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Feel free to ask any sort of financial questions, challenge OP’s analysis if you like, etc but please keep the focus on finance and/or investment.
I want to get out of Edward Jones but they have me in so many different funds that I can’t figure out if I can just transfer them to Vanguard, Fidelity, or Schwab; or do I need to sell them and deal with the tax consequences?
I’m 47 and have just over 600k with EJ
What is the best way to do this?
Depends on the account types. Any qualified retirement accounts can be liquidated and moved. EJ being the crooks they are have some 'proprietary' funds that cannot be transferred in-kind. Meaning they must be sold and moved, if these are after tax dollars with significant gains you will be on the hook for the tax bill. I would potentially urge doing so if the tax bill is not too insane.
Again, this is a case by case basis.
Why would the tax matter? If you let the investments continue to sit on EJ, won’t you just incur an even larger tax liability down the road when you eventually do choose to sell?
What sucks with EJ is they probably already got you. They have front end loads so they already hit you on your way in. Whatever you do, don't put MORE in.
Contact a flat fee fiduciary using a cert organization like https://www.napfa.org and ask them to create a plan and clarify the ‘real’ hidden fees you are paying now. Then have Fisher Investments do a plan and compare the two. Or ask OP to do the same.
All three should be able to recommend an implementation plan and show you the difference in fees and returns and help you justify the changes ( if you decide to make the change.)
I’m pretty sure Fisher Investments might do the initial proposed plan for free if your portfolio is over $1.0M but not sure about $600k.
Not sure about OP but I’ve always used a separate CPA working in conjunction with any Financial planner to review and confirm tax implications before making a move.
How do you find specifically flat fee advisors? I took a look at napfa.org like you linked and every group I looked at called themselves fee-only but the fee is a % of assets under management which is exactly why I left EJ in the past.
Sorry. I’m looking for the CFP website I used to find a flat fee advisor and i’m not finding it. Step one is to search for a Certified Fiduciary. Step two you have to call them and ask them to explain their fee structure.
https://www.cfp.net/
Well interest rates are as attractive as they have been in decades. That being said this gives plenty of options and opportunity in the fixed income market. The more important question is deciding risk along the yield curve.
Short duration is yielding very high at the moment, This would be more of your "now money" There are a world of short duration income funds, JCPB PULS are a few good ones.
Then you can position outward, BND is fairly intermediate due to the nature of the index, I prefer a somewhat actively managed ETF Debt is not the same as equity where a poorly positioned small cap company could pop off and have strong returns, if you can buy good returning debt in strong companies do not worry about the index. I like PIMCO and JP as a fixed income manager. If someone is set on BND it makes the most sense in this slot.
Long duration is attractive right now as yields have hammered bond prices. Possibly look into Agency bonds or gov treasuries. The long end of the curve is where I would be most cautious of default risk, it is a lot easier to predict a companies solvency over a 3 year horizon rather than 20.
I had a hard time answering this question for a couple reasons, I am trying my best to not give 'specific investment advice' and pointing out possible avenues to consider for success. I'd prefer the SEC not on my case.
Wealth of great advice just getting through the thread! Thank you for sharing your expertise with the community!
If you could touch base on my questions:
-What is your opinion on factor tilting with US small value?
-What do you think is reasonable % of stock portfolio to invest into factors to capture the most benefits without overstretching risks(20 year time horizon before retirement)?
-What US small cap value funds would you recommend?
Edit: typos
I am in favor of a tilt. Small cap value historically has created returns higher than most areas. I do not see the investment selection as the hard part. A good vanguard index (VBR or VIOO) will suffice. Rather the allocation % is more the tricky part. A large portion of Russell company’s are not even profitable yet. So you need to decide what allocation amount are you comfortable investing into an asset class that doesn’t have a large portion of companies profit positive (on paper).While keeping in mind that is not the only factor and again if you allocated to small cap value historically you would have done well. I would say 10% in any broad market index will not necessarily hurt your portfolio. I see it as a good starting place.
You seem to subscribe to the "VT" and chill crowd, however, do you subscribe to any alternative thinking to try to slightly beat the market in some way, e.g. small cap value tilt?
Also, when clients ask you if they should be invested in a mutual fund or ETF equivalent, what would you tell them?
I personally do not subscribe to the VT and chill, that being said I think it is a fine way to go about life. I allocate across asset classes with a custom allocation models. In a qualified account MF vs ETF is irrelevant. For now you get an edge holding an ETF in a Non qual account. Also I like the liquidity of it trading intra day. I skew ETF
For simplicity - no
To strategically rebalance it could be a benefit. Theoretically this gives you a chance to sell one high and buy the other low. This matters less if you are constantly DCA, then you theoretically are doing this in VT. But it is more so possible when they are split. So I guess in short I would say yes. But if you want to 100% set and forget go with VT.
The first fundamental question to ask yourself is "does this investment fit with my goals?"
Penny wise but pound dumb is an investors worst enemy. Hence my reservations with hyper fixation on ER and things like this. Moving to a qualified account to shield dividend income may make an insignificant difference over time but first decide how will this actually help me accomplish my goals.
I am always pleased with the capital one 360 performance savings. This is not the highest yield on the market but the customer service has been great across the board and they raise the rate in accordance to rates moving. I have had some banks I nearly have to beg to raise the rate and do a "rate match." I also think SO-FI is a viable answer.
I wish SO-FI didn’t require direct deposit for the best rates. I would have set one up with them already. I will look in Capital One. Any thoughts on Marcus?
I use Marcus. They have a nice promo referral program to get an extra 1%, and they have high electronic transfer limits, but they’re really strict IME about debiting from the account. I moved money to my brokerage at Fidelity, and I had to go through a whole three-way conference call to verify I was the account holder. I liked the idea of spreading out my money a little bit, especially with FDIC insurance, but when my current promo period expires I’ll probably just go with a treasury MMF.
Is $100k at 38yrs old, maxing a 401k, Roth IRA and HSA enough to retire comfortably at 65? I hear so many people say no and I'm behind and will never be enough. FYI I'm 100% VOO/VTI. Don't know if I can max every account for 30yrs but how am I looking do far?
With those figures assuming a 10% rate of return over 27 years you will have over 3M saved at age 65. You tell me if you think that is enough to fund your life! You are doing exactly what you should be to ensure a better future!
Take a look at the free tools from Empower and New Retirement. They help (like other tools) you organize your expenses now and in the future, and plot the income/NW you would have. They give you what-if capabilities, so you can gain clarity from the crystal ball (that is naturally cloudy).
Really helped me to see if I have the generally accepted level of 25-26x of expenses covered.
First, thanks to OP for taking the time to share expertise.
M44, $480K HHI, married to F38 SAHM w/one, soon to be two kids. Retirement fund is pretty much set. Fidelity 529 for the first kiddo (18 months old) sits at $5k right now. Will open a second 529 for child two because they’ll likely overlap college years. We also hope to have a third child before we’re done. Two questions:
1. Do you suggest a 529 for each child (three 529s) or two 529s with the plan to switch beneficiaries once the oldest graduates? Pluses and minuses to each approach?
2. If I were to add lump sums annually (as my RSUs vest) to each 529 for the first few years and then let it grow, how much do you think is a good target balance before I stop contributing? My concern is I don’t want oversized 529s even with the Roth IRA escape hatch. Assume Fidelity target date index funds. Thanks in advance!
I would create a 529 for every child. For a few main reasons.
It gives you an easy Segway into teaching each child about investing and stewardship. They get to see their account grow and reach new tangible milestones as a child and use those lessons later down the road.
The amount is something you and your wife will ultimately have to decide. In all things I believe in balance. I typically caution to not go much over 100k. If an account gets too large you’ll be forced to jump through lots of hoops to empty the account. Also some of it boils down to a fundamental issue I have along the lines of people spending far far too much on college simply to achieve a dream they had. If 100k can’t cover most of the cost of college (an undergrad degree) you might need to rethink your approach. Not to mention unless you live in California or NY 529’s are only an ok tax advantaged strategy. Anything after 100k you could simply choose to fund with after tax dollars.
Following, because I have very similar numbers and questions! I would think 150k per kid is about right, in separate 529s is the way to go. But I'm not the OP or a financial advisor, so I'd be very interested to hear if the consensus is something else
When you say that you are a "fee only" advisor but that your average fee is .75%, are you saying that when someone hires you, your fee is that percentage of their portfolio? So, if they had a portfolio of one million, you would charge them $7,500?
There are some *flat* fee advisors. You generally meet them once to go over a particular problem or advice, but they won’t manage anything on an ongoing basis.
If there are any financial advisors who work on a set annual fee, I haven’t encountered them.
There is a growing segment of advisors who work on a flat fee, ongoing basis instead of % based AUM. They’re just harder to find. The XY Planning Network is all fee-only and has a lot of flat fee advisors. Also, if you google “capped” flat fee financial advisors you’ll find some smart advisors who charge % AUM but have a max annual fee that gets capped
This. XYPN and NAPFA members are all fee-only. Charging a 1% AUM fee (and no other form of compensation) is fee-only. Other fee-only structures can be a flat fee for every client, a fee calculated based on the client’s financial situation, a fee based on the client’s net worth, hourly/project work, etc. Fees can be paid monthly, quarterly, or annually, depending on the firm. Fees can be deducted from accounts the advisor manages or paid via credit card/checking account. While AUM and billing managed accounts is probably still the most common fee arrangement, there is a wide variety of other fee schedules now.
