Retirement Targets

[LeaningCy]

Slightly off topic: My wife and I are interested in hiring a Fee-Only CFP for retirement planning.

For those of you who went this route, at what age did you start seeing them? Were there any particular life events that led you to take the leap?

Background: We are under 40, off to a strong start in retirement savings, and feel competent in asset allocation. I would like to bring in a second set of eyes in the next few years as early retirement becomes more of a possibility.

 

[BCClone]

I don’t think it’s that you only need to earn 4%. Don’t you have to earn 4% plus the rate of inflation (so probably a little over 7% on average)? That’s how I understood it…

Yeah, you only take out 4 and leave 2-3 in for inflation growth.

 

[yowza]

21% in my 401(k); 17.2% in my Traditional IRA (rolled over 401(k) from previous employer); 32.7% in my Roth.

I really need to give up my addiction to small/mid-cap biotech stocks

Oh, but some have been rolling recently with all the M&A speculation.

 

[frackincygy]

Slightly off topic: My wife and I are interested in hiring a Fee-Only CFP for retirement planning.

For those of you who went this route, at what age did you start seeing them? Were there any particular life events that led you to take the leap?

Background: We are under 40, off to a strong start in retirement savings, and feel competent in asset allocation. I would like to bring in a second set of eyes in the next few years as early retirement becomes more of a possibility.

I'm 32 and my wife and I reached out to one locally (N.Iowa) who came highly recommended. We met with him twice and when we asked "where to we sign to become clients" he told us bluntly - don't hire me, keep doing what you're doing (maxing individual Roths and contributing >12% to Roth 401(k)) and buy market tracking (low fee) ETFs. Once you're closer to your early 40's come back and talk to me.

So that's what we're going to do.

 

[CycloneSpinning]

Slightly off topic: My wife and I are interested in hiring a Fee-Only CFP for retirement planning.

For those of you who went this route, at what age did you start seeing them? Were there any particular life events that led you to take the leap?

Background: We are under 40, off to a strong start in retirement savings, and feel competent in asset allocation. I would like to bring in a second set of eyes in the next few years as early retirement becomes more of a possibility.

I’ve thought about this- pretty much in the same boat. I don’t think I’ll look to hire a professional advisor until we’re closer to $2 million in investable assets, but I have been thinking more about chatting with a CPA. That’s more of what I’m interested in right now - how to optimize the tax strategy without letting the tax tail wag the dog. Any financial advisor I’ve talked to seems to always point me to a CPA for the questions I have…so I guess I assume again that at this point they don’t have much to offer me.

 

[frackincygy]

Oh, but some have been rolling recently with all the M&A speculation.

Yeah - unfortunately, they got the piss beat out of them the years before (2021, 2022, 1H2023) as interest rates rose and politicians politic'd. I'm also not big on 'swing trading', so I watched literal thousands in paper gains evaporate back to my original cost basis (and in some cases lower).

But you are right, between the weight loss drug craze (Ozempic, Wegovy, etc.) and the hard bottom bounce since Thanksgiving it hasn't been too terrible of late.

Saving grace was selling OTM covered calls against my positions and averaging down on the companies I really like in the next couple years (TGTX, IOVA, AVDL, IBRX come to mind). Was also a good time to add to the "growing dogs" I like going forward (ex. AMGN, AXSM)

 

[qwerty]

March generally regarded as the first time the Fed will decrease rates. I believe assumption is a quarter point.

I am going to counter that and guess the Fed will stand pat in March. I believe they will lower in later quarters but still wait and see for March.

 

[CascadeClone]

Slightly off topic: My wife and I are interested in hiring a Fee-Only CFP for retirement planning.

If anyone has a recc for someone in the CR area I would be interested. I have seen a bunch of different places (work consultant, bank, others) who want 1% annually, but that feels like a ripoff to me.

 

[4theCYcle]

Conservative Roth - ~9%
"Risky" Roth with stocks - ~160%
401K - ~27%

 

[GoCy]

Slightly off topic: My wife and I are interested in hiring a Fee-Only CFP for retirement planning.

For those of you who went this route, at what age did you start seeing them? Were there any particular life events that led you to take the leap?

Background: We are under 40, off to a strong start in retirement savings, and feel competent in asset allocation. I would like to bring in a second set of eyes in the next few years as early retirement becomes more of a possibility.

Like you, I am comfortable with handling our own investments and asset allocations, but wanted to have a second set of eyes on our plan. If you are OK without a face-to-face meeting (i.e. online Zoom meeting), we used Rick Ferri, and were happy with what we got. He is a fee-only advisor that caters to do-it-yourselfers. He is a proponent of low-cost index funds (has written several books on the subject and hosts the Bogleheads on Investing podcast).

Rick Ferri Investment Solutions

He said that our asset allocation was already pretty good, but he showed us tax optimization strategies that we had never considered and provided us with a bullet-point list of items for us to execute ourselves. It's been several years since we had him look everything over, and I am planning to set something up again soon for another review.

