Since you are already working with two advisors, I assume that you keep each aware of the risk profile & allocation that the other advisor manages? In other words, if you were to withdraw a chunk of the funds and invest them on your own, the advisors would still contemplate your overall portfolio?
It sounds as though each of the advisors perform functions that you appreciate, so is there a way to retain both relationships while also investing some of the money on your own?
Yes. Each is aware of what I have with the other. If I self-managed part, they would remain aware of the whole portfolio.
Good question. Not sure, but probably. But, fees are on a sliding scale and so as you decrease AUM, you increase the average fee on the money they are managing. The big savings would be transferring it all to the one that would do it at 50 bps or increasing their AUM and self-managing more than half and working with only one of the advisors. It is a little hard to know what exactly the fees are for Advisor 1 but assume they are 80 bps. If they were 100 bps, giving them half and self-managing would be the same fee as giving it all to them at 50 bps. With Advisor 2, I don’t think I can give them all of the business because I need good execution for my companies. They are at a point in the fee curve where incremental assets are at 40 bps, but the average fee was 62 bps and they want to increase to 74 bps (I think those are the numbers). I am just quite surprised by the overall magnitude of the fees that I pay for this. There is definitely some incremental value to having Advisor 2 (who I value for creativity and investment advice) in addition to Advisor 1 (who I value for execution but who has gotten a lot more solid on investment advice over time due to a change in personnel). But is that worth $20K a year? $50K? $100K?
LOL - consider that a ‘job well done’ for accumulating significant assets 
Not having lived beyond your means.
I honestly would run the numbers by ShawWife, and she may be more willing to set up residence for 50.1% of the year in FL in the right property. She may be willing to focus doing more painting while in MA and a little less in FL while doing more ‘other things’ in FL.
Can make the changes down on investments/FA IMHO after one does the bigger task - ShawWife or you can have the estate set up to have overall savings. It means having her on the same financial and lifestyle plan - if she is not willing, then fine. But if she knows the numbers, she may be willing to have things set up more ideally with estate/tax planning and not having FT residence continuing in MA.
What I gathered was that if ShawWife didn’t have a true professional studio like she has in MA, Massachusetts Department of Revenue would argue that Massachusetts is really our tax home. That would be the impetus for finding a place that enables us to have a professional studio.
Being a Florida resident for tax purposes would save us a lot more each year than she makes as an artist. Plus, our 401k would be out of our MA estate and we might be able to be creative about keeping our house of the estate, but I would not bet on it. At least early on that would be a big slug of money, but it would decline over time.
“A true professional studio” - if she has a studio both places, I think MA Dept of Revenue would not have a leg to stand on. If she does work in both places…..I really think it is worth moving forward on it. I certainly would be looking for the right property in FL.
Some of the states are getting pretty ridiculous - first with their taxation, and then will the measures they will go to on their residents. When higher earning individuals leave their state (and they see it shrinking their tax revenues), the ones who make the decisions within the state have to be willing to make adjustments to have people with flexibility WANT to stay within the state for over 50% of their time. Some are gone more because they want warmer weather - going to AZ, FL, or other places, not necessarily because of taxes.
You will figure it out.
Some friends decided to move to NV because his military pension (retired General) would not be taxed there. They had grandchildren in CA, and the wife was from Hawaii. It worked out great for them.
The state I am in (AL) doesn’t tax military and some other pensions as well. That doesn’t affect us any (neither DH nor I have pensions), but over the last decade, DH and I have gotten pretty strong feelings about areas of the country we do not want to live - and some we don’t even want to visit. Fortunately, our children are in TX and FL, with all the grandchildren in TX - and when things work out, we look to be moving there if DD1’s family stay (SIL is following up on a job since finishing his time in the Army; DD1’s career is there and the grandkids are doing will with school/activities).
SIL’s parents are looking to move into some kind of IL/AL community in their city in TX. We all will be there in another week. DD1/SIL have already done a preview look at these communities (screened for ‘the best ones for them’) - DD1 says each has pluses and minuses, and SIL’s parents are going to have to see these communities and decide.
I think you are wise to consider the possibility of a residency audit. While spending 183 days is one component, showing intent to have Florida as your primary residence is important, too. Changing addresses, registering to vote, tagging your cars, establishing doctors there, redoing wills and estate plans in Florida, and even moving some sentimental/treasured belongings to Florida are all good steps. Perhaps resigning from social clubs where you are now and joining others in Florida. Change church affiliation (if you have that). I think a dedicated art studio for your wife does go a long way in establishing that Florida is your domicile, though I don’t think it has to be bigger. Show that new studio on her website. Ship art she sells from Florida.