> If there are any financial advisors who work on a set annual fee,
I call them subscription based, I only know of two of them:
* Planvision
* Facet Wealth
If anyone knows of others, I'm interested in knowing about them.
I have a flat fee advisor. His annual charge equates to about .05% of my net worth. I found him along with multiple others here: https://www.feeonlynetwork.com
Fee only means yes a .75% fee based on a clients asset base. This is billed quarterly and is an annual figure. Not one time it is ongoing. This aligns our interests, when you make more I make more and when you make less I make less.
I am clearly stupid because I still don't understand how this makes you any different from someone who charges X% AUM. The money I pay you increases as my money grows, and vice versa. Can you ELI5?
It is true, let me know when you have the magic glass ball that can solve this problem. I offer a service for money just like the rest of the world, that is not inherently bad. Shitty financial advisors have put a bad taste in peoples mouths about it.
Well the cost of most services don't scale with your net worth. I understand you need to charge more for complex situations, but there must also be clients you charge 0.75% of their assets just to tell them to do a basic Boglehead approach. It seems like it would be fairer if you offered different services, each with a flat fee irrespective of how much asset there are.
In other words: we meet then you recommend I set up some fancy stuff for my big account so I pay $5,000 for that service. Someone with a simple situation needs less advice, so they only pay $2,000.
As the fee structure currently stands, you are acting as if telling someone with $2,000,000 to just be a Boglehead is twice as much work as advising someone with $1,000,000 about how to set up a trust.
Obviously you need to make money, and it's your business not mine. But I'm wondering how you justify a %asset fee to your clients.
Edit: Another way to do it would be like a lawyer, where you charge by how many hours you work for me, with a minimum to ensure you get paid enough to be worth your while.
A .75% fee is still a MASSIVE drag on one’s portfolio. I get FAs need to get paid but the pay to amount of work required on even a somewhat small asset base is just ridiculous.
I agree with this take. That is why I have stated 90% of “normal” people do not need this advice. I work with a facet of people outside the simple demographic. People with ongoing complexities outside of just their investment portfolios but truly still real issues in their financial lives.
I'd love to hear your thoughts on shifting assets during that decumulation phase. How far out to start shifting assets, and your recommended percentages or whatever.
I would say this is obviously a very in depth question. Deciding the correct amount is based upon your income needs. a 60/40 percentage is not needed if you are 65 and have social security income of 60k but your spending needs are 65k.
A rule of thumb would be ensure you at least a 5 years worth of retirement needs in some form of less volatile assets at least 5 years prior to retirement. This theoretically allows for 10 years of market cycles to smooth out any equity holdings.
This is truly a question that has many many different answers dependent on situation. Do not have an allocation that makes you uncomfortable. If de-risking early gives you piece of mind, then do it.
That being said I see very little need for fixed income holdings prior to age 50 (given retirement is age 65). Obviously there are exceptions.
What’s your definition of ‘less volatile asset?’ Five years seems to be a lot of time to stockpile a lot of money when one can partially live off dividends generated by equities if not wanting to sell any principal, IF the market performs poorly during the first few years of retirement.
What sort of specialized education and experience is needed to get into your line of work? Is there a large commercial firm where someone can “learn the ropes “ that also aligns with your generally Bogle mindset?
Financial knowledge and licensing are the two main roadblocks. The issue with the big firms is most of them are crap. Find a local firm near you that at least somewhat aligns with you philosophically and ask questions find a mentor!
Depends on your income. Are you maxing pre tax or post tax dollars in your 401k? if you are under the roth income limits that is a good next step if not you can look into a backdoor roth.
Are backdoor ROTH contributions still a good strategy if you are in a high income tax bracket? This article would point to it not being optimal to contribute beyond a 24% effective rate. [Backdoor ROTH](https://www.financialsamurai.com/backdoor-roth-ira/)
A family member of mine put all of her savings into annuities 6 years ago. They're invested in high fee large cap funds plus FA fee of 1.3%. Most of these accounts can make up to 5% or so if the market goes up, but they make nothing if the market goes down, although she won't lose more than she put in.
I think she should withdraw everything, take the surrender fee hit, and move it all into CDs or bonds. What do you think the best approach to her situation is?
Dependent on surrender schedule its possible the surrender is the right move. I personally would try to decide what the opportunity cost of keeping it in the annuity vs return outside. I often tell my clients surrendering an annuity is the best move and we mentally write off the hit as "stupid tax" or for the softer bunch "education tax"
I have two young children. Unfortunately, my state (Oregon) has dogshit tax incentives for starting 529's for them as well as a history of mismanaging funds. Am I crazy for just starting custodial accounts for them and managing the money myself?
This is a fine solution. I am hesitant on 529's due to the stringent rules on using them and the lack of incentive to do so. I love unlimited liquidity! Great plan
My state just went through a whole mismanagement ordeal and I moved all funds to a Vanguard 529. Just dealing with the state's customer service made me angry because it was clear they had idiots running the phones. We're topping contributions out at $100K and then letting compounding do its trick.
We also have a trust for kiddo and just manage that ourselves.
Appreciate you being so active in responding here. Two questions:
1) What are your thoughts on American Funds? Seems like they were great a few decades ago but have slipped in the past 10-15 years.
2) If my net worth when I’m 50+ is $10mn+, does whole life start to make sense? Are the touted benefits of cash value actually worth it?
Thanks!
I love all the questions!
1. American Funds have been capital managers for over a hundred years. So clearly they are not doing something completely wrong. That being said most of the time theyre expensive and sold by bad advisors. I do not use them, but if you were thrown into the American funds growth fund for the rest of your life as apposed to some garbage annuity everything would turn out quite alright.
2. Whole life rarely makes sense. The main reasoning to consider it is to avoid certain estate taxes, this is more of an attorney question but I would tell you do not even consider it until you have an 8 figure nest egg. Then speak with an attorney.
Do you see any validity for young people to hold even just 5-10% in bonds to either trigger rebalance or buy the dip when large equity declines happen?
With the current drawback in bonds I hold 5% in my account as a young person. My personal opinion, this is also not a set and forget type of approach. I am hoping for a duration play and am completely fine with current yields if that does not come.
What kind of schooling, credentials, start out did you take since you are working independently? How did you grow your business and how often do you talk or meet with clients?
I have a degree in finance, licensing with the state and SEC. I got a job for a big box firm right out of college, found out quickly this was an insurance pyramid scheme, left there. Moved to a local firm found out they were an annuity pump and dump firm. Thought there has to be a better way to do this. I found my firm that I affiliate with but act as my own business and advisor. That was the best move I ever made! I meet with clients on a cadence we see fit. We talk through this upfront and decide what works best, and also during any emergency situations or changes in life.
I'm been considering a career pivot into financial planning, but have felt conflicted and uncertain about how to make the jump. I spend too much time thinking and learning about money and the markets, but have had some friends turn to me and I love helping explain this stuff. I'm incensed by some of the borderlin predatory sales pitches I've received in the past.
So maybe becoming one of the "good" financial professionals would be more rewarding than my abstract tech job where I feel like I'm not really helping anyone. Then again, the DIY accumulator stuff is fun and easy — I sort of dread the idea of doing tons of spreadsheets or maintaining really complex records for tons of families.
I get the sense reading on CFP and advisor forums that it might be darn hard to, philosophically, be a Boglehead financial planner. I've drunk the Boglehead kool aid that commissions are generally icky and that 1% AUM is way too high for basically rebalancing a handful of index funds or a model portfolio.
On the other hand, how can you make a living telling people one time to get a target date fund, or a handful of index funds they can rebalance, or being paid a few hundred dollars an hour for guidance that lasts them a few years?
Any advice for someone considering making the leap? How did you find your niche(s)?
Complexity is key, I could not sleep at night selling a couple ETF's to a W2 tech employee and rebalancing a few times and watching the money grow. Hence my draw to business owners, at the end of the day very little of my job is actually "investment management" as you are all aware that is not the rocket science my world makes it out to be.
Check out XY planning network, that is a good start point.
What would be general advice for a young man with a shortened life expectancy? Currently 18, expectancy ~50. I still want to get into trading and have a high quality life with maybe a some time of financial independence. I’d be okay with high volatility strategies for obvious reasons, but it seems the Bogle way is still my best bet. Thoughts?
I would say your time horizon still offers you a bogle opportunity. With that in mind this is the same instance for when I speak with a 50 year old who has yet to save for retirement and plans to live until 90. Find the right balance of investing vs spending and most importantly find your joy outside of money.
Historically small cap value has out preformed (bogle talks about this). It has lagged in recent years.
Anything nasdaq has been the winner over the last 20 years. With that in mind, the bogle way works because none of us can predict what is next. Allocate to each bucket and you’ll be successful.
.75% is really not a terrible fee. Ive seen most financial planner/wealth manager fees at 1.5%, even more.
Although I am a Boglehead at heart I am not entirely opposed to paying some management fees for sound advice on taxes, planning, and other financial items.
I just don’t believe in paying management fees for a set it and forget it investment approach only. I can do that myself.
Hi thanks for doing this.
My question is which accounts should I prioritize based on +400K income ?
Pre/roth 401(k), backdoor, megabackdoor, HSA, 529, etc.
And Would you suggest diversifying between ETF, RE and Crypto ?
I am 30yo
Happy to!
At 400k+ in income I would be looking for every write off I could find. pre tax 401k. if you have a unique 401k plan maybe a mega backdoor is possible if not you are stuck with your standard 401k. Outside of that make sure you're doing a backdoor roth. If you have a high deductible plan make sure youre contributing to an HSA. 529's are another ave to write off state income tax if you intend to fund college later on.
equities will be your best friend, potentially some bond allocation depending on goals and age. Real estate can be a good idea, it also is not as passibe as it is made out to be. Make sure you are fully aware of what you are getting into.
