Not retired at 71 [need SEP advice]

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Seas
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Not retired at 71 [need SEP advice]

Post by Seas » Sun Nov 17, 2019 1:19 pm

Hi I'm not retired but self employed (but not working 9-5) regular income about $245K, next year and thereafter about $375K

I have SEP from last year started at Vanguard and it's just sitting there, I need to invest the max Sep this year, making my total about 100K+ in the Sep.

was thinking moving it to Schwab or TD etc to get some advice on how to get a reasonable return :moneybag

Where should I begin researching and with who :oops:

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JoeRetire
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Re: Not retired at 71

Post by JoeRetire » Sun Nov 17, 2019 3:24 pm

Seas wrote:
Sun Nov 17, 2019 1:19 pm
I have SEP from last year started at Vanguard and it's just sitting there
I assume this is a SEP IRA?

What does "just sitting there" mean? Presumably it's invested in something?
was thinking moving it to Schwab or TD etc to get some advice on how to get a reasonable return
You want to move it out of Vanguard in order to get some advice?

This is confusing.
Don't be a lemming.

Topic Author
Seas
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Re: Not retired at 71

Post by Seas » Sun Nov 17, 2019 3:33 pm

Its just in a interest account,
I wanted advice on investing not sure how to say that another way

Are the advice those brokerage offer worth looking into or they pushing their products

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whodidntante
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Re: Not retired at 71

Post by whodidntante » Sun Nov 17, 2019 3:43 pm

You don't need to pay for advice if you interested enough to do some basic research. Even if you're not interested enough to do that, you can buy a low-cost target date fund or a low-cost asset allocation fund. These are professionally managed portfolios that are less expensive than an advisor. You can buy such funds without leaving Vanguard. See if the LifeStrategy Moderate Growth fund would be appropriate for you.

https://investor.vanguard.com/mutual-fu ... estrategy/#/

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JAZZISCOOL
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Re: Not retired at 71 [need SEP advice]

Post by JAZZISCOOL » Sun Nov 17, 2019 4:05 pm

Hello:

You may want to start here first and look at "beginning steps", etc.:

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

Here is a good read for a "3 fund" portfolio you may want to look at. It discusses asset allocation, etc.

https://www.bogleheads.org/wiki/Three-fund_portfolio

I like Schwab. They have a lot of good, basic advice on their website as well. You can replicate the 3 fund portfolio easily at Schwab. They have passive mutual funds/ETF's at low expense ratios. They also offer Vanguard MF's and ETF's.

I have transferred an account from Vanguard to Schwab not long ago. Quite easy to do.

If you decide you don't want to invest yourself (like many of us on this forum), you can also call Schwab (or another broker's customer service number) to ask about their low fee options for portfolio management, etc.

You may also want to check out Allan Roth's website which has a lot of helpful investing advice (he posts on this forum sometimes as well.) He is a fee-only financial planner based in Colorado, I believe.

https://daretobedull.com/links-resources/

Also, you may also want to look for a fee-only planner in your area (search by zip code) at the Garrett Planning Network. This is one website I have heard positive things about (fee-only financial planners) who could assist you if you do not want to invest the funds yourself.

https://garrettplanningnetwork.com/
Last edited by JAZZISCOOL on Sun Nov 17, 2019 4:20 pm, edited 2 times in total.

Shallowpockets
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Re: Not retired at 71 [need SEP advice]

Post by Shallowpockets » Sun Nov 17, 2019 4:10 pm

You are still working at 71 and make some crazy good money. You wonder where to put this 100k.
Where is all your retirement money now? Can’t the 100k simply follow the past money?

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JoeRetire
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Re: Not retired at 71

Post by JoeRetire » Sun Nov 17, 2019 4:12 pm

Seas wrote:
Sun Nov 17, 2019 3:33 pm
Its just in a interest account,
I wanted advice on investing not sure how to say that another way

Are the advice those brokerage offer worth looking into or they pushing their products
My suggestion would be to pay for a few hours of time from a fee-only fiduciary financial adviser.
Don't be a lemming.

Topic Author
Seas
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Joined: Sun Nov 17, 2019 1:10 pm

Re: Not retired at 71 [need SEP advice]

Post by Seas » Sun Nov 17, 2019 4:15 pm

So at my age I suppose a fund with a target date of 2025 is what I should start looking at.

Bernard
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Re: Not retired at 71 [need SEP advice]

Post by Bernard » Sun Nov 17, 2019 4:19 pm

You have a skin problem. Big pimples, oozing. You are asking folks what medications and cosmetic surgeries they recommend, and how much all of that would cost. Some suggest special medications and doctors.
Then an older dude with skin like porcelain and a body like a god tells you that all you need to do is eat healthier, and your skin condition will disappear.

Same here.
MOST of us follow the most simple path of investing, with some variations at more advanced dates. You could put $100K or $1M into Vanguard's VTSAX index fund and 99% of us would tell you that this is a great move. Better yet, you'll never have to do another thing. No upkeep, nuttin' . . .

