The more complex something is thought to be, the easier it is for someone to pay another person to do it for them! If you sit back and really think about it and take the time to learn your situation, it's really not that complex. I had a FP and he had me in 15 different funds in my IRA ... even after I told him that was more than I needed. Needless to say, I moved on from him and spent time to educate myself and do what's best for me and my family. I have a saying, "No one cares more about my money than me!"
Good point, yet you are significantly influenced by your own biases, overconfidence, and potential lack of expertise. "Care" is an emotional issue that is difficult to quantify.
I guess I’m a DIY investor. I’ve learned through a couple of bad investments a few years ago that I don’t have enough insight to successfully choose individual stocks. Since the S&P 500 does so well compared to most fund managers, why not go with a very low fee S&P 500 mutual fund (I chose Vanguard). Now that I’m a little over 2 years from retiring, I’m getting a couple of years worth of liquid assets, and since the interest rates have (finally) risen enough to make bonds interesting, I set up a one year treasury ladder at 5.4%. By the way, Schwab has a nice wizard that guides you through creating a ladder, as I can see it would be a wee bit more complicated if you had to research each of the four investments separately. So, S&P for my long term money and (until interest rate heads back down), treasuries for shorter term investments. One reason I like the S&P 500 index is that if it’s doing poorly, most stock will be down. Also, these are the companies that get an unfair legal advantage by having plenty of lobbyists on their payroll. If you can’t beat ‘em, join ‘em!
The most difficult bucket to fill is the cash bucket, but it is the bucket that gives you flexibility. We have 5 years of cash, so our Obamacare costs are dirt cheap. We are currently pulling 60% of our monthly income from the cash bucket with the rest from dividends. This keeps our "income" below certain levels so we can mazimize our ACA subsidies. We are now in the process of determining when to take SS, how to handle Roth conversions, and how to refill our cash bucket if we have to pull it down because markets tank. We have real estate that we can sell if it makes sense. Diversify so you can have multiple income streams. Hire a good financial advisor that you can work with whenever it's convenient for YOU. We fired Morgan Stanley last year after 25 years because they had lost sight of my needs.
Tried to figure what watch that is during the video, but no luck :) Love the jubilee bracelet and dive watches in general. Please share the make/model if you'd like!
Absolutely the financial industry has done a disservice to the average person. Jack Bogle is the most honest man I know. I too have switched to Vanguard and I sleep well. We all owe him a big thank you.
DIY travel, Travel planner agent, Tour guide- GREAT analogy for helping us consider what we want/ need!!!!
The more complex something is thought to be, the easier it is for someone to pay another person to do it for them! If you sit back and really think about it and take the time to learn your situation, it's really not that complex. I had a FP and he had me in 15 different funds in my IRA ... even after I told him that was more than I needed. Needless to say, I moved on from him and spent time to educate myself and do what's best for me and my family. I have a saying, "No one cares more about my money than me!"
Good point, yet you are significantly influenced by your own biases, overconfidence, and potential lack of expertise. "Care" is an emotional issue that is difficult to quantify.
I read about indexing in the WSJ in the late 1980s. It was a revelation. It simplified my investment decisions significantly and made me wealthy.
What is the WSJ?
@@barbiec4312 Wall Street Journal
@@barbiec4312 Wall Street Journal
The more experts there are, the more complex the industry becomes, everywhere
I guess I’m a DIY investor. I’ve learned through a couple of bad investments a few years ago that I don’t have enough insight to successfully choose individual stocks. Since the S&P 500 does so well compared to most fund managers, why not go with a very low fee S&P 500 mutual fund (I chose Vanguard). Now that I’m a little over 2 years from retiring, I’m getting a couple of years worth of liquid assets, and since the interest rates have (finally) risen enough to make bonds interesting, I set up a one year treasury ladder at 5.4%.
By the way, Schwab has a nice wizard that guides you through creating a ladder, as I can see it would be a wee bit more complicated if you had to research each of the four investments separately. So, S&P for my long term money and (until interest rate heads back down), treasuries for shorter term investments.
One reason I like the S&P 500 index is that if it’s doing poorly, most stock will be down. Also, these are the companies that get an unfair legal advantage by having plenty of lobbyists on their payroll. If you can’t beat ‘em, join ‘em!
I like your travel agent analogy. So true!
The most difficult bucket to fill is the cash bucket, but it is the bucket that gives you flexibility.
We have 5 years of cash, so our Obamacare costs are dirt cheap. We are currently pulling 60% of our monthly income from the cash bucket with the rest from dividends. This keeps our "income" below certain levels so we can mazimize our ACA subsidies.
We are now in the process of determining when to take SS, how to handle Roth conversions, and how to refill our cash bucket if we have to pull it down because markets tank. We have real estate that we can sell if it makes sense.
Diversify so you can have multiple income streams. Hire a good financial advisor that you can work with whenever it's convenient for YOU. We fired Morgan Stanley last year after 25 years because they had lost sight of my needs.
This was awesome. Thank you.
You are so welcome!
Tried to figure what watch that is during the video, but no luck :) Love the jubilee bracelet and dive watches in general. Please share the make/model if you'd like!
So they can fee you to death!
Absolutely the financial industry has done a disservice to the average person. Jack Bogle is the most honest man I know. I too have switched to Vanguard and I sleep well. We all owe him a big thank you.