Investing, Stock Market and Retirement Planning Thread

[MrKennethTKangaroo]

Look at Mikey shorting the market like he’s some guy from Melvin capital or whatever that hedge fund from game stop was called.

[mikey]

I was on the right side of history there, sir.

[dodint]

Well, well, well...look who comes crawling back, market...

[NTP66]

dodint, what the **** are you trying to do

STOP

[dodint]

[dodint]

I posted yesterday thinking there was going to be a downward correction to end the week. But...nope. If this is one of those deals where it creeps up to my break even point then plummets again I'm going to jump out a window.

[mikey]

*honk*

[mikey]

Finally I got kicked over to Schwab from TD/Think or Swim. Early returns are that much prefer the ToS app...

[King Colby]

For those of you who use wealth management firms, what are your management fees?

[mac5155]

For those of you who use wealth management firms, what are your management fees?

I too am curious about this. My buddy's dad who retired last year said his guy is doing really well for him and told me to reach out. What do they do for you, and how do they make money? Will they require minimum balances?

[Dickie Dunn]

Depends on the wealth management company. Some advisors are salaried and get supplemented with fees and commissions, others are primarily commission based. Regardless, you're typically charged a flat fee based upon your investment total. They'll model an investment portfolio based upon your age and goals, putting your money into funds that also charge fees. Depending on the type of investments being made you might get added benefits like managed tax loss selling, but that's typically getting into the world of Separately Managed Account for high net worth people. If you're in a situation where you are looking to establish and manage trusts and estates, I'd recommend financial advisors and wealth management firms until I'm blue in the face. If you're just looking for someone to manage your path to retirement, it's probably not worth the added expense of paying someone to fund pick for you as there options aren't going to be much different than yours (if at all) and you're not personally tempted by the swarmy sales guy who takes you to Oakmont once a year. We had severely underperforming accounts survive for YEARS because the FA loved our sales guy. 10ish years out from retirement my opinion on all that changes. Your investment structure should evolve, you need to start being more prepared for expenses and planning once your income dries up, and dealing with required minimum distributions can be a pain in the ass, etc.

[NTP66]

Or just invest in a target date fund that aligns with your desired AA.

[King Colby]

That's part of it but they do a lot more than that. Target funds and several other ETFs that they bounce in and out of based on market triggers. Mine charges 1.25% of my portfolio value each year, withdrawn quarterly. Wasn't sure how that aligns to industry standards and Google ain't helping

[dodint]

If this is one of those deals where it creeps up to my break even point then plummets again I'm going to jump out a window.

We've plateaued.

[Dickie Dunn]

That's part of it but they do a lot more than that. Target funds and several other ETFs that they bounce in and out of based on market triggers. Mine charges 1.25% of my portfolio value each year, withdrawn quarterly. Wasn't sure how that aligns to industry standards and Google ain't helping

The funds charging you on top of it? 125 bps seems high, but I don't have a great frame of reference. We offered SMAs at a max of 100 bps, scaling all the way down to 65 for our smaller strategies, so our fee was on top of the advisor's fee. Does your advisor provide metrics showing the value added by active management? It's shocking how many active managers suck and don't add value.

[MrKennethTKangaroo]

That's part of it but they do a lot more than that. Target funds and several other ETFs that they bounce in and out of based on market triggers. Mine charges 1.25% of my portfolio value each year, withdrawn quarterly. Wasn't sure how that aligns to industry standards and Google ain't helping

A firm I’m familiar with charges 1.0% for balances less than $1 million then I think it drops down to .75% over a million.

[skullman80]

So I need to decide what to do with my old 401k. New employer is set up with fidelity, they offer a 4% match, and I'm going to toss like 8% at it myself maybe more. That is all straight forward to set up.

I have a fairly large amount in my other 401K, does it make more sense to just leave it where its at (its a prudential account that got transferred to Empower), roll it into my new 401k at Fidelity, or roll it into a fidelity IRA?

[NTP66]

Compounding interest, my man. If you have good funds in the new plan, roll it over.

[skullman80]

Compounding interest, my man. If you have good funds in the new plan, roll it over.

Yeah I figured as much, I just wasn't sure if there was any benefit to rolling it into an IRA compared to another 401k that's all. I've never paid a whole lot of attention to this stuff. I use target funds, increase my contribution every year...set it and forget it haha.

[NTP66]

FWIW, I was referring to a 401k > 401k rollover, not an IRA rollover. That's a whole different topic, and probably not what you want to do. I think that's technically a Roth conversion, but am not certain.

[skullman80]

I knew that's what you meant.

My old 401k is still investing, it's just not getting money added to it now that I'm not with that employer anymore. The target funds between Prudential and Fidelity seem pretty identical, but I guess it makes more sense to just roll it all into one and have it one place.

[Beveridge]

I never advise leaving 401k money from an old employer in the account. Move it to your new one or an IRA.

When my wife changed jobs, I rolled her non-Roth into an IRA and the Roth into a Roth IRA.

[robbiestoupe]

I will keep line of there are different/better investing options. Otherwise, roll it over

[NTP66]

My credit score on Experian is currently sitting at 843...

Got me beat by one point.

[robbiestoupe]

I had something like 843 without trying. Keep fighting the good fight, fella