Do it myself or hire a pro?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
phelan
Posts: 4
Joined: Wed Jan 31, 2018 12:29 am

Do it myself or hire a pro?

Post by phelan » Wed Jan 31, 2018 12:48 am

Only writing in because I have been FLOORED by the caliber of advice, generosity of time, and support from the folks on this forum- you all ROCK!

In an investment paralysis purgatory pickle. Had a 'liquidity event' (sold a long held, hard worked for property) that, combined with an IRA comes to a little over 2.6M. With some other assets, my husband and I now have about 3M to invest. In way over my head thinking about managing this- managed my own SEP with Vanguard Funds, but the 3M is a daunting amount- well managed, it's retirement soon. Blow it and i'll spend my golden years in regret. Dove in with one stupid 'wealth management' company where they put us in a formula investing program (of over 50% bonds), sort of smug folk, not a fit, so we bailed. Now trying to make the right call and stay the course, whatever that ends up being. Spoke with an independent financial planner, super nice guy, referred by trusted peeps who LOVE him, very passionate, but broker based, some load funds, fees a fair 1% of the portion not in the front load fund (load fee 2% for 1M invested, then no further fee on that portion of the portfolio), and maybe some individual stock recommendations that seem risky (all time high pricing). Speaking with the seemingly ubiquitous Creative Planning to compare, they seem comprehensive and thoughtful, but again, 1% fee. Toyed with the idea of settling on some index funds and trying to manage it myself, but am crazy nervous about blowing it. We've worked really, really hard for this. Reading all your input has me wondering if anyone had thoughts or advice they wanted to throw out. Terribly grateful for any input....

Jon H
Posts: 108
Joined: Sun Jan 21, 2018 2:50 pm

Re: Do it myself or hire a pro?

Post by Jon H » Wed Jan 31, 2018 6:33 am

You might have already won the game.

If you haven’t already done so, read and view the getting started. Knowledge is power. Read, read, read. Bogle’s little book and Bernstein’s booklet are good places to start.

Determine your current yearly expenses and your anticipated retirement yearly expenses. Multiply retirement yearly expenses by 25 or if for longer than 30 years retirement multiply by 30 or more. This is your retirement "number." If you already have it you are in wealth preservation mode.

Develop an investing policy statement and follow it. You can still do this for wealth preservation.

All of this will take you a few weeks to a few months.

It’s better to do it your way than to pay someone to do it the wrong way (for you).

Ask a lot of questions.
Last edited by Jon H on Wed Jan 31, 2018 8:00 am, edited 1 time in total.
Consider gain and loss, but never be greedy and everything will be alright (fortune cookie)

User avatar
Watty
Posts: 14630
Joined: Wed Oct 10, 2007 3:55 pm

Re: Do it myself or hire a pro?

Post by Watty » Wed Jan 31, 2018 6:52 am

The one percent fee is likely just the tip of the iceberg and the loads (!) and high expense ratios, and hidden fees will add a lot more to the costs.

There are all sorts of details and assumptions but academic studies have shown that someone that is 65 and looking at a 30 year retirement would have likely done ok in the past if they started out with about a 4% withdrawal rate. This is called a Safe Withdrawal Rate.

https://www.bogleheads.org/wiki/Safe_withdrawal_rates

The problem with this is that the 1% fee and the hidden fees also come out of that 4% so that if you are paying them a total of 2% each year that is half your income that you are giving to the advisor. :shock: You would also have to pay taxes out of that 4% which would impact you too.

If you are retiring at a younger age then your safe withdrawal rate would be lower than 4% which would make things worse.

If you are still in the accumulation phase the impact would be similarly bad.

Vanguard will provide advisory services for 0.3% a year and they will not put you in expensive funds. You could use them for a few years then start managing your account yourself if you wanted to once your portfolio is in order and pretty much on automatic pilot.

https://investor.vanguard.com/advice/personal-advisor
Last edited by Watty on Wed Jan 31, 2018 8:19 am, edited 1 time in total.

dlw322
Posts: 56
Joined: Thu Mar 29, 2012 8:01 pm

Re: Do it myself or hire a pro?

