Retired couple 70/68 yo ; 70 yo took SS at 66
68 yo will take at 70(high earner) ; one pension 55k
Currently invested at MS looking to find
better/cost effective (current fee w MS 150bps all in) Advisor
3.3M portfolio includes two Axa variable annuities; one qualified( TSA) other non- qualified w guaranteed 6% GMIB
3 IRA MANAGED ACCTS :
CORE BOND AAA/ HIGH YIELD SMA ACCT (175bps fee)
TWO BALANCED 50/50 ACCTS (150bps fee)
2 Managed Taxable accts 50/50 ( 150bps fee)
Question: Want advisor to sort this out; reduce fees
1) Is Vanguard PAS good place to start? Schwab, Fidelity?
Can they advise on variable annuities
2) Are fee only advisors possibilty? Pro/Con
Portfolio Question
Re: Portfolio Question
Welcome to the forum!
By Boglehead standards, a 1.5% per year AUM would be totally unacceptable. Even if you stay with an AUM manager you should be able to find a quality manager for no more than 1%.
In general, most of us tend to favor fee-only financial planners. Very few couples need regular hand-holding, most need an occasional “checkup” and fee-only planners fit well in that situation. Have them look over your account every 2-3 years.
You can post the Annuity information here and get good analysis. We have some insurance professionals (and retired insurance professionals) who can comment.
By Boglehead standards, a 1.5% per year AUM would be totally unacceptable. Even if you stay with an AUM manager you should be able to find a quality manager for no more than 1%.
In general, most of us tend to favor fee-only financial planners. Very few couples need regular hand-holding, most need an occasional “checkup” and fee-only planners fit well in that situation. Have them look over your account every 2-3 years.
You can post the Annuity information here and get good analysis. We have some insurance professionals (and retired insurance professionals) who can comment.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
Re: Portfolio Question
Truly, invest everything in Target Retirement 2020 for the 70 year old and Target Retirement 2025 for the 68 year old and call it a day. As Bogle said, "you get (to keep) what you do not pay for!"
Re: Portfolio Question
Anyone have experience with Vanguard PAS for portfolio
management vs Schwab Premium Investment Portfolios?
management vs Schwab Premium Investment Portfolios?
Re: Portfolio Question
Many people use a 100% position in a single fund (or fund of funds) to get automatic worry-free account management. For example if an investor wanted a 60/40 blend they could invest 100% of an account in VBIAX Vanguard Balanced Index Shares for an expense ratio of .07% (7 bps) without any other fees. With that there's no need even for PAS.
The closest helping hand is at the end of your own arm.
Re: Portfolio Question
Neither of those will provide any general advice. They will take the money you transfer to them and invest it according to their pre-planned portfolios. Which are fine, simple portfolios, but not specific advice for your situation.
A good fee-only financial planner will look at everything (including the annuities) and give you a recommended plan going forward. Depending on complexity, I have heard numbers like $3000 -$4000. That is way cheaper than what you are paying now, even if you had an annual visit. And they aren’t trying to sell you financial products.
I don’t know your breakdown between annuities and brokerage, but if for example you have, say, $1M in brokerage @ 150 basis points (1.5%), you are paying ML $15,000 a year for their portfolio management.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius