<p>I know there isnt such a thing as having too much money. However, as immigrants from Laos, we have saved and saved and we are at a stage that we are having a hard time managing our money. Had we not lost a total of $150K cash in the stock market in 1999 2001 periods, we could have probably gotten into the top 30% of the country in net worth now (In 2004, the medium household net worth is US was around $95K and top 10% was above $850K).</p>
<p>In any case, we are hesitant in getting a financial planner. If a planner is so good, why he or she still needs to work? Those free ones at Banks only want us to buy their products with extra high fees (loads).</p>
<p>The #1 question we have now is whether to start spending or continue to save for retirement. With our pensions, estimated social security benefits, and my current 401K, we would have about $7000 9000 a month when we are 65. We have other tax deferred retirement accounts which would give us couple millions if we could manage just 10% return. Our cheap house is about to be paid for and we always use cash to buy used cars. </p>
<p>We also have a six figure high interest cash account. Per our current way of spending, we would generate about $35 - 40K a year in saving on top of my $20K 401K contribution including company matching. </p>
<p>I say we start enjoy life a little but DW wants to put our max into Roth accounts. I want to spend most of cash except some emergency fund. However, I am feeling a lot of guilt because we have been operating under saving mode for so long buying thing we dont need is very hard. </p>
<p>Based on your experiences, do you think we would benefit from a financial planner? Do they typically worth the fee we pay?</p>
<p>the stock decreases hit a lot of people pretty hard- our retirement accounts lost a lot of money at that point and we are still trying to build it back up.</p>
<p>If you have already maxxed out your company matching fund, have maxxed out the money you can contribute to retirement accounts and still have significant cash on hand, I think a financial planner would be worth talking to, but I am sorry I can’t give you suggestions to where to find one that doesn’t just have products to sell.</p>
<p>The big problem with financial planners is that those who are really good only take very high net worth people–usually $10M minimum. They are putting their clients in things like hedge funds many of which require a minimum million $$ investment.</p>
<p>And Mini, sometimes good advice and access is worth paying a commission for. Those rich just keep getting richer with investments most of us don’t have access to. My parents agree with you but working on Wall Street opened my eyes.</p>
<p>I think Mini doesn’t mind paying $$ for good advice…but whenever you work with someone who gets a commission for selling certain items, the conflict of interest issues can become very serious.</p>
<p>Heaven help you if you get your broker on the day that the brokerage house is running a “the person who sells the most shares of XXXX gets a free trip to Hawaii” promotional.</p>
<p>You just have to be very careful out there…</p>
<p>As I read the OP’s question, they are looking for financial planning, NOT for the highest return investments. This precisely where (if you get a good one) fee-only based planners should shine.</p>
<p>I concur with fee based planner if and only if you feel that must hire one.</p>
<p>From the numbers you have posted you have already have accumulated assets and secured a future income stream. Do you have the basics finance issues covered such as:</p>
<ol>
<li>pay off credit card debt</li>
<li>6 months of emergency liquid assets.</li>
</ol>
<p>IMHO you do not need a financial planner. You have already figured out the basics and done the most important part. That said, You may want to consult with an attorney to help you with your estate planning issues. (Long term care, medicaid, probate avoidance,etc)</p>
<p>"The #1 question we have now is whether to start spending or continue to save for retirement. "</p>
<p>A simple way to look at this is to figure out how long you might live and how much money you will need for every year you are alive. </p>
<p>The danger of spending and not saving is that you will run out of assets and income before you die. Also, you will incur risk if you have a health issue that will require long term care.</p>
<p>What you decide on probably will have alot to do with your appetite for risk. You mentioned SS, whatif SS runs out of money in 2041. What if the stock market returns are 2% or even negative what will you do then?</p>
<p>My retirement funds are managed by Fidelity and I pay a fee of 0.75% annually. But this small amout is offset by the fact that I pay no transaction fees when funds are bought or sold. And because the monies are professionally managed, I am not restricted to Fidelity funds Presently only 8 of the 28 positions are in Fidelity Funds. My funds are highly diversified and am satisfied with the results, having beaten all market indices for the two years under their management. Not by a lot, but by a couple percent. </p>
<p>At this stage in my life I am not looking to significantly outperform the markets if it means added risk. And one reason I did so well in the past decade is that I did not buy into the hi tech bubble frenzy. That artificial market run up also helped to accelerate gains in other market sectors where I was invested. And when the hi tech bubble burst, my portfolio did go down but not like the hi tech sector but I was still way ahead of where I was 4 years earlier.</p>
<p>I am one of those evil ones in the business. EVERYBODY gets paid, nobody lives on Sunshine. The question becomes how transparent it is. If a broker makes a certain commission up front wouldn’t it be good to know this, rather than be told no commissions (but plenty of built in fees). Or even better being sold shares at NAV even though they were purchased via block discount?</p>
<p>Figure out what’s really reasonable and you might find for different people it’s a different way. It may be a commissioned broker, it may be a fee based planner. No one particular vendor of advice is 100% pure, even though they all say they are for reason a,b,c. </p>
<p>Talk to a few different ones and get a feel for things. From the op post I get a vibe that he really doesn’t want advice from anybody, just confirmation he’s doing it right. There’s little clues given. Maybe poster should find out why his wife doesn’t see it the same way. </p>
<p>He also may have to concern himself with estate taxes as he may not be a US citizen and I don’t believe they were given an exemption for estate taxes as they weren’t allowed one before. </p>
<p>He needs to spend the money to speak with a cpa, attorny and some type of investment advisor and/or insurance agent if he doesn’t have one already. Just ask up front how they get paid, from all aspects, not just commission. Last time I checked those fidelity guys weren’t on food stamps. Just have whomever you deal with disclouse ALL payments, fees and charges. No loads are my personal favs where people spend a hell of alot of money over time to avoid a “commission”. They never look at what things cost overall.</p>
<p>*With our pensions, estimated social security benefits, and my current 401K, we would have about $7000 9000 a month when we are 65. We have other tax deferred retirement accounts which would give us couple millions if we could manage just 10% return. Our cheap house is about to be paid for and we always use cash to buy used cars.</p>
<p>We also have a six figure high interest cash account. Per our current way of spending, we would generate about $35 - 40K a year in saving on top of my $20K 401K contribution including company matching.*</p>
<p>um laserbrother- do you have a twin?