Post by dlw322 » Wed Jan 31, 2018 7:02 am

You could always start with Vanguard's Personal Advisor Services. When I first discovered Bogleheads and wanted to fire my broker and move everything to Vanguard it seemed a daunting task. I used the personal advisor services of vanguard for 9 months. (once you sign up with them they have a minimum. It is a minimum dollar amount and not time that you have to stay with the personal advisor services.) This was a while ago so check if it is different now.

https://investor.vanguard.com/financial ... visor-fees

Their fee is .3%. I found it well worth the money spent as they set everything up and got me comfortable enough to handle everything on my own going forward. They also reviewed all of my estate planning documents. They pointed out some errors/omissions in my estate plan and made recommendations for changes. Once I had my estate plan redone they reviewed all of the documents again.

I know many on this forum might disagree with me about whether it is worth the .3% or not but I feel it was very helpful and definitely worth the money spent. After they get everything set up for you and you have the minimum $/time spent you can tell them you want to stop the advisor services and handle everything on your own going forward.

Grt2bOutdoors
Posts: 19546
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Do it myself or hire a pro?

Post by Grt2bOutdoors » Wed Jan 31, 2018 7:14 am

Welcome to the forum!
You can use the Vanguard PAS service for 0.30%, but the best part about it is you can choose to discontinue the service at any time. Read a few books - All About Asset Allocation - Rick Ferri, The Bogleheads Guide to Investing and/or retirement investing - great books. Read the wiki- read up on a 3 Fund Portfolio. Save yourself from paying for someone’s new car, kids college fund - every year! Can you imagine parting with 5% of your original principal in just 5 years after a lifetime of accumulating it? That’s what will happen at a minimum if you sign on with those “croupiers” - as John Bogle calls them.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

User avatar
Toons
Posts: 13063
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: Do it myself or hire a pro?

Post by Toons » Wed Jan 31, 2018 7:22 am

3 mill to invest.
Stand Fast For A While.
Think It Through.
Patience.
Keep Reading.
Taxes are part of the equation.
Keep It Simple.
Consider,Index Funds,Tax Exempt Bond Fund.
Have Confidence :happy
I would invest it myself.
:happy
Last edited by Toons on Wed Jan 31, 2018 8:30 am, edited 1 time in total.
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

User avatar
Pajamas
Posts: 6015
Joined: Sun Jun 03, 2012 6:32 pm

Re: Do it myself or hire a pro?

Post by Pajamas » Wed Jan 31, 2018 7:50 am

You don't need to pay anyone to do it. You've already been doing it yourself, this is just an additional amount of cash to invest alongside the investments you already had. A large amount, but different in quantity, not essence.

It's not exactly an unexpected situation for you, but most of the information here might be helpful to you:

https://www.bogleheads.org/wiki/Managing_a_windfall

More general information can be found here:

https://www.bogleheads.org/wiki/Getting_started

Since you have now "won the game" are concerned that you might blow it and live your golden years in regret, you might not want to take unneeded risk, so the 50% in bonds doesn't sound completely crazy to me in your circumstances.

Katietsu
Posts: 1667
Joined: Sun Sep 22, 2013 1:48 am

Re: Do it myself or hire a pro?

Post by Katietsu » Wed Jan 31, 2018 8:15 am

I am concerned about you doing it yourself right now. You broke off with the original wealth management company. Your only criticism that you voiced was that the put 50% in bonds and invested on a formulaic portfolio. Then you described an advisor that you liked you was going to charge you 1% AUM, a load on top of that, potentially use high ER funds and maybe throw in some individual stocks.

Based only on this limited information, I would be suggesting that nothing you told us about the wealth management company was a red flag but that you should run from the advisor you most recently interviewed. The fact that you are intrigued by this latest advisor tells me you are not ready to DIY.

What about hiring an hourly financial planner like Allan Roth or a member of the NAPFA who will help you get set up and invested but whose goal is for you to be able to then manage it yourself.

Dottie57
Posts: 4837
Joined: Thu May 19, 2016 5:43 pm

Re: Do it myself or hire a pro?

