[BuyckCabin]

I'm currently 50. Planning to retire in 7 years. Been reading and learning and researching a lot and despite my plans, there is one thing that still nags at me. I have Ameriprise managing my funds but the fees gnaw at me mentally, and financially.

I'm seriously considering shifting all my funds to my Fidelity accounts and managing them mostly by myself. That I think I feel comfortable with. It's the tax management that I'm not so comfortable with or at least don't fully understand how to optimize.

I currently have custodial accounts for my boys with Fidelity with FSKAX and FTIHX as the investments.

I am thinking of following the Bogglehead method, however I am close to retiring, not 30 years away. I have been maxing out my 401K and maximizing my employer match for years. Maxing out my ROTH and my wife's ROTH for years. Plus putting any extra in a Private Brokerage account (this year) with Fidelity with FSKAX and FTIHX as the investments.

I max out my 401k every year. My employer match is around $6,000-$6500 this year.

I max out her ROTH and my ROTH each year. Then I put as much as I can away in a Personal Brokerage Account and whatnot.

Hence why I say "I am" planning to retire in 7 years at 57. She'll still be working. We are each "expected" to contribute 1/2 the monthly expenses to the household (that's always been our arrangement). The rest of each person's money is there's to do with as they please. I've been carrying the health insurance burden for the entirety of our relationship. So I can either be on her plan or go on MNSure which isn't so bad.

I plan to take SS at 62. I don't care about the reduction; I have a life to live. My estimated SS check at 62 will be around $2900+ based on corrected calculations including me making minimum of 100K for the next 7 years.

We will be selling the FL house and moving back to MN where taxes will be much cheaper, and cost of living will be cheaper, and quality of life will be drastically better. The proceeds from the sale of the house here will pay cash for the MN house.

So, that brings us back to the original question of transferring all our assets out of Ameriprise to Fidelity. Or leave them as is and simply put all future savings into Fidelity. Or trial the Fidelity thing for a year and see how it goes before moving Ameriprise funds.

Is managing all that by yourself feasible?

[Bogie Shooter]

You forgot to mention what you had for breakfast...........

[BuyckCabin]

You got a problem details that are pertinent to the problem?

[Bogie Shooter]

Originally Posted by BuyckCabin

You got a problem details that are pertinent to the problem?

No problem, just the first time on TOTV that a poster reveled their total net worth, (In detail)

[BuyckCabin]

Originally Posted by Bogie Shooter

No problem, just the first time on TOTV that a poster reveled their total net worth, (In detail)

Gotcha. I never understood the secrecy with money.
1. I’m anonymous.
2. Nobody cares about my money.
3. The only way someone can truly help is to have details.

[Stu from NYC]

I would never post personal info on a public site.

[Smalley]

You are smart to consider lowering your investment management fees as much as possible. The fees over time become significant in a bad way. Vanguard pioneered the low cost index fund approach which we also follow. And congratulations on being such a consistent investor. Good luck.

[kingofbeer]

Originally Posted by BuyckCabin

I'm currently 50. Planning to retire in 7 years. Been reading and learning and researching a lot and despite my plans, there is one thing that still nags at me. I have Ameriprise managing my funds but the fees gnaw at me mentally, and financially.

I'm seriously considering shifting all my funds to my Fidelity accounts and managing them mostly by myself. That I think I feel comfortable with. It's the tax management that I'm not so comfortable with or at least don't fully understand how to optimize.

I currently have custodial accounts for my boys with Fidelity with FSKAX and FTIHX as the investments.

I am thinking of following the Bogglehead method, however I am close to retiring, not 30 years away. I have been maxing out my 401K and maximizing my employer match for years. Maxing out my ROTH and my wife's ROTH for years. Plus putting any extra in a Private Brokerage account (this year) with Fidelity with FSKAX and FTIHX as the investments.

Here is the real math. These are the Ameriprise numbers. My wife and I have $130,776 in Personal Brokerage Accounts (mine is $57,611). We have $276,748 in Trad IRA ($235,226 is mine). We have $46,627 in ROTH ($30,978 is mine). Grand total of around $454,000 today.

On top of that I have $62,000 in the current 401k. She has about $10,000 in her 401k. We make around $200,000 a year (give or take depending on my OT). We owe 72,000 on the house (will be paid off in 7 years).

I max out my 401k to the tune of $32,500 this year. My employer match is around $6,000-$6500 this year. She puts in about $13,000 a year into hers. We need the tax breaks.

I max out her ROTH and my ROTH each year. Then I put as much as I can away in a Personal Brokerage Account and whatnot (about $10,000 this year). Our Emergency Fund is fully funded ($30,000).

Hence why I say "I am" planning to retire in 7 years at 57. She'll still be working. We are each "expected" to contribute 1/2 the monthly expenses to the household (that's always been our arrangement). The rest of each person's money is there's to do with as they please. I've been carrying the health insurance burden for the entirety of our relationship. So I can either be on her plan or go on MNSure which isn't so bad.

I plan to take SS at 62. I don't care about the reduction; I have a life to live. My estimated SS check at 62 will be around $2900+ based on corrected calculations including me making minimum of 100K for the next 7 years.

