Is there anything else I can do?

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Newbogel
Posts: 19
Joined: Sat Jan 20, 2018 10:21 am

Is there anything else I can do?

Post by Newbogel » Sat Jan 20, 2018 10:37 am

Hello. I am wondering if I am missing anything with my retirement strategy.
Here is my current status. I am 57 with an annual salary of 190k
Company 410k. At the moment I have 770k. I contribute to the max including catchup.
Retirement plan. My company has a cash balance pension plan where I have 220k
Annuity. 65k
HSBC managed portfolio worth 314k.
All in all close to 1.4 mil.
One thing I thought might be possible would be to make a ira for my wife who doesn’t work. Should I really have the HSBC managed account?

Nate79
Posts: 3483
Joined: Thu Aug 11, 2016 6:24 pm
Location: Portland, OR

Re: Is there anything else I can do?

Post by Nate79 » Sat Jan 20, 2018 10:52 am

I would suggest you post the details of your portfolio, especially the managed account.

Newbogel
Posts: 19
Joined: Sat Jan 20, 2018 10:21 am

Re: Is there anything else I can do?

Post by Newbogel » Sat Jan 20, 2018 11:12 am

The HSBC portfolio is made up of the following:
FRANKLIN MUTUAL GLOBAL DISCOVERY FUND CLASS=36K
MFS GROWTH FUND CLASS A Quantity=46K
LORD ABBETT INCOME FUND CLASS A =43K
LORD ABBETT SHORT DURATION INCOME FUND CLASS A =51K
CLEARBRIDGE SMALL CAP GROWTH FUND CLASS A =33K
FIDELITY ADVISOR MATERIALS FUND CLASS A =33K
BLACKROCK EQUITY DIVIDEND FUND CL A = 38K
INVESCO ASIA PACIFIC GROWTH FUND CLASS A = 32K.

Newbogel
Posts: 19
Joined: Sat Jan 20, 2018 10:21 am

Re: Is there anything else I can do?

Post by Newbogel » Sat Jan 20, 2018 11:22 am

My 410K is managed by Transamerica.
More or less 50% is in the following two funds.
Vanguard Extended Market Idx
Neuberger Berman Genesis R6

And 50% in the Target retirement 2025 fund.

abonder
Posts: 225
Joined: Sat Nov 03, 2012 10:52 am

Re: Is there anything else I can do?

Post by abonder » Sat Jan 20, 2018 11:26 am

You’ll get more help if you post in the format illustrated by this thread: viewtopic.php?f=1&t=6212

It sounds like you’re doing a lot of things well. Maxing tax-deferred, good income. It will be easier to provide guidance if the additional information is provided along with goals (retiring, at what age, goal income, etc).

JW-Retired
Posts: 6911
Joined: Sun Dec 16, 2007 12:25 pm

Re: Is there anything else I can do?

Post by JW-Retired » Sat Jan 20, 2018 11:26 am

Newbogel wrote:
Sat Jan 20, 2018 10:37 am
Hello. I am wondering if I am missing anything with my retirement strategy.
Here is my current status. I am 57 with an annual salary of 190k
Company 410k. At the moment I have 770k. I contribute to the max including catchup.

One thing I thought might be possible would be to make a ira for my wife who doesn’t work. Should I really have the HSBC managed account?
One obvious thing is the IRA for your wife who doesn't work. If that $190k salary is gross before your 401k contributions you could probably take the full tax deduction for it too. She is over 50 so that would be a $6500 contribution.

https://www.irs.gov/retirement-plans/20 ... an-at-work

I'll bet you could do a lot better than a HSBC managed account too...... but I don't have anything in particular to back that up except Boglehead instinct, and all those class A funds you listed. Class A means they are front loaded. :oops:

Welcome to the forum!
JW
Retired at Last

Nate79
Posts: 3483
Joined: Thu Aug 11, 2016 6:24 pm
Location: Portland, OR

Re: Is there anything else I can do?

Post by Nate79 » Sat Jan 20, 2018 2:27 pm

Newbogel wrote:
Sat Jan 20, 2018 11:12 am
The HSBC portfolio is made up of the following:
FRANKLIN MUTUAL GLOBAL DISCOVERY FUND CLASS=36K
MFS GROWTH FUND CLASS A Quantity=46K
LORD ABBETT INCOME FUND CLASS A =43K
LORD ABBETT SHORT DURATION INCOME FUND CLASS A =51K
CLEARBRIDGE SMALL CAP GROWTH FUND CLASS A =33K
FIDELITY ADVISOR MATERIALS FUND CLASS A =33K
BLACKROCK EQUITY DIVIDEND FUND CL A = 38K
INVESCO ASIA PACIFIC GROWTH FUND CLASS A = 32K.
Even a 5 minute search shows you are in some pretty high expense funds that have been making your advisor' s boat payment. Pretty obvious your advisor isn't a fiduciary.

runner540
Posts: 738
Joined: Sun Feb 26, 2017 5:43 pm

Re: Is there anything else I can do?

Post by runner540 » Sat Jan 20, 2018 2:31 pm

Spousal IRA. And save using tax efficient funds in a taxable account.

How much income will you need per year from your savings? When do you plan to retire?

Newbogel
Posts: 19
Joined: Sat Jan 20, 2018 10:21 am

Re: Is there anything else I can do?

Post by Newbogel » Sat Jan 20, 2018 9:18 pm

Nate79 wrote:
Sat Jan 20, 2018 2:27 pm
Newbogel wrote:
Sat Jan 20, 2018 11:12 am
The HSBC portfolio is made up of the following:
FRANKLIN MUTUAL GLOBAL DISCOVERY FUND CLASS=36K
MFS GROWTH FUND CLASS A Quantity=46K
LORD ABBETT INCOME FUND CLASS A =43K
LORD ABBETT SHORT DURATION INCOME FUND CLASS A =51K
CLEARBRIDGE SMALL CAP GROWTH FUND CLASS A =33K
FIDELITY ADVISOR MATERIALS FUND CLASS A =33K
BLACKROCK EQUITY DIVIDEND FUND CL A = 38K
INVESCO ASIA PACIFIC GROWTH FUND CLASS A = 32K.
Even a 5 minute search shows you are in some pretty high expense funds that have been making your advisor' s boat payment. Pretty obvious your advisor isn't a fiduciary.
Thanks for confirming my thoughts. I am going to call sell and reinvest per what I have been reading. Vanguard index or fidelity. I do a bit more research but I am now convinced I have to do this.

Beehave
Posts: 348
Joined: Mon Jun 19, 2017 12:46 pm

Re: Is there anything else I can do?

Post by Beehave » Sat Jan 20, 2018 9:49 pm

Hard to tell your stock - to - bond/cash allocation ratio. I see a cash balance fund of 220K (growing at maybe $19k per annum plus interest?) and a bond component from a 2025 fund. If that's all the cash and bonds you have this seems stock-heavy and you might just want to make sure about (a) having a stock to cash/bond ratio you are comfortable with and (b) that you have an emergency reserve cash fund that is ample.

I agree with the idea others have expressed of using index funds (especially simple total US and total world ex-US indexes) and wish you the best.

Newbogel
Posts: 19
Joined: Sat Jan 20, 2018 10:21 am

Re: Is there anything else I can do?

Post by Newbogel » Mon Feb 12, 2018 11:39 pm

I recently sold the brokerage fund and got out of HSBC. I have done the three fund strategy and now have a total AA of around 60-40. The great thing is that I sold right at latest stock market high and brought in the middle of last week, more or less at the last weeks low. Lucky me.
Thanks for your advice!!!

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