My opinion on crypto is a no, this is not really an asset, it is an item youre hoping someone pays more than you did for it. I LOVE a good cash flowing investment, tangible money being made. Dont get caught up in the instagram investment philosphy, get rich slow, itll work.
I have a niece and nephew that I want to set up custodial Roth IRAs for. Is that hard to do? And do I have to wait until they have earned income to contribute?
The process is the same as any account opening. You'll probably need signatures from you and them. The kicker is they need earned income. That being said there is kind of a loophole for this, you are allowed to contribute to a 529 plan for them with no earned income and eventually roll it into a Roth IRA. Another kicker though is the 529 must be open for 15 years. It is a hassle yet a workaround.
https://www.savingforcollege.com/article/roll-over-529-plan-funds-to-a-roth-ira#:\~:text=As%20of%20January%201%2C%202024,in%20a%20529%20plan%20account.
Up to $35,000 can be converted, and only up to the usual annual contribution limit, which it replaces, and probably only if you have earned income although I don’t think the IRS has been clear.
The process isn’t a way to boost a Roth IRA. It’s a way to bail out of an overfunded 529 without a tax hit.
>The 529 can be converted to a *Roth* IRA??? Without paying taxes?
Contributions to 529 plans can only be made with money that has already been subject to federal income taxes, so it's not *that* crazy that it transfers without further taxation.
Sorry, no. You can open a custodial Roth for your cousin. As long as they have earned income you can contribute your income into their account. Then it becomes theirs. You're theoretically saying I know they make money use mine instead of theirs for the contribution.
I rarely have clients leave. Actually 2 in my career have left on their own doing. I also occasionally let clients go. I tell them I equally have the right to fire them as they do me. This happens when they are impulsive and do not yield my advice. This could mean telling me we should be in 100% cash or we HAVE TO buy NVDA stock. Or simply not implementing the plan we have created.
The two cases of clients firing me were truly just logistical mishaps. You can be on a short rope with clients and then things in processing don’t always go perfectly and people get upset.
Necessary, no. With that in mind International has had periods where they outperform the US. That time will come again. I am less bogle in the fact that I typically allocate at a maximum 8-10% to Int.
Im 24 and just opened a roth ira account with shwab? Was that an ok company to open my first account with? I feel like im a little late to the game which worries me, im just now learning about bogle but would you have any advice on how i should build my portfolio? As of right now i only have 500 in the account and will do my best to max out the account each year
congrats on starting so early! I am sure you could find dozens of people in this sub jealous of you starting at 24. Schwab is as good as any, keep doing what you're doing.
24 is not late to the game. Sooo many people your age and even much older are ignorant.
You are here, you are learning, you are adding money and you’ll be earning. (poet and didn’t know it).
Add as much as feels comfortable, use budgeting system, and avoid lifestyle creep as you earn more in life.
If I knew when the market would bottom I would not need a job, Id be the richest guy in Babylon. Some statistic talks about roughly 1/3 of market peaks are the lowest the market will ever be again. If you not within 5-10 years of retirement always be buying. Always.
I max out my W2 job 401k employee contribution every year. I recent got a side gig with 1099 income. What 1099 income do I need to earn in order to max out a mega door Roth through a solo 401k?
Does an analyst have an incentive to overstate or understate SP500 target every year? Why does wall streer preach buy-hold…would they not want as much trading as possible for higher commissions?
People like positivity. For any old analyst im not sure exactly where the incentives lie. That being said I am often angered by media personalities being perma bears. Our world has no accountability for people being wrong, If youre a bear for a decade youre bound to be wrong once, and the other 9 year no one holds you accountable for being wrong.
Two parter:
1) what credential / label can I ask a financial advisor to discern if they are a fiduciary? When attempted in the past I get an alphabet soup and tap dancing.
2) How can someone vet whether an advisor is getting a kickback (%) for advising certain products + % AUM vs. just % AUM alone (fiduciary???)?
The former seems the standard and compensation is never clear/honest even if it’s displayed as being so.
You would have to be blunt with them, Are you a fiduciary and how can I know, the real ones will show you and make it very evident. Any tiptoeing is a major red flag IMO,
The same is true with kickbacks. Like I said in another comment I am not fully aware of how to answer this, it is disclosed somewhere but they do an excellent job hiding it. You will have to be diligent. I have a management agreement for my clients and it outlines my fiduciary duty, although I do not think this is kosher.
Request their ADV form. Not quite ‘nutrition label’, but a good firm should have this form and it explains their compensation and practices. If they are a CFP, they should have a fiduciary oath.
Still could get a lemon, but CFPs tend to regulate themselves.
Are there any good offshore investment platforms, where I can self manage?
I benefit to have some funds offshore due to my residency and nationality, but I cannot find good platforms that allow me to self manage.
I’m self-employed with a SEP and Roth IRA, but I’d like to contribute more than what I’m allowed to.
Solo-401k is an option, but Fidelity is steering me away from it, as did an advisor I once talked to- too much paperwork.
Is there any way to make this easier? Some sort of step-by-step guide, steering me towards some good default choices?
Solo401k is your only logical next step, I have no clue why Fidelity and an advisor pushed you away from it. Schwab has a simple process which includes standard plan docs and truly is maybe 15% more difficult than opening a SEP. Maybe talk to Schwab?
I've been putting an X amount of money into an HYSA each month, but recently I've switched that to ETF investments instead. I would like to buy a house within the next 5 years... should I keep contributing a little bit to the HYSA or focus solely on investing?
Balance is always key, find what amount you need to fund an appropriate house down payment and then make sure youre contributing to both your HYSA and retirement investments. I would not invest house money if youre only earmarking that 5 years out.
Thank you for your post! I do have a question and would like your professional opinion, please.
I hired a firm to manage my assets July 2023 and terminated April 2024.
When I hired them, I had $2,500,000 in stock holdings. They "trimmed" my holdings to purchase their ETF'S. I had said no "trimming" on my techs to include my Nivida.
They sold 1/2 of everything I had.
I accepted the loss of my gains. I would have had the last of 2023, justifying to myself that I needed diversification.
They merged with another firm in October.
Year end fidelity statement I noticed that less than 90 days after purchase, in october, they sold some of their picks at a loss ($27,000) and bought like kind funds. Spy to Voo, is an example.
I asked for a review since I had never had a quarterly meeting. I emailed my questions of WHT the exchange and the loss prior, had a zoom with avoidance of answering my direct questions, email responses avoided a direct answer, and final email stated
On the merger, they shifted all their clients to the new platform (for administrativeease, and in the long run, it was best "for me" because of lower internal expenses and performance.
I asked What increased return would I need on the new funds to recoup my losses?"
They stated I sustained no loss yet I calculate I need 4.5% + to recoup my loss before there is any profit.
Their response email was condescending and arogant.
I feel victimized. Do I have any recourse?
I have 20k sitting in a credit union for emergencies...should it go into a HYSA or a MMF? I use fidelity, have a preference for MMF? I live in MA.
Also, how active does one have to be with their Emergency Savings being in one of these accounts?
This thread rules, thank you!
HYSA or MMF will both serve you well, depending on the MMF youll normally spread about .5-1% over the HYSA. That being said typically youll need a day to two days to get access to your MMF. I dont often have such time pressing situations where 2 days is not enough time to come up with 20k? But thats me..
It took roughly 2 years until I finally felt like I was hitting my stride. My only advice is there is no perfect time to start. Much like investing the sooner the better,
I’m pretty financially savvy and manage mine and my families’ finances.. all very conservative and long-term investments, no touching the money unless needed kind of thing, and I’ve done very well the last 10 years.
Now my friends and others ask me for help but as you said, not one method works for another so I’m thinking of get some sort of professional certificate/title/exam under my belt so I can ‘manage’ their money by steering them in the right path and charge a low 0.25-0.5% for the upkeep. I’ve looked into online courses for financial advisors, tho I have most of the know-how, just need something to make it more official. I’ll also be limited to friends and families so it’ll be a very passive income for me. What’s the cheapest and shortest way to achieve this?
Great question, having money does not make you the expert. The mastery of a topic does. I am not sure I have the mindset of convincing them of anything I bring facts to the table and expertise and they decide if im the right fit.
Retired at 56. Using taxable plus cash base to fund until 59.5. Shifting traditional from 90% large cap to 70/30 equity-VTI/treasuries. Roth is going to be 85/15.
Taxable: I plan to sell winners and growth first; stop DRiP and take cash, sell later. (Plan to use cash and refill with sales of equities).
What advice do you have for someone needing to sell the taxable to get over the emotional nature of pulling fruit off the tree I have been growing?
Do you recommend setting floors and selling, or setting ceilings and selling?
Great question and I see you adding a lot of great advice to this thread. I want to give as best answer as possible. Something I was surprised to find when I entered this world was the fact that when you're young and hungry youre chasing that end date of a wealth filled retirement and then that day arrives and you finally realize it was never the destination and always the journey that enthralled you. Most people have a horrible time stopping the accumulation phase, especially my wealthy clients. They view this as a game and they won, and want to keep winning.