Post by Dottie57 » Wed Jan 31, 2018 8:35 am

With time and effort , do it yourself. Keep your choices simple.

You do not want your 3 million to be someone's banquet ticket. Save yourself some heartache.

User avatar
peterinjapan
Posts: 468
Joined: Fri May 15, 2015 8:41 am
Location: Japan!

Re: Do it myself or hire a pro?

Post by peterinjapan » Wed Jan 31, 2018 9:15 am

Congratulations on your windfall! There's lots of good advice here, I also really enjoy Congratulations on your win fall! There's lots of good advice here, I also really enjoy Paul Merriman's podcasts. Be wary of low quality sites like Reddit.

bloom2708
Posts: 5015
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Do it myself or hire a pro?

Post by bloom2708 » Wed Jan 31, 2018 9:16 am

Welcome.

You are in the right place. Yes, you can do it yourself. You now have a team of advisors here to assist. You can invest $3,000,000 the very same way you invest $30,000. There really is no need to make it more complicated.

Start here:

https://www.bogleheads.org/wiki/Boglehe ... philosophy

Watch the videos, go over the 10 keys to being a Boglehead.

The best part of doing it yourself is you will save $30k per year. Maybe even more as compared to that 1% + high expense ratio advisor. What can you do with that much more money to spend each year?

Do nothing for 30-60 days with the money. Stop going to visit advisors during this period. Most are salesmen. They are great at selling stuff and parting you from your money.

Play around with different scenarios with this calculator:

http://www.dinkytown.net/java/CompareFees.html

It allows you to compare the affects of 3 different levels of fees over a period of years. Our portfolio at Vanguard is .07%. Use 1% and 2%, plug in your numbers and see the effects over 10, 20, 30 years. Mind blowing numbers!

As you read and pick up more information, you will start to formulate a plan. Start with understanding the 3 fund portfolio. Total US Stocks, Total International Stocks and Total US Bond. You can literally "own the market" with 3 funds. There are also combination funds like LifeStrategy funds that are made up of the 3 funds plus international bonds. You can own the entire stock and bond market with one fund.

Go slow. It does not have to be hard or complicated. There are some nuances like placing funds for tax efficiency. Even that is not hard to pick up.

Congrats on your success and welcome again!
"We are not here to please, but to provoke thoughtfulness." --Unknown Boglehead

Jeep512
Posts: 39
Joined: Fri Oct 13, 2017 4:34 am

Re: Do it myself or hire a pro?

Post by Jeep512 » Wed Jan 31, 2018 9:40 am

You will get lots of good advice here. A few things that I would note:

1) I will never pay a load, commission, recurring fees, etc. Ever. Basically, I am suggesting that you completely forget about your "Super Nice Guy" financial planner. Paying those fees/loads will NOT guarantee higher returns. Typically, they guarantee LOWER returns.

2) Figure out your tolerance for risk and what are your goals. I should have put this number 1, as it is the most important.
It sounds like you may be more comfortable in low risk investments to preserve what you have. That is perfectly acceptable if that is what you decide.

3) Doing nothing right away will not hurt you. Don't be overwhelmed and get in a rush to do something.

Edge_90
Posts: 29
Joined: Sun Jul 31, 2016 3:10 pm

Re: Do it myself or hire a pro?

Post by Edge_90 » Wed Jan 31, 2018 10:28 am

Great advice already given above. I just can't imagine paying all those loads and fees, especially after having "won". It sounds like you could be overwhelmed by the number of options. It also sounds like this all could potentially go into taxable? In at least the short term would something like Vanguard Tax Managed Balanced Fund (VTMFX) be worth considering? Miniscule ER (0.09%), balanced roughly 50/50 stocks/bonds, goal to minimize taxable $. Perhaps too much stock for your needs at this point, but thought I'd at least put it out there. I'd be looking at it pretty hard for a taxable windfall myself.

pennywise
Posts: 517
Joined: Sat May 31, 2014 6:22 am

Re: Do it myself or hire a pro?

