Re: At 1:03:10, advisors outperforming benchmarks. In my opinion, it's not really possible to make more than the market without taking additional risk with one or two notable exceptions. But even fairly novice investors can take additional risk fairly easily. Is reasonable to incentivize an advisor to take more by taking more risk with your money? Because that's about the only reliable way to outperform over the long-term. Personally I'm opposed to paying any advisor during the accumulation phase. Most people will never get enough value from it to justify the cost. Sure, an advisor can hold your hand to keep you from making stupid mistakes jumping in and out of the market, but in my experience those same people are the ones that will fire the advisor for underperforming the S&P 500 ... so there's just no winning there. FWIW, I love what you do Andy!
If I downsize my home once I have begun medicare, will I be kicked off or permanently have an IRMAA because the appreciation bumps me over the income limit or will it just be for that year I sell? I am single and with three beds and baths I feel like my retirememt will be permantly as the maintenance guy.
IRMAA is reassessed every year, based on your reported MAGI from your tax return two year priors. Therefore, even if you have a large bump in your income for one year, IRMAA charges won’t be forever; they’d only be for one year, all else equal
Re: At 1:03:10, advisors outperforming benchmarks. In my opinion, it's not really possible to make more than the market without taking additional risk with one or two notable exceptions. But even fairly novice investors can take additional risk fairly easily. Is reasonable to incentivize an advisor to take more by taking more risk with your money? Because that's about the only reliable way to outperform over the long-term.
Personally I'm opposed to paying any advisor during the accumulation phase. Most people will never get enough value from it to justify the cost. Sure, an advisor can hold your hand to keep you from making stupid mistakes jumping in and out of the market, but in my experience those same people are the ones that will fire the advisor for underperforming the S&P 500 ... so there's just no winning there.
FWIW, I love what you do Andy!
Thank you for the good advise Sir.
🤘🏻
If I downsize my home once I have begun medicare, will I be kicked off or permanently have an IRMAA because the appreciation bumps me over the income limit or will it just be for that year I sell? I am single and with three beds and baths I feel like my retirememt will be permantly as the maintenance guy.
IRMAA is reassessed every year, based on your reported MAGI from your tax return two year priors. Therefore, even if you have a large bump in your income for one year, IRMAA charges won’t be forever; they’d only be for one year, all else equal
Pregnant pause
Ah ha...thanks!
Thanks, Andy Panko. When value is added, it is money worth spending; if value is not added, then compounding subtraction occurs.
Indeed!