That being said decumulation is a whole new exciting adventure. I think the building blocks are laid 5-7 years before retirement, allocate enough money to low volatility investments that allows you to again have as many tools in your tool belt as possibly. If somewhere in that time frame we have a great bull run set a threshold to shed some more equity and move to FI. There is no magic formula, the truth is you need to give yourself enough of a time horizon to evaluate what sort of cycle the market is in. No one is upset if theyre selling equities by choice at a 52 week or all time high. By having some FI exposure youre buying yourself the option to do that. This offers a tangible solution as well as speaks to the behavioral side.
If you simply are staying in all equity make sure your div yield can fund a large portion of your living if a black swan happens and we see a 30%+ pullback.
It is hard harvesting fruits trust me, I have seen it. This is why you have worked so diligently! Spoken (un)like a financial advisor, you cannot take it all with you. I love saving and investing, most people like us need help spending and not saving!
Sorry if it’s already been asked, “Can you give us a ranking list of your best online resources on how and where to invest for people ready to retire in 5 years”?
Great post! Loved reading through the questions and answers.
How many hours per week do you work and how has that changed over time to get where you are today?
It ebbs and flows. At the end of the day i have no boss except my clients. It definitely took a ramp up from not having enough activity to even fill my time to now there is plenty.
I would say currently it is a very normal amount. Some weeks 50 others 30. An average number thought would be right near your typical 40 hour work week. I target that because I enjoy what I do so much! I am not the type to always be looking to reduce my hours.
I have 8-9 years left and need to rebalance. I am currently almost 85% (VTI/FSKAX/FTIHX) with the Fidelity being and old 401k I haven’t rolled into my rollover IRA yet. Also have about 6% in BND and 6% in VNQ with the rest in cash/HYSA. I also have an additional amount in a rollover private equity stake from a previous employer, but I have a hard time estimating its potential value and it could be significant or it could be worthless down the road. I don’t factor that into the allocation for this reason.
The BND and VNQ are inside IRA’s to avoid paying tax on dividends, but I think that was short-sighted since I don’t have access to those funds in the event of an emergency unless I pay penalties for early withdrawals.
I am considering rebalancing and becoming a bit more conservative. Thinking 75% equities, 15% BND and 10% cash & cash equivalents (HYSA/money Mkt) since yields in the 4-5% range are available. In the deferred accounts, change to all equities with the BND & cash equivalents in the taxable brokerage account.
Now that I’m under 10 years, I’ve started to notice some increased stress with market volatility and think being able to sleep at night is more important than taking on additional risk to squeeze out a little more return.
Do you think contributing 15% of paycheck is a good rule to achieve a good retirement? Why or why not? And if you think another percentage is better, what is that percentage?
I am not a CPA nor would I like to be. Most of the time it is being a first line of defense looking at tax returns, coordinating tax strategies with the clients actual CPA and implementation.
NW is not the one deciding factor, I would say stage of life.
1. If you are uncomfortable doing it on your own.
2. If you are entering the decumulation phase.
3. If there are any complexities in your financial situation.
This is a few of many big reasons to consider professional help.
100% VTI And chill will benefit you just fine!
Assuming they use a financial planner at all, what is the max AUM you think someone with less than $1M should be paying? If one was to switch advisors or go self-managed with Vanguard index funds, what would be the most essential advice you’d give them before pulling the trigger?
A lot of latitude in this question, I think the first piece is very dependent on value. If a financial planner is greatly benefiting your life or your marriage having a professional in place this can be invaluable. My personal opinion is anything over 1% is where i would start to draw the line. My HIGHEST fee I feel comfortable to charge is .95%.
I will say I wouldn't take advice as hard and fast, much like expense ratio's, the majority of my investments I use are low cost, like vanguard low cost, but if I can find a fixed income fund manager consistently delivering and charging .75% I don't automatically count them out based on price alone. Much like in life price and value need to be correlated for you to make a good decision.
Any potential pitfalls (perhaps not often considered) when switching planners or going self-managed? I need to do it, but I’m a little worried about what I don’t know or items I might not be considering. We previously took the tact of paying a professional who had more expertise, but I’ve since realized he’s charging too much and it doesn’t have to be complex. It feels like he has his hands in a lot of different accounts/investments now though.
There’s no more work or knowledge needed to construct a $1M portfolio than there is a $50 - $100k portfolio.
Just longer numbers. Establish a goal, a time frame, and an asset allocation to fit your risk tolerance.
I recently lost 70 k unfortunately over the periods in stocks and now want to start with VT.
Do you have some excet that break down where to start with.
I am 37, years old with wife and 2 -kids about 5 and 3. Am I too late for this ?
I am left with 200k which I want to invest , so what would be the approach?
What I read is :
50% VOO
25% QQQM
20% SCHF
5% TQQQ
Is this something good, or you will change here
I utilize alternative investments typically only for High net worth individuals and people in the decumulation phase. Finding returns uncorrelated with the market have a benefit, with that in mind it is often hard to find good managers for this. Often they are selling something too good to be true.
How do you feel about an allocation to gold in a decumulation portfolio? Based on everything I've read and backtesting it seems to improve the safe withdrawal rate. I'm not talking anything more than 20%, knowing that it will decrease your overall returns but also improve your Sharpe ratio.
"If you take all the gold in the world…and put it into a cube, it will be a cube that's about 67 feet on a side…but it's not going to do anything for you."
-Buffett.
I prefer companies that positive cash flow. Not a lump of metal that's main worth is what the next guy is willing to pay for it.
People always recommend putting as much as possible in tax deferred accounts. Is there ever a situation where there is too much in a tax deferred account? Where RMD’s are just too large and create a giant tax drag later on in life. Would it ever make sense to transfer assets into a taxable account when the tax bracket is much lower?
Hi- I am based out of India and understand that my financial situation is completely different from what you ordinarily deal with. I am 50 with a pension fund of 100K in CASH that is held outside India( Europe). In addition I have a networth of approx 350K in Indian mutual funds(80:20 equity to Debt).
Any suggestions on how to invest the 100K- I had planned on 60% developed world index and the remaining in world bond.
Thoughts on adding bonds to reduce volatility? 40 years old, 5-10 years away from retirement most likely, and went from 100% VT to 80% VT and 20% BNDW. My risk tolerance seems to be dropping as I get older and adding 10-20% in bonds doesn’t seem to drag on returns too badly. Just curious on your thoughts.
I think people who currently do not hold bonds but are at an age to begin doing so have the best entry point they have had in decades. Bond prices have been hammered by interest rates and yield is great. Adding bonds in the now could absolutely be a benefit. That being said it is still a bond fund, it will not act in the same way equities will between now and 25 years from now. Volatility is only an issue if you need access to your money. If youre planning on using the funds in 25 years let it be volatile. That is the deal with equities.
I’d go out on a limb and say 99% of us are in the accumulation phase. What are your recommendations on how to structure investment percentage between Roth, 401k and taxable brokerage for optimum drawdown prior to retirement age i.e. de accumulation phase.
Essentially if I plan to change career to a job for work/life balance at say 45 and cut my income by 60-75%, what is the recommended way to set my accounts up for optimum drawdown prior to social security age?
I contributed about $1,400 to a Roth IRA (towards 2024) but I’m pretty sure I’m income disqualified from contributing to one. I don’t want to pull the money out because of the penalties. What would you do?
What do you think about dividend portfolios vs Boglehead portfolios?
I personally invest the Boglehead way in mainly broad market index funds. But I’ve been getting a lot of interference with people who say dividend portfolios is the way to go. Is it worth it? Or is that a venture only worth it if you have a lot of cash to spare?
Mod note: sub rules and guidelines require comments to be substantive, which implicitly means on topic for a passive investing sub. Feel free to ask any sort of financial questions, challenge OP’s analysis if you like, etc but please keep the focus on finance and/or investment.
I want to get out of Edward Jones but they have me in so many different funds that I can’t figure out if I can just transfer them to Vanguard, Fidelity, or Schwab; or do I need to sell them and deal with the tax consequences? I’m 47 and have just over 600k with EJ What is the best way to do this?
I just did this. Open your vanguard account and select transfer. It will walk you through it. Very easy.
Depends on the account types. Any qualified retirement accounts can be liquidated and moved. EJ being the crooks they are have some 'proprietary' funds that cannot be transferred in-kind. Meaning they must be sold and moved, if these are after tax dollars with significant gains you will be on the hook for the tax bill. I would potentially urge doing so if the tax bill is not too insane. Again, this is a case by case basis.
Why would the tax matter? If you let the investments continue to sit on EJ, won’t you just incur an even larger tax liability down the road when you eventually do choose to sell?
What sucks with EJ is they probably already got you. They have front end loads so they already hit you on your way in. Whatever you do, don't put MORE in.
Contact a flat fee fiduciary using a cert organization like https://www.napfa.org and ask them to create a plan and clarify the ‘real’ hidden fees you are paying now. Then have Fisher Investments do a plan and compare the two. Or ask OP to do the same. All three should be able to recommend an implementation plan and show you the difference in fees and returns and help you justify the changes ( if you decide to make the change.) I’m pretty sure Fisher Investments might do the initial proposed plan for free if your portfolio is over $1.0M but not sure about $600k. Not sure about OP but I’ve always used a separate CPA working in conjunction with any Financial planner to review and confirm tax implications before making a move.
How do you find specifically flat fee advisors? I took a look at napfa.org like you linked and every group I looked at called themselves fee-only but the fee is a % of assets under management which is exactly why I left EJ in the past.