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ChowYunPhat
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Re: Not retired at 71 [need SEP advice]

Post by ChowYunPhat » Sun Nov 17, 2019 4:22 pm

Seas wrote:
Sun Nov 17, 2019 1:19 pm
Hi I'm not retired but self employed (but not working 9-5) regular income about $245K, next year and thereafter about $375K

I have SEP from last year started at Vanguard and it's just sitting there, I need to invest the max Sep this year, making my total about 100K+ in the Sep.

was thinking moving it to Schwab or TD etc to get some advice on how to get a reasonable return :moneybag

Where should I begin researching and with who :oops:
Seas, welcome to the forum and congrats on the self employment take...well done.

As to your questions, you would get much better advice if you provided more info => viewtopic.php?f=1&t=6212

Lots of people on the forum can provide excellent advice, many professionals in their own right, and could help out further if you also shared:
1. Is your salary earmarked for consumption, saving, investing, heirs or some combination?
2. What have you invested in already and what types of accounts (tax shielded vs. taxable)?
3. Spending or budget?
4. Caring for dependents?

Best of luck to you sir.
A wise man and his money are friends forever...

Topic Author
Seas
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Joined: Sun Nov 17, 2019 1:10 pm

Re: Not retired at 71 [need SEP advice]

Post by Seas » Sun Nov 17, 2019 4:46 pm

OK, sure
Emergency funds 25K
Debt mortgage 160K
Married joint
State: FL
Assets in stocks bonds 0
other assets: real estate and art 3M
I own two sub S Biz that income was stated above
I have 50K in Sep Ira now and and over 100K shortly
No dependents

donall
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Re: Not retired at 71 [need SEP advice]

Post by donall » Sun Nov 17, 2019 5:28 pm

Well, I would recommend starting Social Security for self and possibly spouse. For investing, I would take the excellent advice offered on this blog and just invest in the three fund portfolio. I think you will do a great job investing your money and enjoy reading the recommended materials.

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Mel Lindauer
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Re: Not retired at 71 [need SEP advice]

Post by Mel Lindauer » Sun Nov 17, 2019 6:06 pm

You might also consider contacting Boglehead author Rick Ferri who is a fee only advisor. Buy a couple of hours of his time. That may be all you need to get you on the right path.

Another thing that you might consider is the appropriate Vanguard Target Retirement or Life Strategy fund. These funds provide a nicely diversified set-it-and-forget-it portfolio in a single low-cost fund.
Best Regards - Mel | | Semper Fi

Shallowpockets
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Re: Not retired at 71 [need SEP advice]

Post by Shallowpockets » Sun Nov 17, 2019 6:25 pm

Seas wrote:
Sun Nov 17, 2019 4:46 pm
OK, sure
Emergency funds 25K
Debt mortgage 160K
Married joint
State: FL
Assets in stocks bonds 0
other assets: real estate and art 3M
I own two sub S Biz that income was stated above
I have 50K in Sep Ira now and and over 100K shortly
No dependents
How’s that real estate and art working? At your age and income I would have thought you would be real set to retire. None of that above is in line with someone saving for retirement and making the money you do. Did you only recently begin to make that income? Or have you been putting it all into real estate and art over the years?
If your spending is commensurate with your income then your 25k emergency fund is perhaps not enough.
I think the advice given here is what you should consider. Make it easy on yourself. 3 funds.
Pardon me, but I am very curious about this.

Outer Marker
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Re: Not retired at 71 [need SEP advice]

Post by Outer Marker » Sun Nov 17, 2019 8:34 pm

Seas wrote:
Sun Nov 17, 2019 4:15 pm
So at my age I suppose a fund with a target date of 2025 is what I should start looking at.
That's a very reasonable place to start. And pay off the mortgage ASAP out of current income.

I would also highly recommend you spend a weekend reading "The Investor's Manifesto" by Bill Bernstein. Its an easy, accessible, and actually fun read. After that, you'll know more than 90% of advisors out there.

Unless you're thinking about liquidating the art and RE holdings, it doesn't sound like you're dealing with a whole lot of investable asset at the outset, so not sure its worth paying for advice. A target fund for your retirement accounts would likely serve you quite well. We tend to be partial to Vanguard. And they will do a plan for you at reasonable cost if you need hand holding.

The financial planning advice you get here for free is likely to be better than most advisors.

LiveFor30
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Re: Not retired at 71 [need SEP advice]

Post by LiveFor30 » Sun Nov 17, 2019 8:47 pm

Shallowpockets wrote:
Sun Nov 17, 2019 6:25 pm
Seas wrote:
Sun Nov 17, 2019 4:46 pm
OK, sure
Emergency funds 25K
Debt mortgage 160K
Married joint
State: FL
Assets in stocks bonds 0
other assets: real estate and art 3M
I own two sub S Biz that income was stated above
I have 50K in Sep Ira now and and over 100K shortly
No dependents
How’s that real estate and art working? At your age and income I would have thought you would be real set to retire. None of that above is in line with someone saving for retirement and making the money you do. Did you only recently begin to make that income? Or have you been putting it all into real estate and art over the years?
If your spending is commensurate with your income then your 25k emergency fund is perhaps not enough.
I think the advice given here is what you should consider. Make it easy on yourself. 3 funds.
Pardon me, but I am very curious about this.
I too am very curious as to the complete story. With that kind of income, and at your age, I would think you would have a few mil squirreled away. Please fill us in on the details so posters here can understand and offer some more specific help.