 

[NWICY]

401k - 30.7%
Roth - 47.25%
Traditional - 19.93%

Guess which account I'm more conservative in?

Younger investors. Hit the damn gas!

(Not investment advice and if you're taking financial advice on here you better have your goddam house paid for)

It's CF all the houses are paid for.

 

[dmclone]

Trad IRA 18%
Roth IRA 9.5%
401k (Wife) 29%
401k Roth/Trad 15.8%

 

[Cyowa 14]

Any recommendations for the self employed? I'm 31 and have just been consistently buying low cost market tracking ETFs every month for the past 5 years since I don't have 401k matching from a company or anything

 

[CycloneSpinning]

If anyone has a recc for someone in the CR area I would be interested. I have seen a bunch of different places (work consultant, bank, others) who want 1% annually, but that feels like a ripoff to me.

That’s my other issue with advisors I’ve seen. 1% or more (not to mention the fees in the investments themselves). They’re not going to beat you by 1% over the long haul if you’re just in a broad-based market fund. I assume most of their recommendations would be similar to a target date fund, which is usually .1 or .15% from what I’ve seen. At least up until you have substantial assets. Then maybe things change?

 

[yowza]

Yeah - unfortunately, they got the piss beat out of them the years before (2021, 2022, 1H2023) as interest rates rose and politicians politic'd. I'm also not big on 'swing trading', so I watched literal thousands in paper gains evaporate back to my original cost basis (and in some cases lower).

But you are right, between the weight loss drug craze (Ozempic, Wegovy, etc.) and the hard bottom bounce since Thanksgiving it hasn't been too terrible of late.

Saving grace was selling OTM covered calls against my positions and averaging down on the companies I really like in the next couple years (TGTX, IOVA, AVDL, IBRX come to mind). Was also a good time to add to the "growing dogs" I like going forward (ex. AMGN, AXSM)

I've been bit by smaller ones in the past so tend to stay away or place smaller bets. One have been in the last couple months is NKTX. Up big on a smaller bet with that one. Have to watch these things daily for fear even in one or two days they can evaporate.

 

[yowza]

That’s my other issue with advisors I’ve seen. 1% or more (not to mention the fees I. The investments themselves). They’re not going to beat you by 1% over the long haul if you’re just in a broad-based market fund. I assume most of their recommendations would be similar to a target date fund, which is usually .1 or .15% from what I’ve seen. At least up until you have substantial assets. Then maybe things change?

I have had people ask me why I don't get into investment advisory stuff as I am in accounting/finance and they know I follow the markets closely. I am like no way, I stress the hell out about my own stuff about having it in the "right" investments. It'd be 100 times worse if I was advising others where to put money.

 

[frackincygy]

I've been bit by smaller ones in the past so tend to stay away or place smaller bets. One have been in the last couple months is NKTX. Up big on a smaller bet with that one. Have to watch these things daily for fear even in one or two days they can evaporate.

You aren't a kidding. It's either got to be a daily watch or a lock-it-away and forget about it. Otherwise you're going to need a LOT of Tums. Can't lie though - I like the high when I catch a 3-10 bagger

 

[yowza]

I'm 32 and my wife and I reached out to one locally (N.Iowa) who came highly recommended. We met with him twice and when we asked "where to we sign to become clients" he told us bluntly - don't hire me, keep doing what you're doing (maxing individual Roths and contributing >12% to Roth 401(k)) and buy market tracking (low fee) ETFs. Once you're closer to your early 40's come back and talk to me.

So that's what we're going to do.

Honest dude.

 

[Dopey]

Like you, I am comfortable with handling our own investments and asset allocations, but wanted to have a second set of eyes on our plan. If you are OK without a face-to-face meeting (i.e. online Zoom meeting), we used Rick Ferri, and were happy with what we got. He is a fee-only advisor that caters to do-it-yourselfers. He is a proponent of low-cost index funds (has written several books on the subject and hosts the Bogleheads on Investing podcast).

Rick Ferri Investment Solutions

He said that our asset allocation was already pretty good, but he showed us tax optimization strategies that we had never considered and provided us with a bullet-point list of items for us to execute ourselves. It's been several years since we had him look everything over, and I am planning to set something up again soon for another review.

How much was this?

 

[CascadeClone]

That’s my other issue with advisors I’ve seen. 1% or more (not to mention the fees I. The investments themselves). They’re not going to beat you by 1% over the long haul if you’re just in a broad-based market fund. I assume most of their recommendations would be similar to a target date fund, which is usually .1 or .15% from what I’ve seen. At least up until you have substantial assets. Then maybe things change?

I co-own a small biz, so both our 401k advisor and our bank have had their "wealth management" folks talk to me. They both were basically selling their magic stock portfolio pick-a-mix for the 1% in annual fees. It was like the 1970s called and boy does your broker have a great stock for you!

To say I was disappointed is a huge understatement. I was looking for tax strategies, bond ladders, clever things to manage my money. Plus I am over 50 now and need to start thinking about the back end instead of just save save save.