Post by pennywise » Wed Jan 31, 2018 10:31 am

dlw322 wrote:
Wed Jan 31, 2018 7:02 am
You could always start with Vanguard's Personal Advisor Services. When I first discovered Bogleheads and wanted to fire my broker and move everything to Vanguard it seemed a daunting task. I used the personal advisor services of vanguard for 9 months. (once you sign up with them they have a minimum. It is a minimum dollar amount and not time that you have to stay with the personal advisor services.) This was a while ago so check if it is different now.

https://investor.vanguard.com/financial ... visor-fees

Their fee is .3%. I found it well worth the money spent as they set everything up and got me comfortable enough to handle everything on my own going forward. They also reviewed all of my estate planning documents. They pointed out some errors/omissions in my estate plan and made recommendations for changes. Once I had my estate plan redone they reviewed all of the documents again.

I know many on this forum might disagree with me about whether it is worth the .3% or not but I feel it was very helpful and definitely worth the money spent. After they get everything set up for you and you have the minimum $/time spent you can tell them you want to stop the advisor services and handle everything on your own going forward.
This was what I did with a windfall, and what I was planning to suggest. I liken using Vanguard PAS to having training wheels on your financial bike. Having a sudden large amount to invest (congratulations BTW!) can definitely feel like you're a piece of chum in a school of sharks, ie there are many, many professionals out there who will be very happy to set your mind at ease...for a percentage of your new windfall :wink: .

With Vanguard you have confidence that the advice is fidicuary so they are truly working for your benefit. And as noted if and when you feel confident about managing your money yourself you can drop your Vanguard PAS training wheels and ride off on your own--you'll have the money invested in a solid safe mix so really you can to a large extent set it and forget it. And that means enjoying that windfall while it funds your life of ease: winning!

One other suggestion I have is to find a good accountant. That's the only other finance professional we have now; someone who knows tax law, investment fiscal implications etc. but as with Vanguard isn't taking a percentage of your investment account. That way you will also have peace of mind that all the legal and fiscal issues are being managed correctly.

Good luck and again OP congratulations!

pkcrafter
Posts: 13137
Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: Do it myself or hire a pro?

Post by pkcrafter » Wed Jan 31, 2018 10:52 am

Welcome Phalen, you are getting good advice, but I'll add a few comments.

First of all, this is your money and no one has a greater responsibility then you to see that it's managed properly. "Super nice" does not qualify anyone to manage your money. Of course they are going to be nice, they want something from you--your money. So, you must know enough about investing to correctly judge an advisor's recommendations. Once you can do that, you can also manage yourself. There are many people on the forum that are managing 3MM. You don't need, and do not want complexity, which is what an advisor will give you. If he gave you a simple, low cost 3-fund portfolio you would not think you were getting your money's worth. :oops:

I have described entering retirement (no more income!) as suddenly finding yourself on a tightrope without a net below. Yeah, it's a bit scary, but if you keep the withdrawal rate at 4% or less and select an asset allocation that isn't too risky, you in effect, provide the net below.

Keep in mind that investing does not have to be complicated just because there is more in the pot--the recipe is still the same.

Your comment about someone suggesting less that 50% in equities may not be a bad recommendation. You are now shifting from accumulation to preservation, but the proper AA (asset allocation) may be something different. You didn't say what it is currently, but you should be concerned about a bad sequence of market returns starting now. AA should not be too high unless your withdrawal rate is going to be lower than 4%.

For portfolio management, set aside some $$ for emergencies and short term goals, if any. Then look at all long-term retirement money in all accounts as one portfolio.

Finally, stay on the board, ramp up on the learning curve by following the forum and reading the Wiki and a book or two. Your first priority is to determine if your current AA is too high heading into retirement. Here is our suggested way of listing your situation, which in itself, may enlighten you. You can go back to your first post and edit it to add the needed information. by clicking on the pencil image in the upper right corner.

viewtopic.php?f=1&t=6212

You have already received links to philosophy and getting started, so you're on your way.




Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

User avatar
ruralavalon
Posts: 14273
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: Do it myself or hire a pro?

