BillsFanNC Posted May 16, 2012 Share Posted May 16, 2012 Are you a Boglehead? I do indeed adhere to the boglehead philosophy of investing. Link to comment Share on other sites More sharing options...
Chef Jim Posted May 16, 2012 Share Posted May 16, 2012 The thread is locked because it's just a sticky post to be used as a guide of the format they like to have posters use so they get enough information to give some useful feedback to their questions. Here is a sample thread: Potfolio review There are all levels of expertise over there, but here are a few regular posters, some of whom I have received personal feedback from in the past. My link My link My link My link So are you getting free advice from an anonomous person whose credentials you know nothing about? Financial advice that could potentially affect you for the test of your life? If that's what going on over there that's just some scary ****. Link to comment Share on other sites More sharing options...
BillsFanNC Posted May 16, 2012 Share Posted May 16, 2012 So are you getting free advice from an anonomous person whose credentials you know nothing about? Financial advice that could potentially affect you for the test of your life? If that's what going on over there that's just some scary ****. Well if you are a regular user of that forum then you are usually of the mind that you can invest for yourself, those guys are just there as a sounding board. The ones I listed of course have impeccable credentials and there are many more like them. That is not to say that investing yourself without an advisor is for everyone. Personally I'm 100% confident in doing it myself and I don't lose a wink of sleep over it. Link to comment Share on other sites More sharing options...
Chef Jim Posted May 17, 2012 Share Posted May 17, 2012 Well if you are a regular user of that forum then you are usually of the mind that you can invest for yourself, those guys are just there as a sounding board. The ones I listed of course have impeccable credentials and there are many more like them. That is not to say that investing yourself without an advisor is for everyone. Personally I'm 100% confident in doing it myself and I don't lose a wink of sleep over it. There's a lot more to planning than just investing. Link to comment Share on other sites More sharing options...
BillsFanNC Posted May 17, 2012 Share Posted May 17, 2012 There's a lot more to planning than just investing. Indeed there is, I've got it covered. Link to comment Share on other sites More sharing options...
Chef Jim Posted May 17, 2012 Share Posted May 17, 2012 Indeed there is, I've got it covered. I bet you don't. I've never seen anyone that did and I've seen thousands of cases. Link to comment Share on other sites More sharing options...
DDD Posted May 17, 2012 Author Share Posted May 17, 2012 Thanks for trying to help everyone. I have about 20-25 years until I retire. I contribute the max 17k allowable to avoid taxes and get the full employee match. I also contribute to a 529 plan for kids college and cash reserve is good so I don't need to touch the 401K money. I generally have read 60% of my portfolio should be in stocks (30-40% domestic, 20-30% international), 30% in bonds, and 10% in fixed income. I currently am in a target fund offered by Fidelity (Fidelity Freedom Fund 2035). I have access to index funds (large blend, mid blend, foreign large blend) and actively managed funds (large, mid, small, value, growth, blend). I've been told to look at fund performance obviously, Moringstar ratings, and also how long the fund manager has been present. That said, I still haven't a clue on which funds to pick. Does it really matter which funds I pick as long as I diversify and the allocations get rebalanced over time? Link to comment Share on other sites More sharing options...
Chef Jim Posted May 17, 2012 Share Posted May 17, 2012 Thanks for trying to help everyone. I have about 20-25 years until I retire. I contribute the max 17k allowable to avoid taxes and get the full employee match. I also contribute to a 529 plan for kids college and cash reserve is good so I don't need to touch the 401K money. I generally have read 60% of my portfolio should be in stocks (30-40% domestic, 20-30% international), 30% in bonds, and 10% in fixed income. I currently am in a target fund offered by Fidelity (Fidelity Freedom Fund 2035). I have access to index funds (large blend, mid blend, foreign large blend) and actively managed funds (large, mid, small, value, growth, blend). I've been told to look at fund performance obviously, Moringstar ratings, and also how long the fund manager has been present. That said, I still haven't a clue on which funds to pick. Does it really matter which funds I pick as long as I diversify and the allocations get rebalanced over time? I need to preface this with the fact that I'm an advisor. Take a tip from me and meet with a professional. If you're putting that much into a retirment plan each year you need to work with someone that can make sure you're doing the right thing. Have them look at your taxes, your investments, your estate plan and your protection planning. Sure proper diversification and asset allocation, dollar cost averaging and annual rebalancing are keys but if you don't have a clue on what funds to invest in pay someone to help you and find someone that does everything (investment, tax, estate and protection planning). Don't leave it to people on a message board.....especially THIS message board. Link to comment Share on other sites More sharing options...