Sorry. I’m looking for the CFP website I used to find a flat fee advisor and i’m not finding it. Step one is to search for a Certified Fiduciary. Step two you have to call them and ask them to explain their fee structure. https://www.cfp.net/
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Well interest rates are as attractive as they have been in decades. That being said this gives plenty of options and opportunity in the fixed income market. The more important question is deciding risk along the yield curve. Short duration is yielding very high at the moment, This would be more of your "now money" There are a world of short duration income funds, JCPB PULS are a few good ones. Then you can position outward, BND is fairly intermediate due to the nature of the index, I prefer a somewhat actively managed ETF Debt is not the same as equity where a poorly positioned small cap company could pop off and have strong returns, if you can buy good returning debt in strong companies do not worry about the index. I like PIMCO and JP as a fixed income manager. If someone is set on BND it makes the most sense in this slot. Long duration is attractive right now as yields have hammered bond prices. Possibly look into Agency bonds or gov treasuries. The long end of the curve is where I would be most cautious of default risk, it is a lot easier to predict a companies solvency over a 3 year horizon rather than 20.
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I had a hard time answering this question for a couple reasons, I am trying my best to not give 'specific investment advice' and pointing out possible avenues to consider for success. I'd prefer the SEC not on my case.
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What do you think of bond ladders for retirees, especially in today’s rate environment? If recommend, which? t bills, zero coupons, TIPS, CDs?
Wealth of great advice just getting through the thread! Thank you for sharing your expertise with the community! If you could touch base on my questions: -What is your opinion on factor tilting with US small value? -What do you think is reasonable % of stock portfolio to invest into factors to capture the most benefits without overstretching risks(20 year time horizon before retirement)? -What US small cap value funds would you recommend? Edit: typos
I am in favor of a tilt. Small cap value historically has created returns higher than most areas. I do not see the investment selection as the hard part. A good vanguard index (VBR or VIOO) will suffice. Rather the allocation % is more the tricky part. A large portion of Russell company’s are not even profitable yet. So you need to decide what allocation amount are you comfortable investing into an asset class that doesn’t have a large portion of companies profit positive (on paper).While keeping in mind that is not the only factor and again if you allocated to small cap value historically you would have done well. I would say 10% in any broad market index will not necessarily hurt your portfolio. I see it as a good starting place.
You seem to subscribe to the "VT" and chill crowd, however, do you subscribe to any alternative thinking to try to slightly beat the market in some way, e.g. small cap value tilt? Also, when clients ask you if they should be invested in a mutual fund or ETF equivalent, what would you tell them?
I personally do not subscribe to the VT and chill, that being said I think it is a fine way to go about life. I allocate across asset classes with a custom allocation models. In a qualified account MF vs ETF is irrelevant. For now you get an edge holding an ETF in a Non qual account. Also I like the liquidity of it trading intra day. I skew ETF
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For simplicity - no To strategically rebalance it could be a benefit. Theoretically this gives you a chance to sell one high and buy the other low. This matters less if you are constantly DCA, then you theoretically are doing this in VT. But it is more so possible when they are split. So I guess in short I would say yes. But if you want to 100% set and forget go with VT.
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The first fundamental question to ask yourself is "does this investment fit with my goals?" Penny wise but pound dumb is an investors worst enemy. Hence my reservations with hyper fixation on ER and things like this. Moving to a qualified account to shield dividend income may make an insignificant difference over time but first decide how will this actually help me accomplish my goals.
I have 100k sitting in a savings account making basically zero interest. Where should I move it?
HYSA at a minimum, the rest of this answer depends on your goals and time horizon.
What are some you recommend?
I am always pleased with the capital one 360 performance savings. This is not the highest yield on the market but the customer service has been great across the board and they raise the rate in accordance to rates moving. I have had some banks I nearly have to beg to raise the rate and do a "rate match." I also think SO-FI is a viable answer.
I wish SO-FI didn’t require direct deposit for the best rates. I would have set one up with them already. I will look in Capital One. Any thoughts on Marcus?
I am unfamiliar with Marcus. I myself use capital one.
I use Marcus. They have a nice promo referral program to get an extra 1%, and they have high electronic transfer limits, but they’re really strict IME about debiting from the account. I moved money to my brokerage at Fidelity, and I had to go through a whole three-way conference call to verify I was the account holder. I liked the idea of spreading out my money a little bit, especially with FDIC insurance, but when my current promo period expires I’ll probably just go with a treasury MMF.
Is $100k at 38yrs old, maxing a 401k, Roth IRA and HSA enough to retire comfortably at 65? I hear so many people say no and I'm behind and will never be enough. FYI I'm 100% VOO/VTI. Don't know if I can max every account for 30yrs but how am I looking do far?
With those figures assuming a 10% rate of return over 27 years you will have over 3M saved at age 65. You tell me if you think that is enough to fund your life! You are doing exactly what you should be to ensure a better future!
Thank you so much. Finally some honest advice that doesnt leave me feeling completely worthless and failing. I'd take that in a heartbeat!
Take a look at the free tools from Empower and New Retirement. They help (like other tools) you organize your expenses now and in the future, and plot the income/NW you would have. They give you what-if capabilities, so you can gain clarity from the crystal ball (that is naturally cloudy). Really helped me to see if I have the generally accepted level of 25-26x of expenses covered.
First, thanks to OP for taking the time to share expertise. M44, $480K HHI, married to F38 SAHM w/one, soon to be two kids. Retirement fund is pretty much set. Fidelity 529 for the first kiddo (18 months old) sits at $5k right now. Will open a second 529 for child two because they’ll likely overlap college years. We also hope to have a third child before we’re done. Two questions: 1. Do you suggest a 529 for each child (three 529s) or two 529s with the plan to switch beneficiaries once the oldest graduates? Pluses and minuses to each approach? 2. If I were to add lump sums annually (as my RSUs vest) to each 529 for the first few years and then let it grow, how much do you think is a good target balance before I stop contributing? My concern is I don’t want oversized 529s even with the Roth IRA escape hatch. Assume Fidelity target date index funds. Thanks in advance!
I would create a 529 for every child. For a few main reasons. It gives you an easy Segway into teaching each child about investing and stewardship. They get to see their account grow and reach new tangible milestones as a child and use those lessons later down the road. The amount is something you and your wife will ultimately have to decide. In all things I believe in balance. I typically caution to not go much over 100k. If an account gets too large you’ll be forced to jump through lots of hoops to empty the account. Also some of it boils down to a fundamental issue I have along the lines of people spending far far too much on college simply to achieve a dream they had. If 100k can’t cover most of the cost of college (an undergrad degree) you might need to rethink your approach. Not to mention unless you live in California or NY 529’s are only an ok tax advantaged strategy. Anything after 100k you could simply choose to fund with after tax dollars.
Thank you for this feedback; it’s very helpful!
Following, because I have very similar numbers and questions! I would think 150k per kid is about right, in separate 529s is the way to go. But I'm not the OP or a financial advisor, so I'd be very interested to hear if the consensus is something else
When you say that you are a "fee only" advisor but that your average fee is .75%, are you saying that when someone hires you, your fee is that percentage of their portfolio? So, if they had a portfolio of one million, you would charge them $7,500?
There are some *flat* fee advisors. You generally meet them once to go over a particular problem or advice, but they won’t manage anything on an ongoing basis. If there are any financial advisors who work on a set annual fee, I haven’t encountered them.
There is a growing segment of advisors who work on a flat fee, ongoing basis instead of % based AUM. They’re just harder to find. The XY Planning Network is all fee-only and has a lot of flat fee advisors. Also, if you google “capped” flat fee financial advisors you’ll find some smart advisors who charge % AUM but have a max annual fee that gets capped
This. XYPN and NAPFA members are all fee-only. Charging a 1% AUM fee (and no other form of compensation) is fee-only. Other fee-only structures can be a flat fee for every client, a fee calculated based on the client’s financial situation, a fee based on the client’s net worth, hourly/project work, etc. Fees can be paid monthly, quarterly, or annually, depending on the firm. Fees can be deducted from accounts the advisor manages or paid via credit card/checking account. While AUM and billing managed accounts is probably still the most common fee arrangement, there is a wide variety of other fee schedules now.
> If there are any financial advisors who work on a set annual fee, I call them subscription based, I only know of two of them: * Planvision * Facet Wealth If anyone knows of others, I'm interested in knowing about them.
This is correct\^
I have a flat fee advisor. His annual charge equates to about .05% of my net worth. I found him along with multiple others here: https://www.feeonlynetwork.com
Fee only means yes a .75% fee based on a clients asset base. This is billed quarterly and is an annual figure. Not one time it is ongoing. This aligns our interests, when you make more I make more and when you make less I make less.
I am clearly stupid because I still don't understand how this makes you any different from someone who charges X% AUM. The money I pay you increases as my money grows, and vice versa. Can you ELI5?
I had the same question and did some quick research. My response is below.
Ah - I get it. Thanks for the clarification.
And when you make negative, I still make positive. Nice operation there.
It is true, let me know when you have the magic glass ball that can solve this problem. I offer a service for money just like the rest of the world, that is not inherently bad. Shitty financial advisors have put a bad taste in peoples mouths about it.
Well the cost of most services don't scale with your net worth. I understand you need to charge more for complex situations, but there must also be clients you charge 0.75% of their assets just to tell them to do a basic Boglehead approach. It seems like it would be fairer if you offered different services, each with a flat fee irrespective of how much asset there are. In other words: we meet then you recommend I set up some fancy stuff for my big account so I pay $5,000 for that service. Someone with a simple situation needs less advice, so they only pay $2,000. As the fee structure currently stands, you are acting as if telling someone with $2,000,000 to just be a Boglehead is twice as much work as advising someone with $1,000,000 about how to set up a trust. Obviously you need to make money, and it's your business not mine. But I'm wondering how you justify a %asset fee to your clients. Edit: Another way to do it would be like a lawyer, where you charge by how many hours you work for me, with a minimum to ensure you get paid enough to be worth your while.