We will be selling the FL house and moving back to MN where taxes will be much cheaper, and cost of living will be cheaper, and quality of life will be drastically better. The proceeds from the sale of the house here will pay cash for the MN house.

So, that brings us back to the original question of transferring all our assets out of Ameriprise to Fidelity. Or leave them as is and simply put all future savings into Fidelity. Or trial the Fidelity thing for a year and see how it goes before moving Ameriprise funds.

Is managing all that by yourself feasible?

Leave Ameriprise due to higher fees. Fidelity is a good choice. Ideally you would have well over 1 million in savings plus 401k. I don't see enough money in your 401k of $276,748 for retirement. I would suggest to keep on working until at least 62 and contribute to your 401k and roth to build up your retirement savings.

[BuyckCabin]

Originally Posted by kingofbeer

Leave Ameriprise due to higher fees. Fidelity is a good choice. Ideally you would have well over 1 million in savings plus 401k. I don't see enough money in your 401k of $276,748 for retirement. I would suggest to keep on working until at least 62 and contribute to your 401k and roth to build up your retirement savings.

Thank you for the response.

I know my finances well. And I know I don’t need to live like most people do here. I’ll never understand needing 7,000 or 10,000 a month. $4000/month is enough to support both my wife and I fully. We are going back to the basics. Simple life. 1.0 to 1.25 million plus to bridge until SS will be way more than enough.

I don’t care about preserving wealth and passing on an inheritance. I didn’t kill myself working to make my kid’s retirements easier.

I also know I have one life to live and I hate working.

I know I’m going back to growing my veggies and splitting my wood and shooting my own meat sources in the woods. I know I’ll be more satisfied and healthier. I know that doesn’t require fancy cars and fancy cruises and eating out at restaurants and big houses with high insurance rates and high tax rates.

A modest 7% yearly average growth on the money I currently have plus the 50-60K per year I’m saving every year for the next 7 years will easily reach that number. If the market tanks and my plans have to shift, I’ll deal with that scenario then. But the plan is, punch out in 2467 days for the last time.

[ltcdfancher]

Originally Posted by BuyckCabin

Thank you for the response.

I know my finances well. And I know I don’t need to live like most people do here. I’ll never understand needing 7,000 or 10,000 a month. $4000/month is enough to support both my wife and I fully. We are going back to the basics. Simple life. 1.0 to 1.25 million plus to bridge until SS will be way more than enough.

I don’t care about preserving wealth and passing on an inheritance. I didn’t kill myself working to make my kid’s retirements easier.

I also know I have one life to live and I hate working.

I know I’m going back to growing my veggies and splitting my wood and shooting my own meat sources in the woods. I know I’ll be more satisfied and healthier. I know that doesn’t require fancy cars and fancy cruises and eating out at restaurants and big houses with high insurance rates and high tax rates.

A modest 7% yearly average growth on the money I currently have plus the 50-60K per year I’m saving every year for the next 7 years will easily reach that number. If the market tanks and my plans have to shift, I’ll deal with that scenario then. But the plan is, punch out in 2467 days for the last time.

I have an advisor, but they and I are a team; we decide together how the plan unfolds. The MOST important point of the relationship is that my spouse knows and trusts this advisor. My recommendation would be that you find a fee-only advisor that you both like and trust. Once one or the other of us calls the Baldwin Brothers 800-number, the entire strategy must change and having even occasional contact with an advisor will help you both.

[Babubhat]

Go to fidelity. I closed my vanguard accounts. Fidelity has low fee funds now. Branch in lake sumpter landing. Only downside is money market rate is terrible. Buy SGOV instead. It mimics a money market fund.

They have a cash management account equivalent to interest checking. Free atm withdrawal at any machine.

Forced by employer to use Ameriprise. An insult to your wallet. Fees are a disgrace.

[jimbo2012]

Try putting all that info into AI, you'll be amazed with the results.

Yes go to Fidelity

[paulcallaway]

I am a long-time Vanguarder and member of the boglehead.org forum. I would suggest posting your complete message on that forum, where I believe that you will get some very professional, well-reasoned advice at no cost.

[NedFlanders]

Fidelity is a good choice. There are lots of us who do the same thing, including early retirees like me, and it works well. A bonus with Fidelity is that they have investor centers where you can walk in and ask questions, which is something that other low fee brokerages like Vanguard lack.

If you are planning to retire at 57, managing healthcare costs will be one of your biggest challenges. Start reading up on the ACA rules, especially on the premium subsidies that scale with your income. Keeping your taxable income / MAGI low while on the ACA is the right approach, so study up on how withdrawals from the various accounts impact MAGI and thus your ACA costs.

You mentioned Bogleheads...if you don't already know, they have a good forum with people that are really good with finances. Recommend you consider posting there as well to get feedback on your financial plan.

[RoboVil]

Ameriprise convinced my wife to buy an insurance product just as she was about to retire tying up the assets for 10 years. Had to take it out and lose some of the principal and invest it (best decision ever). So, I don't trust Ameriprise at all. The company should have stopped the agent from doing this.