DDD Posted May 17, 2012 Author Share Posted May 17, 2012 I need to preface this with the fact that I'm an advisor. Take a tip from me and meet with a professional. If you're putting that much into a retirment plan each year you need to work with someone that can make sure you're doing the right thing. Have them look at your taxes, your investments, your estate plan and your protection planning. Sure proper diversification and asset allocation, dollar cost averaging and annual rebalancing are keys but if you don't have a clue on what funds to invest in pay someone to help you and find someone that does everything (investment, tax, estate and protection planning). Don't leave it to people on a message board.....especially THIS message board. I get it, especially this message board! My original question was has anyone heard about or used the "Smart 401K" website as they apparently look at the funds available from an employer and make specific recommendations on which funds to use based on one's age, assets, and risk tolerance. Link to comment Share on other sites More sharing options...
BillsFanNC Posted May 17, 2012 Share Posted May 17, 2012 I bet you don't. I've never seen anyone that did and I've seen thousands of cases. Maybe not, but everything on this page that applies to my situation, I've planned for. My link Link to comment Share on other sites More sharing options...
BillsFanNC Posted May 17, 2012 Share Posted May 17, 2012 I get it, especially this message board! My original question was has anyone heard about or used the "Smart 401K" website as they apparently look at the funds available from an employer and make specific recommendations on which funds to use based on one's age, assets, and risk tolerance. I'd still say don't pay for someone to simply tell you which 401k options to pick, as others have said there is way more to consider besides just picking 401k funds in a vacuum. If you peruse those forums I linked and find that you might be interested in learning and asking questions over there, I do believe that you won't be steered wrong. But that's as far as my advice goes, I certainly wouldn't recommend that anyone take any specific financial or investing advice from people on this board. If you don't have the interest or time to do it yourself then you should do what Chef Jim suggests and meet with a planner. If you do, make sure it's a fee-only planner. Link to comment Share on other sites More sharing options...
KD in CA Posted May 17, 2012 Share Posted May 17, 2012 I get it, especially this message board! My original question was has anyone heard about or used the "Smart 401K" website as they apparently look at the funds available from an employer and make specific recommendations on which funds to use based on one's age, assets, and risk tolerance. No but if that's what you're comfortable doing, than do it. Link to comment Share on other sites More sharing options...
zevo Posted May 17, 2012 Share Posted May 17, 2012 Im in a similar situation....i had my 401k set up by an advisor 4 years ago and haven't touched it since (bad).....i view things like this...id rather pay a professional that does this kind of thing as a career then to take matters into my own hands....I do what i do...they do what the do.....I pay a planner a flat rate (500$) to formulate a plan for me and my wife and I put it into action....Well worth it for me as I don't have the time energy or confidence to do it on my own. Link to comment Share on other sites More sharing options...
Chef Jim Posted May 17, 2012 Share Posted May 17, 2012 I'd still say don't pay for someone to simply tell you which 401k options to pick, as others have said there is way more to consider besides just picking 401k funds in a vacuum. If you peruse those forums I linked and find that you might be interested in learning and asking questions over there, I do believe that you won't be steered wrong. But that's as far as my advice goes, I certainly wouldn't recommend that anyone take any specific financial or investing advice from people on this board. If you don't have the interest or time to do it yourself then you should do what Chef Jim suggests and meet with a planner. If you do, make sure it's a fee-only planner. So you're telling him to get advice from people he's never met? He's putting $17k into his 401k every year. Without matching that could be worth $1.2 mill in 25 years. And that's just one piece of his plan. How on earth could you accept advice from someone you've never met, have not had the chance to sit across the table and look them in the eye or check for their references. A good advisor is not just an investment specialist. They're life advisors. You yourself said you could probably be missing some things and what you're missing could mean disaster for you and/or your heirs. How up do date are the people on that message board with regard to the ever changing tax and estate laws? Do they have access to some of the most advanced and brilliant minds in this industry? And here's the kicker. Will they meet with you on a regular basis to review and make any necessary adjustments to what they've recommended? No. You feel comfortable doing it yourself. That's fine. But anyone could benefit for having an expert review their plan with a fine toothed comb to uncover any ticking time bombs. You wouldn't believe the things I've found in people's plans who "had it all taken care of". Oh and just because they are fee only doesn't mean their any good. But I will tell you this we make a shitload more money over time as fee based advisors than as commission based. Link to comment Share on other sites More sharing options...