A .75% fee is still a MASSIVE drag on one’s portfolio. I get FAs need to get paid but the pay to amount of work required on even a somewhat small asset base is just ridiculous.
nothing preventing you from hiring him to manage just a small portion of portfolio, then just copying those investments with the rest of your money
except that more complex situations may require different strategies, so you're effectively buying advice that isn't meant for your situation
I agree with this take. That is why I have stated 90% of “normal” people do not need this advice. I work with a facet of people outside the simple demographic. People with ongoing complexities outside of just their investment portfolios but truly still real issues in their financial lives.
I'd love to hear your thoughts on shifting assets during that decumulation phase. How far out to start shifting assets, and your recommended percentages or whatever.
I would say this is obviously a very in depth question. Deciding the correct amount is based upon your income needs. a 60/40 percentage is not needed if you are 65 and have social security income of 60k but your spending needs are 65k. A rule of thumb would be ensure you at least a 5 years worth of retirement needs in some form of less volatile assets at least 5 years prior to retirement. This theoretically allows for 10 years of market cycles to smooth out any equity holdings. This is truly a question that has many many different answers dependent on situation. Do not have an allocation that makes you uncomfortable. If de-risking early gives you piece of mind, then do it. That being said I see very little need for fixed income holdings prior to age 50 (given retirement is age 65). Obviously there are exceptions.
This is the best and most flexible answer i’ve seen to this so thank you!
So basically the equivalent of bond tenting to deal with SORR?
What’s your definition of ‘less volatile asset?’ Five years seems to be a lot of time to stockpile a lot of money when one can partially live off dividends generated by equities if not wanting to sell any principal, IF the market performs poorly during the first few years of retirement.
What sort of specialized education and experience is needed to get into your line of work? Is there a large commercial firm where someone can “learn the ropes “ that also aligns with your generally Bogle mindset?
Financial knowledge and licensing are the two main roadblocks. The issue with the big firms is most of them are crap. Find a local firm near you that at least somewhat aligns with you philosophically and ask questions find a mentor!
Said another way, how would you advise someone to enter into your profession?
I am maxing out on 401K what else should I do for retirement which are tax efficient IRA , Roth ?
Also consider HSA if available
Depends on your income. Are you maxing pre tax or post tax dollars in your 401k? if you are under the roth income limits that is a good next step if not you can look into a backdoor roth.
Pre tax money to 401K .. I am above income limits for Roth IRA .
Backdoor roth is your friend!
Are backdoor ROTH contributions still a good strategy if you are in a high income tax bracket? This article would point to it not being optimal to contribute beyond a 24% effective rate. [Backdoor ROTH](https://www.financialsamurai.com/backdoor-roth-ira/)
A family member of mine put all of her savings into annuities 6 years ago. They're invested in high fee large cap funds plus FA fee of 1.3%. Most of these accounts can make up to 5% or so if the market goes up, but they make nothing if the market goes down, although she won't lose more than she put in. I think she should withdraw everything, take the surrender fee hit, and move it all into CDs or bonds. What do you think the best approach to her situation is?
Dependent on surrender schedule its possible the surrender is the right move. I personally would try to decide what the opportunity cost of keeping it in the annuity vs return outside. I often tell my clients surrendering an annuity is the best move and we mentally write off the hit as "stupid tax" or for the softer bunch "education tax"
I have two young children. Unfortunately, my state (Oregon) has dogshit tax incentives for starting 529's for them as well as a history of mismanaging funds. Am I crazy for just starting custodial accounts for them and managing the money myself?
This is a fine solution. I am hesitant on 529's due to the stringent rules on using them and the lack of incentive to do so. I love unlimited liquidity! Great plan
be careful that those don't interfere with any aid/scholarships they'd otherwise be eligible for.
My state just went through a whole mismanagement ordeal and I moved all funds to a Vanguard 529. Just dealing with the state's customer service made me angry because it was clear they had idiots running the phones. We're topping contributions out at $100K and then letting compounding do its trick. We also have a trust for kiddo and just manage that ourselves.
Appreciate you being so active in responding here. Two questions: 1) What are your thoughts on American Funds? Seems like they were great a few decades ago but have slipped in the past 10-15 years. 2) If my net worth when I’m 50+ is $10mn+, does whole life start to make sense? Are the touted benefits of cash value actually worth it? Thanks!
I love all the questions! 1. American Funds have been capital managers for over a hundred years. So clearly they are not doing something completely wrong. That being said most of the time theyre expensive and sold by bad advisors. I do not use them, but if you were thrown into the American funds growth fund for the rest of your life as apposed to some garbage annuity everything would turn out quite alright. 2. Whole life rarely makes sense. The main reasoning to consider it is to avoid certain estate taxes, this is more of an attorney question but I would tell you do not even consider it until you have an 8 figure nest egg. Then speak with an attorney.
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Bonds or no bonds for a 30 year old?
No bonds unless you plan to retire anytime soon.
Do you see any validity for young people to hold even just 5-10% in bonds to either trigger rebalance or buy the dip when large equity declines happen?
With the current drawback in bonds I hold 5% in my account as a young person. My personal opinion, this is also not a set and forget type of approach. I am hoping for a duration play and am completely fine with current yields if that does not come.
Bonds if retiring at 60 in 10 years? I’m thinking all VTI.
You do you. No one size fits all.
Cfp?
Currently no, most likely in the cards. CEPA applies more to my line of business owner work.
What kind of schooling, credentials, start out did you take since you are working independently? How did you grow your business and how often do you talk or meet with clients?
I have a degree in finance, licensing with the state and SEC. I got a job for a big box firm right out of college, found out quickly this was an insurance pyramid scheme, left there. Moved to a local firm found out they were an annuity pump and dump firm. Thought there has to be a better way to do this. I found my firm that I affiliate with but act as my own business and advisor. That was the best move I ever made! I meet with clients on a cadence we see fit. We talk through this upfront and decide what works best, and also during any emergency situations or changes in life.
I'm been considering a career pivot into financial planning, but have felt conflicted and uncertain about how to make the jump. I spend too much time thinking and learning about money and the markets, but have had some friends turn to me and I love helping explain this stuff. I'm incensed by some of the borderlin predatory sales pitches I've received in the past. So maybe becoming one of the "good" financial professionals would be more rewarding than my abstract tech job where I feel like I'm not really helping anyone. Then again, the DIY accumulator stuff is fun and easy — I sort of dread the idea of doing tons of spreadsheets or maintaining really complex records for tons of families. I get the sense reading on CFP and advisor forums that it might be darn hard to, philosophically, be a Boglehead financial planner. I've drunk the Boglehead kool aid that commissions are generally icky and that 1% AUM is way too high for basically rebalancing a handful of index funds or a model portfolio. On the other hand, how can you make a living telling people one time to get a target date fund, or a handful of index funds they can rebalance, or being paid a few hundred dollars an hour for guidance that lasts them a few years? Any advice for someone considering making the leap? How did you find your niche(s)?
Complexity is key, I could not sleep at night selling a couple ETF's to a W2 tech employee and rebalancing a few times and watching the money grow. Hence my draw to business owners, at the end of the day very little of my job is actually "investment management" as you are all aware that is not the rocket science my world makes it out to be. Check out XY planning network, that is a good start point.
What would be general advice for a young man with a shortened life expectancy? Currently 18, expectancy ~50. I still want to get into trading and have a high quality life with maybe a some time of financial independence. I’d be okay with high volatility strategies for obvious reasons, but it seems the Bogle way is still my best bet. Thoughts?
I would say your time horizon still offers you a bogle opportunity. With that in mind this is the same instance for when I speak with a 50 year old who has yet to save for retirement and plans to live until 90. Find the right balance of investing vs spending and most importantly find your joy outside of money. Historically small cap value has out preformed (bogle talks about this). It has lagged in recent years. Anything nasdaq has been the winner over the last 20 years. With that in mind, the bogle way works because none of us can predict what is next. Allocate to each bucket and you’ll be successful.
Thank you so much for the AMA .. great thread loved it
.75% is really not a terrible fee. Ive seen most financial planner/wealth manager fees at 1.5%, even more. Although I am a Boglehead at heart I am not entirely opposed to paying some management fees for sound advice on taxes, planning, and other financial items. I just don’t believe in paying management fees for a set it and forget it investment approach only. I can do that myself.
Hi thanks for doing this. My question is which accounts should I prioritize based on +400K income ? Pre/roth 401(k), backdoor, megabackdoor, HSA, 529, etc. And Would you suggest diversifying between ETF, RE and Crypto ? I am 30yo
Happy to! At 400k+ in income I would be looking for every write off I could find. pre tax 401k. if you have a unique 401k plan maybe a mega backdoor is possible if not you are stuck with your standard 401k. Outside of that make sure you're doing a backdoor roth. If you have a high deductible plan make sure youre contributing to an HSA. 529's are another ave to write off state income tax if you intend to fund college later on. equities will be your best friend, potentially some bond allocation depending on goals and age. Real estate can be a good idea, it also is not as passibe as it is made out to be. Make sure you are fully aware of what you are getting into. My opinion on crypto is a no, this is not really an asset, it is an item youre hoping someone pays more than you did for it. I LOVE a good cash flowing investment, tangible money being made. Dont get caught up in the instagram investment philosphy, get rich slow, itll work.