Post by ruralavalon » Wed Jan 31, 2018 11:14 am

Welcome to the forum :) .

phelan wrote:
Wed Jan 31, 2018 12:48 am
Only writing in because I have been FLOORED by the caliber of advice, generosity of time, and support from the folks on this forum- you all ROCK!

In an investment paralysis purgatory pickle. Had a 'liquidity event' (sold a long held, hard worked for property) that, combined with an IRA comes to a little over 2.6M. With some other assets, my husband and I now have about 3M to invest. In way over my head thinking about managing this- managed my own SEP with Vanguard Funds, but the 3M is a daunting amount- well managed, it's retirement soon. Blow it and i'll spend my golden years in regret. Dove in with one stupid 'wealth management' company where they put us in a formula investing program (of over 50% bonds), sort of smug folk, not a fit, so we bailed. Now trying to make the right call and stay the course, whatever that ends up being. Spoke with an independent financial planner, super nice guy, referred by trusted peeps who LOVE him, very passionate, but broker based, some load funds, fees a fair 1% of the portion not in the front load fund (load fee 2% for 1M invested, then no further fee on that portion of the portfolio), and maybe some individual stock recommendations that seem risky (all time high pricing). Speaking with the seemingly ubiquitous Creative Planning to compare, they seem comprehensive and thoughtful, but again, 1% fee. Toyed with the idea of settling on some index funds and trying to manage it myself, but am crazy nervous about blowing it. We've worked really, really hard for this. Reading all your input has me wondering if anyone had thoughts or advice they wanted to throw out. Terribly grateful for any input....
Suddenly having a larger sum to invest, and planning for imminent retirement, can both produce some anxiety. But the principles for sound investing remain the same.

Please post your financial details in the format pkcrafter gave you, "Asking Portfolio Questions". Also do you have a solid estimate of your annual retirement expenses? What are your projected Social Security benefits? Will there be any pension income, if so how much? Simply use the edit button to amend your original post.

I think you will find that the process of gathering your information together in one olsce will help you see the overall picture clearly and make it all less frightening.
Last edited by ruralavalon on Wed Jan 31, 2018 11:16 am, edited 1 time in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

User avatar
tfb
Posts: 7980
Joined: Mon Feb 19, 2007 5:46 pm
Contact:

Re: Do it myself or hire a pro?

Post by tfb » Wed Jan 31, 2018 11:15 am

Between doing it yourself and hiring a pro to manage your money, there's a 3rd option: pay someone for advice but manage the money yourself by following the advice received. Full disclosure: I offer a service that helps people find this 3rd option. At 0.30% fee on $3 million, the Vanguard PAS service costs $9,000, even if you terminate it after one year. With an independent advisor who only offers advice, you likely will pay much less than that amount and you will get so much more than you get from Vanguard PAS.
Last edited by tfb on Wed Jan 31, 2018 11:28 am, edited 1 time in total.
Harry Sit, taking a break from the forums.

Nate79
Posts: 3754
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

Re: Do it myself or hire a pro?

Post by Nate79 » Wed Jan 31, 2018 11:24 am

Investing can be as complex or as simple as you want to make it. Want simple, target date fund. Done.

BlackStrat
Posts: 265
Joined: Wed Apr 29, 2015 9:20 am

Re: Do it myself or hire a pro?

Post by BlackStrat » Wed Jan 31, 2018 11:34 am

You're correct to balk at the fee structure these advisors attempt to collect.

Read up on all the above posts and links and continue to educate yourself. Asset Allocation, diversification, and understanding how taxes and RMD's are handled with your investments in retirement are key.

Also read up on 'Safe Withdrawal Rate' (SWR) studies which determine how much you can safely withdraw from a portfolio in retirement for a given number of years before your money is depleted.

For instance, the Trinity Study says a 4% rate of withdrawal is safe for a 30-year period for a roughly 60-40 (stocks to bonds) asset allocation. If you're paying an advisor at least 1%, he's receiving 25% of your available yearly retirement money; an obscene amount if you look at it that way (you're $3M would result in a SWR of $120k yearly minus the advisors $30k+ in fees).