Topic Author
Seas
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Joined: Sun Nov 17, 2019 1:10 pm

Re: Not retired at 71 [need SEP advice]

Post by Seas » Mon Nov 18, 2019 6:16 am

I don't want to retire it's that simple.

To do what, play golf more than I do now, I intend to stay active not watch TV during the day.

Not paying off that small mortgage, cash is King
I have no mortgages on my two other homes

I'm about to build a commercial building the loan is in place for 700K, I'll rent it the income is forecast at 165K after expenses.

I'll continue to buy art work, most of it appreciates way better than the returns in these funds.

I will research all your suggestions can't let all that money just sit and very much appreciate your feedback.

Outer Marker
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Re: Not retired at 71 [need SEP advice]

Post by Outer Marker » Mon Nov 18, 2019 8:21 am

Seas wrote:
Mon Nov 18, 2019 6:16 am
I don't want to retire it's that simple.

To do what, play golf more than I do now, I intend to stay active not watch TV during the day.

Not paying off that small mortgage, cash is King
I have no mortgages on my two other homes

I'm about to build a commercial building the loan is in place for 700K, I'll rent it the income is forecast at 165K after expenses.

I'll continue to buy art work, most of it appreciates way better than the returns in these funds.

I will research all your suggestions can't let all that money just sit and very much appreciate your feedback.
No need to retire. I was on track to retire by 50, and due to a strange set of circumstances found myself out of work for several years before I intended and did not like it. Back on the beat and it feels good. I'm now planning on working into my mid 60's. Plenty of things I can do after that which don't involve TV or Golf. Teaching flying, long distance sailing, skiing, travel, scuba diving . . .

Although I own six figures in original art, I do not consider it part of my investment portfolio. It *might* be worth that on paper, but its an illiquid asset, and you or may not have a buyer for it when you need to draw on the money. No one was buying art in 2008/2009.

If you're going to keep working until you die and have an ultra long time horizon and high risk tolerance, you can go all the way up to 100% stocks. I wouldn't recommend it, but its the highest expected rate of return. Pick whatever mix you like of of Vanguard Total Stock Market, Total International, and perhaps REITS and let it ride. (Maybe something like 75/15/10) I think it would be more prudent to hold at least 30% bonds, so you just pick a target fund with about that level of risk and be done with it. At least as to your tax-advantaged accounts.

If you have the business acumen and track record to pull off projects like your commercial building, doing that may be a better use of your money than paying off the mortgage. But, if you're not doing that, or investing in all equites, no bond fund you can buy is going to give you a guaranteed rate of return equal to your mortgage. If you pay it off, you can get a home equity line and access the money when and if you need it.

You will be able to make better and more informed choices if you do a bit of reading - either the Investor's Manifesto or Bogleheads Guide to Investing. Or both.

Best of luck on your project and investments!

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JoeRetire
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Re: Not retired at 71 [need SEP advice]

Post by JoeRetire » Mon Nov 18, 2019 9:36 am

Seas wrote:
Mon Nov 18, 2019 6:16 am
I don't want to retire it's that simple.
Good for you!

It sounds like you are financially able to do whatever you want. If that means working, that's great!
Don't be a lemming.

Topic Author
Seas
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Joined: Sun Nov 17, 2019 1:10 pm

Re: Not retired at 71 [need SEP advice]

Post by Seas » Mon Nov 18, 2019 9:59 am

OK digested a lot reading materiel, getting a pretax year end meet with my Cpa soon.

One question bothering me,
to get into these type investments at this high market level am I making a mistake not waiting for a dip or correction?

Outer Marker
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Re: Not retired at 71 [need SEP advice]

Post by Outer Marker » Mon Nov 18, 2019 10:20 am

Seas wrote:
Mon Nov 18, 2019 9:59 am
One question bothering me,
to get into these type investments at this high market level am I making a mistake not waiting for a dip or correction?
No one knows. If you wait for a correction, you might miss out on another 5 years of gains, or you might be able to buy in at a bargain.

Holding a diverse portfolio, with, say, 60% equities 40% in Treasuries, allows you to rebalance if that happens. Treasuries will rise as stocks fall (generially speaking) so you can rebalance into stocks when they are cheaper.

One option is to dollar-cost average into your position, investing your money a chunk at a time over the next 12 months. Its lower expected return, but emotionally easier for some folks.

Topic Author
Seas
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Re: Not retired at 71 [need SEP advice]

Post by Seas » Sat Nov 23, 2019 9:24 am

Just a follow up.

After digesting all the info that I can both here & online I setup a financial planning tel conference with Vanguard on the 5th, it's only few :moneybag and my better half feels better about having that opinion.

This will be a few days after we meet with our Cpa on year end planning.

Your thoughts on what we should cover/ask on the call (they said it's usually about 45min)

Like to create a punch list of :?: ahead of time.

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