Gordio Posted May 17, 2012 Share Posted May 17, 2012 So you're telling him to get advice from people he's never met? He's putting $17k into his 401k every year. Without matching that could be worth $1.2 mill in 25 years. And that's just one piece of his plan. How on earth could you accept advice from someone you've never met, have not had the chance to sit across the table and look them in the eye or check for their references. A good advisor is not just an investment specialist. They're life advisors. You yourself said you could probably be missing some things and what you're missing could mean disaster for you and/or your heirs. How up do date are the people on that message board with regard to the ever changing tax and estate laws? Do they have access to some of the most advanced and brilliant minds in this industry? And here's the kicker. Will they meet with you on a regular basis to review and make any necessary adjustments to what they've recommended? No. You feel comfortable doing it yourself. That's fine. But anyone could benefit for having an expert review their plan with a fine toothed comb to uncover any ticking time bombs. You wouldn't believe the things I've found in people's plans who "had it all taken care of". Oh and just because they are fee only doesn't mean their any good. But I will tell you this we make a shitload more money over time as fee based advisors than as commission based. Especially with a 401 K where your investing options are limited in a particular plan just follow the graph on what your age is & your tolerance for risk is & diversify your portfolio that way. Chances are you will do just as well as if you meet with a financial advisor & he tells you what to do. If the market goes up your going to make money if the market goes down your going to lose money. If you can not stand the day to day volatility of something the guy is not going to touch for 35 years put your money into less risky stuff. It is basic common sense if you ask me. Why should he pay a guy like you for pointing out the obvious. This is not rocket science. I know your a little different from a stock broker but when I was younger before I got married & had kids & actually had a little extra money to fool around with every month I used to play the stocks. My friend was a broker @ a brokerage firm in Buffalo & he got me in there. Normally they would not except any clients without at least $100K to invest but he waived that exception for me since I did not have anywhere close to that. I swear, every stock I told him to buy for me made money, every stock that I listened to his stupid analysts that I bought lost money. This went on for about 3 years. Finally I had enough. I cashed out, our friendship suffered & I have not talked to him since. I just feel in your industry as a whole alot of the advice you guys give has ulterior motives for you guys & always is not given with the customer's best interest in mind. Link to comment Share on other sites More sharing options...
Juror#8 Posted May 17, 2012 Share Posted May 17, 2012 Opt for 401K up to your company's match and then put anything over that into a Roth IRA. If you can contribute yourself into a lower tax bracket (by lessening your AGI), that's even better. Keep in mind that your Roth can be an advantage to you as your paying the taxes on it now. Considering that tax rate obligations will likely increase in the next 40 years, you can be diluting the purchasing power of your money if you defer your taxes until then. By paying your taxes now you "lock in the rate" so to speak. But......most people will be in a lower tax bracket post-retirement so it may behoove you to wait and be taxed later. Just depends on where you see yourself in 30-50 years. With respect to where to put our contributions - read your company's fund descriptions. It may seem like Latin but the explanations around risk and recent quarterly return is instructive. Every company should have a cash equivalent fund - usually that's some type of stable value fund. No matter how you allocate the remainder of your contributions, you should have 15-20% between stable value and/or bond funds. Many people run to svf and bond funds when the market turns to guard their money after it's taken a bit of a loss. The only thing that does is locks in the hit. You don't need to pay someone to explain to you this stuff. Good luck. Link to comment Share on other sites More sharing options...