Then you continue to check and see that most advisors do NOT beat a simple total stock index most years. Some may beat it occasionally but you have to figure in their fees and the taxes generated by the turnover in trading (buying and selling) during the year.

You can do this yourself - stick around here and read read read!!

good luck!

deltaneutral83
Posts: 913
Joined: Tue Mar 07, 2017 4:25 pm

Re: Do it myself or hire a pro?

Post by deltaneutral83 » Wed Jan 31, 2018 12:37 pm

phelan wrote:
Wed Jan 31, 2018 12:48 am
Spoke with an independent financial planner, super nice guy, referred by trusted peeps who LOVE him, very passionate, but broker based, some load funds, fees a fair 1% of the portion not in the front load fund (load fee 2% for 1M invested, then no further fee on that portion of the portfolio), and maybe some individual stock recommendations that seem risky (all time high pricing). Speaking with the seemingly ubiquitous Creative Planning to compare, they seem comprehensive and thoughtful, but again, 1% fee. Toyed with the idea of settling on some index funds and trying to manage it myself, but am crazy nervous about blowing it. We've worked really, really hard for this. Reading all your input has me wondering if anyone had thoughts or advice they wanted to throw out. Terribly grateful for any input....
Passionate means higher fees. Most people who "Love" their broker have no idea how he's doing against his benchmarks and if the asset allocation is appropriate. Scoring 90 points in a college basketball game is great (your returns with pro in 2017), but not if the opponent (S&P and other applicable benchmarks) scores 94. Going to the same church and hanging out in the same social circles as your pro does not equal good investing results. 1% AUM plus loads equals Run Forrest Run. I'll bet you wind up with a 60/40 balanced fund when you sort it out, and taking some time to sort it out is a good thing.

KSActuary
Posts: 379
Joined: Fri Jan 13, 2012 10:53 pm

Re: Do it myself or hire a pro?

Post by KSActuary » Wed Jan 31, 2018 2:42 pm

Start with the 3 fund portfolio and try to understand why its simplicity may fit you. Complex investment solutions are , most often times, used to keep you confused. The lack of volatility in the market is making some investors uneasy while others are piling in. My guess your next issue will be riding out the next big volatility event. This requires some hand holding for some while others can come here and get enough information to stand pat.

Good luck.

phelan
Posts: 4
Joined: Wed Jan 31, 2018 12:29 am

Re: Do it myself or hire a pro?

Post by phelan » Wed Jan 31, 2018 4:13 pm

Jon H wrote:
Wed Jan 31, 2018 6:33 am
You might have already won the game.

If you haven’t already done so, read and view the getting started. Knowledge is power. Read, read, read. Bogle’s little book and Bernstein’s booklet are good places to start.

Determine your current yearly expenses and your anticipated retirement yearly expenses. Multiply retirement yearly expenses by 25 or if for longer than 30 years retirement multiply by 30 or more. This is your retirement "number." If you already have it you are in wealth preservation mode.

Develop an investing policy statement and follow it. You can still do this for wealth preservation.

All of this will take you a few weeks to a few months.

It’s better to do it your way than to pay someone to do it the wrong way (for you).

Ask a lot of questions.
Bless you and thank you Jon- fantastic advice....am deeply reading, and felt foolish for not starting there last night before I posted here. Probably not quite at wealth preservation (am 57, husband 54, come from a line of long livers), but can't thank you enough for your insights in how to determine gross needs. Honestly, am just so impressed and grateful for this site and you wonderful contributors that take time to give advice to complete strangers....truly remarkable! Thank you!!!!!!

mikegerard
Posts: 92
Joined: Tue Mar 06, 2012 9:15 am

Re: Do it myself or hire a pro?

Post by mikegerard » Wed Jan 31, 2018 4:31 pm

My advice is to keep reading here and find a fee-only advisor. You will see some online here or you could find someone local to you. I personally don't think that person needs to be near you...there are plenty of online meeting tools like zoom where you can share screens and video and audio for free. Paying 1% is $30,000 per year. For that amount of money, I would want someone to be spending around 200 hours a year working on my account.

