Retirement Planning

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  • I have an investment advisor who also does retirement plans but I'd like to talk to someone who is tax centric and can guide me through the best ways to manage my withdrawals with medicare costs in mind, etc.  Right now, I feel that I can make mistakes in withdrawal amounts that can put me in a higher tax bracket and a higher medicare cost bracket.  I want someone who proactively plans withdrawals and spending to minimize taxes and costs  Does anyone have a recommendation for someone who knows this aspect of retirement?  Thanks in advance for any guidance you can provide.

    Hello there -- we have just the kind of financial planner/retirement advisor you're seeking: https://elmwoodwealth.com/ Our family has been with Elmwood Wealth Management (510-858-2723) for over five years now, and our in-laws have also come on board. What stands out about the team at Elmwood Wealth is that 1) they operate as a team -- we work closely with Bob, Shannon and Julie, and don't feel "passed along" to junior staff. The principals have even answered my panicked emails late at night at tax and year-end deadlines, though we're always working to minimize fire drills. 2) Tax brackets and implications have been a deep part of all conversations, whether it's real estate, the markets, ROTH contributions or other asset situations like estate planning. And they're helpful at tax time, making sure our CPA has what they need etc. 3) I enjoy their low-key "bedside manner" too. They're the opposite of a type-A, pressured environment. Their fees are fair and clear, and well worth it for our portfolio health and peace of mind. And I always enjoy our meetings with them. 

  • Recently met with a financial advisor at Fidelity my 401k (from a previous employers) is.  She ran a couple simulations that showed if we kept our retirement money only in a 401k we would run out of $ when I was in my early 90's.  Whereas, if we put assets from my 401k into a fixed annuity, we would not run out of $ during retirement and there would be a small amount of assets (from 401k) that our heirs would inherit (these simulations assuming below market returns and both myself and my spouse would live to late 90's).  I've done research online into the pros and cons of fixed annuities but wondered if anyone who has a fixed annuity can chime in whether they are happy with their decision to obtain one and if they had to do it again would they make the same decision.  I'm still 10ish years from retirement.

    Short answer is yes I have one and I’m happy with my decision. 
    Long answer-there were so many things that weighed into my decision. What are my streamed of income for retirement (401k, ROTH IRA, SSA)? What if right when I fully retire, the market changes and I lose a fair amount from my 401k/ROTH IRA? (Like what happened to the folks in 2008 or 2020 after COVID hit?) Do I want a guaranteed income (mine has inflation adjustments every 2-3 years)? I did NOT use all of my 401k (from a rollover, when I left a previous employer), just a portion. And I also have a good understanding of my emotional capacity to tolerate market risk. If I didn’t have someone who walked me through this last point, I would not have fully understand where my anxiety about running out of money was coming from. 
    Basically, FIA work for some folks and aren’t necessary for others. 

  • I need help figuring out if I am financially secure enough to retire soon. I will have income from a pension, social security and some savings. But I am not sure how to estimate how long this will last. In addition, I am getting a larger inheritance from my parents in Germany. I believe, there are no taxes due on this, but I would also like to discuss any potential tax effects and help with investing the money from the inheritance.

    I would like to work with a fee-based financial advisor. I am not sure if one professional would have the expertise for all these questions, or if I need to work with multiple advisors.

    What good questions! Note that you are looking for three specialties: financial planning, tax advisor, financial advisor. I've been putting this together for myself over the past year or so in preparation for retirement. I have yet to find one person or entity that does all three in-house, certainly not fee-based. That said, I've found solid solutions for each.

    I recommend Sarah Behr at Simplify Financial (http://simplifyfinancial.com) for fee-based financial planning. She's in San Francisco and meets clients over Zoom during this time of pandemic. Sarah is straight-forward and thorough in her approach. Sarah helped me assess my overall financial picture in preparation for retirement and made recommendations for adjustments to my investment portfolio (self-managed, mostly in mutual funds). 

    Sarah is not a tax specialist, nor would I expect any financial planner to be, although she does know a lot about taxation issues related to investments. She can refer you to a tax specialist or coordinate with your tax preparer if you are already working with one. 

    As for help with investing the funds, I don't know of any financial advisors that offer fee-based service; all that I am aware of charge a percentage of assets managed. That said, you may not need to pay for this service if you are willing and able to self-manage with a little help. Consider looking into any of the major online investing platforms—Vanguard, Schwab, Fidelity, TM Ameritrade, etc. They all have automated programs where you can plug in your assets, goals, etc. and your assets will be invested accordingly. Schwab has free in-person support in their local branches.

    Search online to educate yourself before talking with professionals. Good places to start are https://www.wisebread.com and https://www.forbes.com/advisor/.

    Good luck in moving toward a stable retirement.