I can’t believe this post is from the same guy
Because I see everyone is doing better than me and I don’t like to be the poorest guy in the party.</p>
<p>Man, when you are poor, your life sucks.*</p>
<p>If the area that you live in- is so high end that having almost $100,000 to live on in retirement, is * poor*, you may feel much more comfortable joining the rest of us ;)</p>
<p>answers to a couple questions -
yes we are american citizens;
Not, we have 0 credit card debt - use credit mostly to earn cash back ~$600 a year
Yes, we have way too much cash in hand now enough to live on for the next 10 years
yes, we have set up estate via a lawyer
No, I don’t have a twin
Yes, we are still on the very very bottom of the worth/income level in our area. My D just told me a kid in her HS spent over $1000 to run for a school student gov seat. My neighbor cross the yard just got a sport car for $150,000.</p>
<p>Not, I still don’t get it. All your answers make thing even more confusing. I guess I should just buy a mutual fund with decent load and let the money roll.</p>
<p>I just want to add- that while I dont doubt your ancedotes, there are many many places in the world where people live more modestly.
The amount of money that you spend/have to spend, doesn’t measure your worth or how much you love your family.</p>
<p>Bill Gates for Petes sake, often drinks 7-11 coffee and drives a Honda ( or at least he was last time I saw him)</p>
<p>If you can afford to buy a fancy sports car and really want one, then as long as you are going to drive safely and not going to act like you own the road, go ahead.
But if you aren’t genuinely interested in living in a high wealth, excessive consumption area, find someplace where there are more people whose values you share.</p>
<p>How about check out books from the library? It’s a cheap option and the more you read the more it helps you to reach a concensus on what to do. I don’t have a financial planner either, always leery of them. Also don’t want people to know how much money I have. I have spread my money across different banks and investment groups.
What I take away from reading these books is ithat index fund/ETF is the simple version because it keeps the cost of your investment low. Diversify is another idea. Put away the maximum you can afford is where it matters and not the savings rate as much. Once you reach a nest egg that if you only have to withdraw 4 - 5% annually, you never have to worry if you run out of money until you’re 100.
But you sound to be doing alright, keep doing what you’re doing.</p>
<p>This discussion starts to let me see the issue. I think it is about the view of the future.</p>
<p>I see it as we had done pretty good so far and we should not worry about it any more. My DW may be less optimistic and still wants to put more into saving.</p>
<p>There is no book nor adviser could help us solve this difference. She worries about thing like bad job market, what if I got sick etc.</p>
<p>I say, let government take care of us like to rest of people. If we could not pay mortgage because we spend on other things, government will bail us out. if we loss insurance, government will give us medicare (?). Why live under a budget and suffer? </p>
<p>Sounds like an old topic again, sorry. Take a while to figure out what is the real problem.</p>
<p>if we loss insurance, government will give us medicare
<a href=“Medical and health information”>http://www.medicalnewstoday.com/medicalnews.php?newsid=55752</a>
*
Under the 2006 doughnut hole provision of the standard prescription drug benefit, beneficiaries are responsible for 100% of prescription drug costs between $2,250 and $5,100. For 2007, beneficiaries will be responsible for 100% of prescription drug costs between $2,400 and $5,451.25 *</p>
<p>of course if you don’t need any meds when you retire, you will be doing pretty well:D</p>
<p>Your wife will most likely live longer than you. She has a legitmate worry. Her concerns are valid.</p>
<p>What industry are you in? Is it subject to downturns? Look around, are there people there older than you? Or are you the senior man? Do people actually retire from your profession? This is where savings are an issue. </p>
<p>Disability insurance makes great sense during your working years IF you can get it. You can always reduce premium cost by self insuring the deductible period (days 30,60,90,180, 1 year etc…) You are your most valuable asset, yet people rarely protect their earning ability. </p>
<p>Long term care insurance is also something to consider.</p>
<p>“Letting the government do it…” absolutely possible. Is that what you want or is that just being itchy about it? You do have the ability to have a say in your care, if you want, otherwise you can take what is given. Having grown up eating the government cheese, it’s not as gravy as you may think. </p>
<p>Living under a budget isn’t really that bad is it? Why not as part of your budger create a “just blow it fund”? Fun money account for travel and what ever floats your boat. </p>
<p>There are ways to slove her worries and still make yourself happier. Keep looking and talking until you find someone you can work with.</p>
