Is that right? Is that wrong? Arguments about it are perennial in this forum. You will need to form an opinion for yourself.the Traditional advisor usually holds a strong belief in the long-term advantage of stocks over bonds and in reversion to the mean in stock returns; this view is implicit in the typical application of the concept of risk tolerance. Since stocks are deemed less risky in the long run, boosting client stock exposure to improve the odds of meeting financial goals is seen as actually prudent, and stock market price declines mainly trigger advisor coaching to ‘stay the course’. Thus, in the Traditional paradigm, risk perception is skewed to the extent of the belief that stocks are not risky in the long run.
Gwes wrote: I'm not looking for the whole plan and enjoy playing an active role in my finances although my history hasn't been too good. I need a coach to at first help me get going in the right direction with regards to accounts, then offer investment mix advice, and finally recommendations of investment choices.
Gwes wrote:I just turned 50 last month and after getting over the shock of it I started hearing Neidermeyer ask me what I was going to do with the rest of my life. My wife and I have about 15 years of mostly kid free living to prepare for retirement and I know I've got some catching up to do.
Gwes wrote:I'm sorry, my question was rambling and I think I can make it more succinct:
What are the best options for obtaining advice concerning retirement planning?:
Services offered by Vanguard (online, AUM, or their tailored plan service)
Services offered by broker (Schwab)
Just do it myself
Basic sections of an IPS
Financial account information
Where are your financial assets located?
How much is in tax-advantaged accounts (IRA, Roth IRA, 401(k), etc) versus taxable accounts?
How much will you be contributing to these accounts?
Investment objectives, time horizon, risk tolerance
Short-term financial goals and liquidity needs
Long-term financial goals and retirement
Time-frame for funding these goals Length of time assets will be needed Amount of assets to be needed
Asset classes to be used and those to be avoided
Asset classes I must include in my overall investment portfolio
U.S. StocksAsset classes I would rather avoid due to excessive risk, high expenses, or large tax liabilities, etc.
Hedge fundsAsset allocation targets and re-balancing ranges
Actively-managed funds with high taxable turnover or distributions
Consider under-weighting tech sector due to my employment there
Target allocation between stocks and bonds
Target allocation for international investments
Time-frame for altering these allocations
Minimum and maximum deviations from these targets that will trigger portfolio re-balancing
Monitoring and control procedures
Frequency of monitoring
Benchmark for comparison of portfolio returns
Acceptable deviation from benchmark (amount and time)
Concrete procedures for future changes to IPS
Financial reasons for changing IPS
Lifestyle reasons for changing IPS
Reasons not to change IPS (e.g. short-term market performance)
livesoft wrote: One of the tenets that the paid advisors on this forum write about often is that they provide the mental fortitude to stay-the-course for folks who cannot do that on their own. Basically, they say they provide hand-holding to panicky investors.
I wonder if places like Vanguard or Schwab would provide the same level of hand-holding to help prevent behavioral and emotional lapses in investing judgement? Sure Vanguard can give you a set of investments to use (I myself wouldn't even start to call that a plan), but can they make sure you implement it and follow it through thick and thin? In this regard, do these places really "coach"?
JW Nearly Retired wrote:
Are there any one time panic stricken investors reading this that can say they or family members were talked out of selling at the bottom in 08/09 by an advisor? Would love to hear from one.
nedsaid wrote:So you have to learn to tune a lot of this stuff out. Otherwise, you will not be able to stick to a plan. You need to learn about how markets work and how the different asset classes have performed in the past. See the big picture and set your plans accordingly. Don't get distracted by all the noise from the financial media.
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