    Mary Robinson is wonderful...she's an effective listener, is patient, and very thorough.  She's on the East Coast and we had several virtual meetings to get my finances in order.

    202.659.7432
    mrobinson32 [at] ml.com (mrobinson32[at]ml[dot]com)

    Mary Robinson - Merrill Lynch Wealth Management

  • Hi!

    I am looking for a recommendation for a flat fee financial advisor. Someone who can easily walk us through some planning and help us figure out our retirement with our limited resources. We don’t have a lot to work with and are also interested in learning about low index funds. We are in our early 40’s ,  2 young children, a school teacher and an X-ray tech. We now live on the Peninsula but are willing to drive to the East Bay . Thanks in advance for your recommendation and or advice!

    Highly highly recommend Sean Burgess for this: https://www.burgessfinancial.com/

    We've been working with him for a few years. He's flat-fee, fiduciary and very keen on index funds. We really like him, and though he's now based in Portland, all the visits are remote!

    I highly recommend taking this short course at your own pace, especially if you're in need of simple retirement planning (401k, 403b, Roth IRA) and already understand that index funds are the way to go. I follow Jeremy on social media and his course is cheap and super helpful: https://www.personalfinanceclub.com There's also a ton of free resources too. This is the best $80 you can spend.

  • Roth IRA for a Teen

    Feb 18, 2021

    My teenage daughter earns occasional money from dog sitting. I'm looking to deposit an equal amount into a Roth IRA for her. Looking for some advice on where I could do so without a minimum balance or high fees. My first choice would be Vanguard but they have a $1,000 minimum balance. Once we get to $1k, I plan to transfer the balance to a Vanguard account. Until then, what's a good option? So far we are only starting out with $75 and not sure when the next dog sitting/money earning opportunity would be, but will probably get a couple more sometime this year. Thanks for any advice!

    Nerd Wallet has a list of Roth IRA providers that have $0 minimum balances. Usually you have to commit to a regular monthly ACH deposit to qualify, but take a look and see if any of these work for you. https://www.nerdwallet.com/best/investing/roth-ira-accounts

  • I'm mid-40's, single, no kids, self employed.1) what's an "acceptable" fee to pay a company like Vanguard or Fidelity etc to help manage your retirement investments (SEP/ROTH)? I know this kind of service requires a % fee, but what's considered "average" or acceptable?2) I'd like to find a Financial Advisor or Planner this group highly recommends. I want to learn more about managing my retirement investments, but need some guidance and education initially. (I've been reading a lot online and in books, but having a human to guide and ask questions to would be helpful). I don't want to be sold into specific funds the advisor is affiliated with. I just want guidance so I can eventually mange them myself and reap better returns. My previous investments were lacking in any strategy and I have a lot of catch up I need to do. TIA

    Hi,

    I'm also in my mid-40s and self employed and had many of the same questions as you a few months ago.  I found a very good financial planner named Chris Foley who works for Edward Jones.  I was very skeptical about working with a financial planner because I was worried about fees, but Chris will look at your existing portfolio in detail and make recommendations personalized to your situation and goals, including different options for investments and fees, so that you end up something that you're comfortable will and better prepared for the future.  Note: you don't have to do a % fee approach.... there are other options.  Message me if you're interested and I'll forward his contact information. 

    We work with the financial planning firm Reynolds and Reynolds in Atlanta and have all our meetings remotely. We specifically work with Nick Wagner. He’s great, and it’s cheaper work with someone who lives in a more affordable area of the country. Highly recommend.

    I feel very passionately about this topic because I think that many financial advisors do not have their client's best interest at stake. I used to have a financial advisor for my family's retirement accounts, to whom I paid an annual fee of about 1.25% of assets, which is fairly standard in the industry. He put us into various funds of his choosing. About seven years ago I was reviewing the periodic reports he would send us, and I was shocked and angry to see that our portfolio was not beating the major indices, and yet we were paying a 1.25% annual fee and the managed funds we were in had high annual expenses! I would have been better off putting my money in the S&P500! About this time I was reading an article about a new company called RebalanceIRA (now called Rebalance360) whose mission it was to help regular people retire with more money by offering an investment strategy at a low cost. They help you identify your risk tolerance and then allocate your money into ten asset classes. They use index funds and ETFs, which have minimal fees. Then they rebalance your portfolio every quarter, bringing it back to your target allocation. They charge 0.7%. That half a percentage savings in fees, plus not paying the costs of a managed fund, make a huge difference in your return over time. They have an account minimum of $100K (I think). If you are below that level or want to do things yourself, then I would recommend Vanguard, which offers low fee funds such as their Target Retirement funds. Needless to say, I fired my financial advisor and moved my accounts to Rebalance, and I have never looked back. Their website has lots of helpful info: rebalance360.com   Good luck!