You can do this. There are a lot of people on here managing similar porfolios.

Feel free to private message me if you want to talk more.

Mike

phelan
Posts: 4
Joined: Wed Jan 31, 2018 12:29 am

Re: Do it myself or hire a pro?

Post by phelan » Wed Jan 31, 2018 4:48 pm

Good Lord....had no idea there were so many of you amazing people out there- I want to post and say thank you to each and everyone who posted advice...taking notes from all of your 'offerings'. If I don't get to each of you individually for a thank you, please know your input has been read, written down, and APPRECIATED beyond words.....!!!

phelan
Posts: 4
Joined: Wed Jan 31, 2018 12:29 am

Re: Do it myself or hire a pro?

Post by phelan » Wed Jan 31, 2018 5:01 pm

Katietsu wrote:
Wed Jan 31, 2018 8:15 am
I am concerned about you doing it yourself right now. You broke off with the original wealth management company. Your only criticism that you voiced was that the put 50% in bonds and invested on a formulaic portfolio. Then you described an advisor that you liked you was going to charge you 1% AUM, a load on top of that, potentially use high ER funds and maybe throw in some individual stocks.

Based only on this limited information, I would be suggesting that nothing you told us about the wealth management company was a red flag but that you should run from the advisor you most recently interviewed. The fact that you are intrigued by this latest advisor tells me you are not ready to DIY.

What about hiring an hourly financial planner like Allan Roth or a member of the NAPFA who will help you get set up and invested but whose goal is for you to be able to then manage it yourself.
Smilies, thank you so much for your thoughts and post...there was more to the break-up with the original company than just the bond allocation; primarily zero communication on what they were doing and why, a bit smug, any question we asked was answered with a 'oh, go to the portal and read' or a simplified chart...pretty big firm, we may have been a smallish account. They just seemed bored and not very communicative. Didn't seem worth the 1% fee. We dove in on impulse (and the recommendation of a client), and just had buyer's remorse. The individual broker was deeply engaging, lots of market knowledge, very charismatic, but we've also waned on that for essentially all the reasons you and other posters have mentioned. I so appreciate your time and advice. You are correct in that we just aren't ready to manage this on our own- this forum and the generosity of all those posting is part of our learning process. SO appreciate your advice!!

User avatar
BolderBoy
Posts: 4185
Joined: Wed Apr 07, 2010 12:16 pm
Location: Colorado

Re: Do it myself or hire a pro?

Post by BolderBoy » Wed Jan 31, 2018 5:02 pm

In your case, if you don't want to cut the cord all-at-once, the suggestions of using Vanguard's PAS service for a while, at 0.3% AUM is just excellent.

If you do feel you are ready to do this yourself (and you can, really!), we stand at the ready to help you with suggestions and question answering. There are numerous multi-millionaires who read and post here daily.

Welcome!
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

User avatar
sergeant
Posts: 948
Joined: Tue Dec 04, 2007 11:13 pm

Re: Do it myself or hire a pro?

Post by sergeant » Wed Jan 31, 2018 5:53 pm

Welcome to the forum. Read the Wiki. Hire a pro, Vanguard PAS. Not the one you have met with.
Lincoln 3 EOW!

Jack FFR1846
Posts: 8120
Joined: Tue Dec 31, 2013 7:05 am

Re: Do it myself or hire a pro?

Post by Jack FFR1846 » Wed Jan 31, 2018 6:22 pm

phelan,

1) Do nothing

2) Educate yourself. Use the wiki, lurk the forums, ask questions

3) Make a plan (and feel free to post the plan and/or ask questions)

4) Do it!


Once you write your IPS, you can proceed with $100k or one hundred Billion dollars. It really doesn't matter. If a long lost uncle passed and left me a hundred Billion dollars, I'd invest it as my IPS has me currently invested. 3 funds.....50/50 with 25% of stock in international. I'd rebalance for 15 minutes on my birthday.

A quite valid alternative is to choose a target date fund and put it all in there.
Bogle: Smart Beta is stupid

Post Reply