We are at a crossroads regarding our FA and where we have both retirement and non-retirement investment accounts. My husband is now retired, but when he worked for a brokerage firm, we were restricted to only using them for our investment accounts. We had a wonderful FA and were happy. Now, that FA retired, my husband retired, and we are not happy with the service the new FA team is providing.
I know it will be quite a bit of work to move these accounts (and the plan is to move them and keep our positions doing an in-kind transfer). My husband has started looking into the various alternatives.
So when we did our FA setup (with a group that later became Mercer), they created Schwab accounts. What they claimed was that any time we wanted to part ways, all we had to do is have their FA consultant names disassociated with the Schwab accounts. However, we have stayed… so I can’t say if it really would be that simple or not.
I just moved accounts inherited from my mom from Edward Jones to Ameriprise.
It was very easy. I reached out to our FA at Ameriprise. They needed the account statement from EJ ( my mom’s account was transferred into my name)
Ameriprise did what they call a sweep and things were transferred pretty seamlessly.
tranferring publically-traded stuff is pretty simple to do by electronic transfer in-kind. Transferring proprietary in-house funds can be more of a challenge. NBD if in retirement accounts. Just convert to cash, move, and buy replacements in new brokerage. Of course, converting to cash (selling) in a taxable account can generate cap gains.
@kiddie, my impression is that the new firm you choose will be very diligent about trying to move the assets and the old firm will somehow find reasons to slow down the transfers. Extra signatures on forms you didn’t know you needed (and they didn’t tell you that you needed and that you may not really need) etc. But @bluebayou is correct. If you can liquidate anything that is not a stock or a publicly traded bond or money market fund, the transfer will be easier.
We are definitely doing our bit to help the economy. I bought a new car (that I am really beginning to love, though not quite as much as my old one) for me a few months ago replacing my 13 year old BMW. ShawWife’s 14 year old car was also due – it was waiting for $4-5K of repairs and its market value is $6K. We have a huge solar installation on our roof (24.5 kW) and so I wanted to get her an EV that could carry her art stuff. We looked at lots of EVs and also some hybrids, but the Tesla seemed an order of magnitude better in almost every dimension (speed, handling, tech generally, reliability, user interface, self-parking, self-driving) except one (the owner). They reimagined the car and the buying experience – no negotiation, no hassle, sensible design. Incremental purchases associated with new cars. I am putting in a trailer hitch (hers will come with it), bike rack for the trailer hitch (as my old one won’t work on my new car), roof rack for the kayaks (again the kayak attachments will work but need a new roof rack), rubber mats for the Tesla so all of the artist junk can be put in without staining anything.
And, I’m getting a bit obsessive about health through cycling. I didn’t know that I should a) be cycling at a much higher cadence; and b) do HIIT workouts twice a week. I’m now doing both. Bought a heart monitor and now think I should get a cycling computer and a cadence sensor for my outdoor bike that will share data with Zwift. Is this what retirement is about?
Does anybody have a Northwestern Annuity? Some older friends want help setting up portal access to see mid-quarter balances, but I’m leery that it result in no more snailmail statements / 1099s etc (which would be a bad idea for folks who does most things via paper).
We have a NM account and still get snail mail statements even though we can look at stuff online. I imagine it would be the same for them but a quick phone call or email to their agent should clarify it.
Good idea. Even if original agent not still around, likely there is an 800 number on the statements.
The statement will have their current agent and phone number/email etc.
Lawmakers in Washington state are in a mad rush to force a state income tax, though voters have turned it down time and time again. I’m trying to look at the implications of what could happen in the future.
I noticed that most states tax 401K and IRA distributions. Wow, really? I had no idea before this that states actually taxed this. I’m sure my state will tack this on if they manage to slip through an income tax on everyone.
I had never considered significant Roth conversions before due to tax rates, but maybe it’s something to consider in the future, particularly if the market drops a lot.
It’s unearned income. Not sure why you are surprised it is taxed in states that have a state income tax.
Some of these states do not tax pension and/or SS income. State dependent.
I am surprised. I suppose I considered retirement distributions as different somehow. Looks like beyond the no income tax states, there are four that don’t tax it.