if I knew about ROTH conversions. At the time, I did not. I researched during the pandemic, hired another advisor who specialized in ROTH conversion plans (Craig Wear) who confirmed my cousins with a detailed plan. Very happy with the outcome.

Yes, was hit with IRMAA, but my wife had a medical premium retirement account to pay those very high premiums.

We also deferred our social security benefits until we turned 70, so that our ROTH conversions were in "no income" years and we lived off of savings. Yes, we had high taxes during those conversion years.

We're now early 70s, approaching RMD times, and living off of SS benefits, and income from our investments.

I'm glad we both headed the advice we got in the late '70s, to save as much as we could during our working years, live within our means, and to learn as much as we could about investing in the stock market.

Now we relax, travel, and enjoy our sunset years.

[retiredguy123]

Originally Posted by Chi-Burbs-toTV2026

When I retire next year I plan to do the same, keep my 401k investments with Vanguard and manage it myself. Currently a mix of 60% stock / 40% bonds which I will tweak at some point. Going to take 4-5%

When you retire, I would suggest that you do a direct transfer from the 401K to a traditional IRA within Vanguard. It will cost you nothing, you will pay no annual fees, and you will have access to a larger variety of investment products.

[Caymus]

Originally Posted by retiredguy123

When you retire, I would suggest that you do a direct transfer from the 401K to a traditional IRA within Vanguard. It will cost you nothing, you will pay no annual fees, and you will have access to a larger variety of investment products.

Just keep in mind that a 401k has more legal protections than an IRA.

[OrangeBlossomBaby]

I don't pay a dime to a financial advisor. Our 401k is modest, we have life insurance policies that have cash value and don't require a fee to cash in if we need it. My stock certificate is also modest, it'll cost me around $100 to sell all my stocks and get maybe around $6000 direct deposited into my savings account.

We don't have much in the way of investments, so we don't need a financial advisor. Life is pretty simple when you're not wealthy.

[retiredguy123]

Originally Posted by Caymus

Just keep in mind that a 401k has more legal protections than an IRA.

That may be true, but it wouldn't stop me from converting. You never know how a prior employer will change the 401K. Also:

"Most tax-deferred accounts such as 401(k) plans, traditional and Roth IRAs, pension plans, and 403(b) accounts are protected from creditors under Florida law."

[manaboutown]

Thursday I had my first scheduled conversation with a potential FA to whom I had sent portfolio statements. Without getting my prior approval he informed me he had another FA on the call. Strike one!

Then he told me he was compensated based on AUM. When I mentioned that, for example, it literally takes no more time or effort to manage a $2(X)M portfolio than a $1(X)M portfolio ( just buy 200 shares of XYZ instead of 100) so why should he get twice as much? He had no good answer. I asked why he could not bill as lawyers do, by the hour. Silence. Strike two.

During the call the other FA three times chimed in I should expect a 5% return. I did not bother to ask if that is 5% before or after their fee. With T-bills returning 4+% (4.99% on the 20 year treasury) with no fee who needs a FA getting 5%? Many good companies and ETFs paying pretty good dividends are out there, too, and qualified dividends are taxed at a relatively low rate. I am not swinging for the seats out in left field, but I do expect to average 7-8% on a conservative portfolio over the next ten years, with both up and down years occurring during that period. Strike three. He is OUT!

This week I have a scheduled conference with another FA. Let's see what he says.

[fdpaq0580]

How much is my financial advisor costing me? Not nearly what he's making for me.
Thanks for asking.

[M2inOR]

Originally Posted by fdpaq0580

How much is my financial advisor costing me? Not nearly what he's making for me.
Thanks for asking.

As it should be. I'm very happy with the results from our manager.