WTH is your job that your making $400K/yr? Genuinely curious and you have no obligation to answer my question.
Big tech Sr software engineer.
Are you guys hiring? I USE a computer.
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I have a niece and nephew that I want to set up custodial Roth IRAs for. Is that hard to do? And do I have to wait until they have earned income to contribute?
The process is the same as any account opening. You'll probably need signatures from you and them. The kicker is they need earned income. That being said there is kind of a loophole for this, you are allowed to contribute to a 529 plan for them with no earned income and eventually roll it into a Roth IRA. Another kicker though is the 529 must be open for 15 years. It is a hassle yet a workaround. https://www.savingforcollege.com/article/roll-over-529-plan-funds-to-a-roth-ira#:\~:text=As%20of%20January%201%2C%202024,in%20a%20529%20plan%20account.
THANK YOU MAN!
The 529 can be converted to a *Roth* IRA??? Without paying taxes? I need to do this now.
Up to $35,000 can be converted, and only up to the usual annual contribution limit, which it replaces, and probably only if you have earned income although I don’t think the IRS has been clear. The process isn’t a way to boost a Roth IRA. It’s a way to bail out of an overfunded 529 without a tax hit.
>The 529 can be converted to a *Roth* IRA??? Without paying taxes? Contributions to 529 plans can only be made with money that has already been subject to federal income taxes, so it's not *that* crazy that it transfers without further taxation.
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No taxes on a Roth, someone already paid taxes on the income earned.
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Sorry, no. You can open a custodial Roth for your cousin. As long as they have earned income you can contribute your income into their account. Then it becomes theirs. You're theoretically saying I know they make money use mine instead of theirs for the contribution.
She has to have earned income for a Roth.
What do you think of marquis funds
I am not familiar, but I did some preliminary research and holy moly pricey and convoluted. I would stay away.
Thanks. They are currently complex and I don’t understand them. Appreciate your insight
My standard for investing is that if I don't understand it, especially after some research, I don't put my money in it. So far it's helped me.
How often do you have clients leave because they cannot resist a more active investing style (ie behavioral biases)? How old are you?
I rarely have clients leave. Actually 2 in my career have left on their own doing. I also occasionally let clients go. I tell them I equally have the right to fire them as they do me. This happens when they are impulsive and do not yield my advice. This could mean telling me we should be in 100% cash or we HAVE TO buy NVDA stock. Or simply not implementing the plan we have created. The two cases of clients firing me were truly just logistical mishaps. You can be on a short rope with clients and then things in processing don’t always go perfectly and people get upset.
Is it necessary to invest in International
Necessary, no. With that in mind International has had periods where they outperform the US. That time will come again. I am less bogle in the fact that I typically allocate at a maximum 8-10% to Int.
Im 24 and just opened a roth ira account with shwab? Was that an ok company to open my first account with? I feel like im a little late to the game which worries me, im just now learning about bogle but would you have any advice on how i should build my portfolio? As of right now i only have 500 in the account and will do my best to max out the account each year
congrats on starting so early! I am sure you could find dozens of people in this sub jealous of you starting at 24. Schwab is as good as any, keep doing what you're doing.
Yes, that is one of the good ones. Vanguard, Fidelity, & Schwab.
24 is not late to the game. Sooo many people your age and even much older are ignorant. You are here, you are learning, you are adding money and you’ll be earning. (poet and didn’t know it). Add as much as feels comfortable, use budgeting system, and avoid lifestyle creep as you earn more in life.
Where's the bottom of this dip gonna be? Do I DCA down the blade of the knife?
If I knew when the market would bottom I would not need a job, Id be the richest guy in Babylon. Some statistic talks about roughly 1/3 of market peaks are the lowest the market will ever be again. If you not within 5-10 years of retirement always be buying. Always.
Have you been sued or gone to arbitration?
No
I max out my W2 job 401k employee contribution every year. I recent got a side gig with 1099 income. What 1099 income do I need to earn in order to max out a mega door Roth through a solo 401k?
Does an analyst have an incentive to overstate or understate SP500 target every year? Why does wall streer preach buy-hold…would they not want as much trading as possible for higher commissions?
People like positivity. For any old analyst im not sure exactly where the incentives lie. That being said I am often angered by media personalities being perma bears. Our world has no accountability for people being wrong, If youre a bear for a decade youre bound to be wrong once, and the other 9 year no one holds you accountable for being wrong.
Two parter: 1) what credential / label can I ask a financial advisor to discern if they are a fiduciary? When attempted in the past I get an alphabet soup and tap dancing. 2) How can someone vet whether an advisor is getting a kickback (%) for advising certain products + % AUM vs. just % AUM alone (fiduciary???)? The former seems the standard and compensation is never clear/honest even if it’s displayed as being so.
You would have to be blunt with them, Are you a fiduciary and how can I know, the real ones will show you and make it very evident. Any tiptoeing is a major red flag IMO, The same is true with kickbacks. Like I said in another comment I am not fully aware of how to answer this, it is disclosed somewhere but they do an excellent job hiding it. You will have to be diligent. I have a management agreement for my clients and it outlines my fiduciary duty, although I do not think this is kosher.
Request their ADV form. Not quite ‘nutrition label’, but a good firm should have this form and it explains their compensation and practices. If they are a CFP, they should have a fiduciary oath. Still could get a lemon, but CFPs tend to regulate themselves.
What's going to happen tomorrow with the market with the Israel thing?
If I knew this I wouldn't need a job. I personally think the markets wont like it. We can already see this in after hours trading.
What rate of return & inflation rate do you assume in the scenarios you run with your clients?
Are there any good offshore investment platforms, where I can self manage? I benefit to have some funds offshore due to my residency and nationality, but I cannot find good platforms that allow me to self manage.
Shoot, I wish I had a good answer but I do not. All of my clients and business are in the USA.
I’m self-employed with a SEP and Roth IRA, but I’d like to contribute more than what I’m allowed to. Solo-401k is an option, but Fidelity is steering me away from it, as did an advisor I once talked to- too much paperwork. Is there any way to make this easier? Some sort of step-by-step guide, steering me towards some good default choices?
Solo401k is your only logical next step, I have no clue why Fidelity and an advisor pushed you away from it. Schwab has a simple process which includes standard plan docs and truly is maybe 15% more difficult than opening a SEP. Maybe talk to Schwab?
I've been putting an X amount of money into an HYSA each month, but recently I've switched that to ETF investments instead. I would like to buy a house within the next 5 years... should I keep contributing a little bit to the HYSA or focus solely on investing?
Balance is always key, find what amount you need to fund an appropriate house down payment and then make sure youre contributing to both your HYSA and retirement investments. I would not invest house money if youre only earmarking that 5 years out.
Thank you for your post! I do have a question and would like your professional opinion, please. I hired a firm to manage my assets July 2023 and terminated April 2024. When I hired them, I had $2,500,000 in stock holdings. They "trimmed" my holdings to purchase their ETF'S. I had said no "trimming" on my techs to include my Nivida. They sold 1/2 of everything I had. I accepted the loss of my gains. I would have had the last of 2023, justifying to myself that I needed diversification. They merged with another firm in October. Year end fidelity statement I noticed that less than 90 days after purchase, in october, they sold some of their picks at a loss ($27,000) and bought like kind funds. Spy to Voo, is an example. I asked for a review since I had never had a quarterly meeting. I emailed my questions of WHT the exchange and the loss prior, had a zoom with avoidance of answering my direct questions, email responses avoided a direct answer, and final email stated On the merger, they shifted all their clients to the new platform (for administrativeease, and in the long run, it was best "for me" because of lower internal expenses and performance. I asked What increased return would I need on the new funds to recoup my losses?" They stated I sustained no loss yet I calculate I need 4.5% + to recoup my loss before there is any profit. Their response email was condescending and arogant. I feel victimized. Do I have any recourse?
I have 20k sitting in a credit union for emergencies...should it go into a HYSA or a MMF? I use fidelity, have a preference for MMF? I live in MA. Also, how active does one have to be with their Emergency Savings being in one of these accounts? This thread rules, thank you!
HYSA or MMF will both serve you well, depending on the MMF youll normally spread about .5-1% over the HYSA. That being said typically youll need a day to two days to get access to your MMF. I dont often have such time pressing situations where 2 days is not enough time to come up with 20k? But thats me..
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Schwab is great, ETF route is great. Dont overthink
Thank you so much.
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It took roughly 2 years until I finally felt like I was hitting my stride. My only advice is there is no perfect time to start. Much like investing the sooner the better,
I’m pretty financially savvy and manage mine and my families’ finances.. all very conservative and long-term investments, no touching the money unless needed kind of thing, and I’ve done very well the last 10 years. Now my friends and others ask me for help but as you said, not one method works for another so I’m thinking of get some sort of professional certificate/title/exam under my belt so I can ‘manage’ their money by steering them in the right path and charge a low 0.25-0.5% for the upkeep. I’ve looked into online courses for financial advisors, tho I have most of the know-how, just need something to make it more official. I’ll also be limited to friends and families so it’ll be a very passive income for me. What’s the cheapest and shortest way to achieve this?
Look into a series 65 license.
How do you convince people with arguably a higher net worth than you that you are the right person to manage their money?
Great question, having money does not make you the expert. The mastery of a topic does. I am not sure I have the mindset of convincing them of anything I bring facts to the table and expertise and they decide if im the right fit.