Chef Jim Posted May 17, 2012 Share Posted May 17, 2012 Especially with a 401 K where your investing options are limited in a particular plan just follow the graph on what your age is & your tolerance for risk is & diversify your portfolio that way. Chances are you will do just as well as if you meet with a financial advisor & he tells you what to do. If the market goes up your going to make money if the market goes down your going to lose money. If you can not stand the day to day volatility of something the guy is not going to touch for 35 years put your money into less risky stuff. It is basic common sense if you ask me. Why should he pay a guy like you for pointing out the obvious. This is not rocket science. I know your a little different from a stock broker but when I was younger before I got married & had kids & actually had a little extra money to fool around with every month I used to play the stocks. My friend was a broker @ a brokerage firm in Buffalo & he got me in there. Normally they would not except any clients without at least $100K to invest but he waived that exception for me since I did not have anywhere close to that. I swear, every stock I told him to buy for me made money, every stock that I listened to his stupid analysts that I bought lost money. This went on for about 3 years. Finally I had enough. I cashed out, our friendship suffered & I have not talked to him since. I just feel in your industry as a whole alot of the advice you guys give has ulterior motives for you guys & always is not given with the customer's best interest in mind. Once again if you think that investments are the only piece to the financial planning puzzle you're making a big mistake and if you think a 401k is the only piece of the investment puzzle you're also making a mistake. Link to comment Share on other sites More sharing options...
BillsFanNC Posted May 17, 2012 Share Posted May 17, 2012 So you're telling him to get advice from people he's never met? He's putting $17k into his 401k every year. Without matching that could be worth $1.2 mill in 25 years. And that's just one piece of his plan. How on earth could you accept advice from someone you've never met, have not had the chance to sit across the table and look them in the eye or check for their references. A good advisor is not just an investment specialist. They're life advisors. I'm telling him it might be worth his time to learn about this stuff himself, go to those forums and get some honest feedback and then implement the plan himself. If someone doesn't have the slightest inclination to take that on themselves then yes a planner would be wise over just throwing your hands up and randomly picking funds. At the very least educating yourself about the basics would help if he did meet with a planner. You yourself said you could probably be missing some things and what you're missing could mean disaster for you and/or your heirs. I said maybe I have, as in anything is possible, but I don't think that I have. A planner could miss things too. Quite frankly my situation isn't really all that complicated. How up do date are the people on that message board with regard to the ever changing tax and estate laws? Up to date, but again if someone takes it upon themselves to do this it's ultimately on the individual, but that place is a fantastic resource. Again, some people have no interest, or time to want to even begin doing this themselves, I'm just giving an option. Do they have access to some of the most advanced and brilliant minds in this industry? Yes. Some of the profiles that I linked to up thread are in fact leaders in the field and they post there on a regular basis. And here's the kicker. Will they meet with you on a regular basis to review and make any necessary adjustments to what they've recommended? No. Nope, but again people who post there by and large do so because they have decided that they don't need a advisor. You feel comfortable doing it yourself. That's fine. But anyone could benefit for having an expert review their plan with a fine toothed comb to uncover any ticking time bombs. You wouldn't believe the things I've found in people's plans who "had it all taken care of". Oh and just because they are fee only doesn't mean their any good. But I will tell you this we make a shitload more money over time as fee based advisors than as commission based. Absolutely, if someone decides to go the planner route they should interview a few to find out who they are most compatible with. The reason I recommend fee-only is because the commission based planners, for obvious reasons, don't often have their clients best interests in mind when making recommendations. Link to comment Share on other sites More sharing options...
Gordio Posted May 17, 2012 Share Posted May 17, 2012 Once again if you think that investments are the only piece to the financial planning puzzle you're making a big mistake and if you think a 401k is the only piece of the investment puzzle you're also making a mistake. Well that is one way of looking at it & I am sure the cliental you have is at the very least in the upper upper middle calss & has a large portion of disposable income to invest in but for the middle class & below who are for the most part living paycheck to paycheck & scraping to get by I don't know if getting a financial advisor is really worth it. I mean I have my 401k & I put in the company match which is 6% & I have been in it for 14 years but I have to be honest with you I don't have any other money to invest/save. I have a savings account & that is about it. So I really don't know why I would need a financial advisor. Link to comment Share on other sites More sharing options...
erynthered Posted May 17, 2012 Share Posted May 17, 2012 I just feel in your industry as a whole alot of the advice you guys give has ulterior motives for you guys & always is not given with the customer's best interest in mind. There are scum bags in every business, Gord. You know that. But using the term "as a whole" is a bit of a stretch. Link to comment Share on other sites More sharing options...
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