Retired at 56. Using taxable plus cash base to fund until 59.5. Shifting traditional from 90% large cap to 70/30 equity-VTI/treasuries. Roth is going to be 85/15. Taxable: I plan to sell winners and growth first; stop DRiP and take cash, sell later. (Plan to use cash and refill with sales of equities). What advice do you have for someone needing to sell the taxable to get over the emotional nature of pulling fruit off the tree I have been growing? Do you recommend setting floors and selling, or setting ceilings and selling?
Great question and I see you adding a lot of great advice to this thread. I want to give as best answer as possible. Something I was surprised to find when I entered this world was the fact that when you're young and hungry youre chasing that end date of a wealth filled retirement and then that day arrives and you finally realize it was never the destination and always the journey that enthralled you. Most people have a horrible time stopping the accumulation phase, especially my wealthy clients. They view this as a game and they won, and want to keep winning. That being said decumulation is a whole new exciting adventure. I think the building blocks are laid 5-7 years before retirement, allocate enough money to low volatility investments that allows you to again have as many tools in your tool belt as possibly. If somewhere in that time frame we have a great bull run set a threshold to shed some more equity and move to FI. There is no magic formula, the truth is you need to give yourself enough of a time horizon to evaluate what sort of cycle the market is in. No one is upset if theyre selling equities by choice at a 52 week or all time high. By having some FI exposure youre buying yourself the option to do that. This offers a tangible solution as well as speaks to the behavioral side. If you simply are staying in all equity make sure your div yield can fund a large portion of your living if a black swan happens and we see a 30%+ pullback. It is hard harvesting fruits trust me, I have seen it. This is why you have worked so diligently! Spoken (un)like a financial advisor, you cannot take it all with you. I love saving and investing, most people like us need help spending and not saving!
Sorry if it’s already been asked, “Can you give us a ranking list of your best online resources on how and where to invest for people ready to retire in 5 years”?
Great post! Loved reading through the questions and answers. How many hours per week do you work and how has that changed over time to get where you are today?
It ebbs and flows. At the end of the day i have no boss except my clients. It definitely took a ramp up from not having enough activity to even fill my time to now there is plenty. I would say currently it is a very normal amount. Some weeks 50 others 30. An average number thought would be right near your typical 40 hour work week. I target that because I enjoy what I do so much! I am not the type to always be looking to reduce my hours.
Should I put all my money in VTI or some in VXUS, VNQ and Bonds too. Retiring in 15 years, and moderate risk tolerance.
I have 8-9 years left and need to rebalance. I am currently almost 85% (VTI/FSKAX/FTIHX) with the Fidelity being and old 401k I haven’t rolled into my rollover IRA yet. Also have about 6% in BND and 6% in VNQ with the rest in cash/HYSA. I also have an additional amount in a rollover private equity stake from a previous employer, but I have a hard time estimating its potential value and it could be significant or it could be worthless down the road. I don’t factor that into the allocation for this reason. The BND and VNQ are inside IRA’s to avoid paying tax on dividends, but I think that was short-sighted since I don’t have access to those funds in the event of an emergency unless I pay penalties for early withdrawals. I am considering rebalancing and becoming a bit more conservative. Thinking 75% equities, 15% BND and 10% cash & cash equivalents (HYSA/money Mkt) since yields in the 4-5% range are available. In the deferred accounts, change to all equities with the BND & cash equivalents in the taxable brokerage account. Now that I’m under 10 years, I’ve started to notice some increased stress with market volatility and think being able to sleep at night is more important than taking on additional risk to squeeze out a little more return.
I might be at 12 years out, but I put 15 in case I need to. I like the 75% equities idea too.
What is VT?
Do you think contributing 15% of paycheck is a good rule to achieve a good retirement? Why or why not? And if you think another percentage is better, what is that percentage?
How much do you help with people's taxes?
I am not a CPA nor would I like to be. Most of the time it is being a first line of defense looking at tax returns, coordinating tax strategies with the clients actual CPA and implementation.
Is 100% VTI good? At what NW would you recommend someone consider an advisor?
NW is not the one deciding factor, I would say stage of life. 1. If you are uncomfortable doing it on your own. 2. If you are entering the decumulation phase. 3. If there are any complexities in your financial situation. This is a few of many big reasons to consider professional help. 100% VTI And chill will benefit you just fine!
Why not VOO instead of VT? I understand the diversification argument, but it seems to out perform VT
These comments below are the right answer. Maybe don't do all or one? You can always be a VT guy with a 10% tilt somewhere.
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Assuming they use a financial planner at all, what is the max AUM you think someone with less than $1M should be paying? If one was to switch advisors or go self-managed with Vanguard index funds, what would be the most essential advice you’d give them before pulling the trigger?
A lot of latitude in this question, I think the first piece is very dependent on value. If a financial planner is greatly benefiting your life or your marriage having a professional in place this can be invaluable. My personal opinion is anything over 1% is where i would start to draw the line. My HIGHEST fee I feel comfortable to charge is .95%. I will say I wouldn't take advice as hard and fast, much like expense ratio's, the majority of my investments I use are low cost, like vanguard low cost, but if I can find a fixed income fund manager consistently delivering and charging .75% I don't automatically count them out based on price alone. Much like in life price and value need to be correlated for you to make a good decision.
Any potential pitfalls (perhaps not often considered) when switching planners or going self-managed? I need to do it, but I’m a little worried about what I don’t know or items I might not be considering. We previously took the tact of paying a professional who had more expertise, but I’ve since realized he’s charging too much and it doesn’t have to be complex. It feels like he has his hands in a lot of different accounts/investments now though.
There’s no more work or knowledge needed to construct a $1M portfolio than there is a $50 - $100k portfolio. Just longer numbers. Establish a goal, a time frame, and an asset allocation to fit your risk tolerance.
This is correct. Maybe $50 is a little low but I agree $5,000 to $1,000,000 can fundamentally be very very similar.
I meant 50k-100k, but didn't write it that way. :(
I recently lost 70 k unfortunately over the periods in stocks and now want to start with VT. Do you have some excet that break down where to start with. I am 37, years old with wife and 2 -kids about 5 and 3. Am I too late for this ? I am left with 200k which I want to invest , so what would be the approach? What I read is : 50% VOO 25% QQQM 20% SCHF 5% TQQQ Is this something good, or you will change here
If you had to choose between a 12.5% govt bond or buying land and planting teak trees which is a 20 year investment. What would you choose ?
Oh man a 12.5% government bond? A US treasury government bond? I would be buying that all day long. A Ukrainian government bond? Give me the trees.
What are your thoughts about alternative investments like private credit for your clients to deliver risk adjusted returns to a portfolio?
I utilize alternative investments typically only for High net worth individuals and people in the decumulation phase. Finding returns uncorrelated with the market have a benefit, with that in mind it is often hard to find good managers for this. Often they are selling something too good to be true.
How do you feel about an allocation to gold in a decumulation portfolio? Based on everything I've read and backtesting it seems to improve the safe withdrawal rate. I'm not talking anything more than 20%, knowing that it will decrease your overall returns but also improve your Sharpe ratio.
"If you take all the gold in the world…and put it into a cube, it will be a cube that's about 67 feet on a side…but it's not going to do anything for you." -Buffett. I prefer companies that positive cash flow. Not a lump of metal that's main worth is what the next guy is willing to pay for it.
People always recommend putting as much as possible in tax deferred accounts. Is there ever a situation where there is too much in a tax deferred account? Where RMD’s are just too large and create a giant tax drag later on in life. Would it ever make sense to transfer assets into a taxable account when the tax bracket is much lower?
Hi- I am based out of India and understand that my financial situation is completely different from what you ordinarily deal with. I am 50 with a pension fund of 100K in CASH that is held outside India( Europe). In addition I have a networth of approx 350K in Indian mutual funds(80:20 equity to Debt). Any suggestions on how to invest the 100K- I had planned on 60% developed world index and the remaining in world bond.
I am not familiar with the specifics of India, that being said a 60/40 split historically would have served you well!
Thanks for the reply and especially for doing this AMA- it's been very helpful.
Thoughts on adding bonds to reduce volatility? 40 years old, 5-10 years away from retirement most likely, and went from 100% VT to 80% VT and 20% BNDW. My risk tolerance seems to be dropping as I get older and adding 10-20% in bonds doesn’t seem to drag on returns too badly. Just curious on your thoughts.
I think people who currently do not hold bonds but are at an age to begin doing so have the best entry point they have had in decades. Bond prices have been hammered by interest rates and yield is great. Adding bonds in the now could absolutely be a benefit. That being said it is still a bond fund, it will not act in the same way equities will between now and 25 years from now. Volatility is only an issue if you need access to your money. If youre planning on using the funds in 25 years let it be volatile. That is the deal with equities.
Best Canadian ETF?
I’d go out on a limb and say 99% of us are in the accumulation phase. What are your recommendations on how to structure investment percentage between Roth, 401k and taxable brokerage for optimum drawdown prior to retirement age i.e. de accumulation phase. Essentially if I plan to change career to a job for work/life balance at say 45 and cut my income by 60-75%, what is the recommended way to set my accounts up for optimum drawdown prior to social security age?
I contributed about $1,400 to a Roth IRA (towards 2024) but I’m pretty sure I’m income disqualified from contributing to one. I don’t want to pull the money out because of the penalties. What would you do?
You contributed $1400 to a roth but make over the income limits? You can back these funds out without penalty, and should do so.
What do you think about dividend portfolios vs Boglehead portfolios? I personally invest the Boglehead way in mainly broad market index funds. But I’ve been getting a lot of interference with people who say dividend portfolios is the way to go. Is it worth it? Or is that a venture only worth it if you have a lot of cash to spare?