1.4 million net worth - financial advising?

[Anonymous]

Anonymous wrote:

Anonymous wrote:So basic setup first.

https://i.imgur.com/lSoUQr2.png

https://www.reddit.com/r/personalfinance/wiki/index/

Bogleheads. Buy a mutual fund and wait $3M.

$1.4 isn't enough to do anything "interesting" unless you want to be an entrepreneur or an angel investor I'm other people's specific small businesses.

At $1.4, there is a good chance that you have bond investments. Getting tax free munis without an advisor is a pain. Vanguard offers California funds, but good luck getting Virginia or Maryland

Never buy bond mutual funds

Always buy individual bonds.

Go with Schwab

Schwab has original issue munis. Forget vanguard , they dropped munis in late 2010’s

[Anonymous]

Anonymous wrote:You don't start building wealth by giving it away by hiring someone. The much bigger net worth people can do it because they get a better deal and probably other advice.
I'm guessing the $900k is mostly invested, not 'to invest'. What is it invested in?
Do you need to know where to invest some of the cash and what's more to come?
The idea is to keep it simple and not add yet another person to your circle, and not mess with the fund already invested. Moving money around triggers taxes, penalties, fees.
Put it in Voo, Vti and done.

+1
Put it in an index fund and forget the password.

[Anonymous]

My in-laws are very successful financial advisors. On the sly, they advise us to forgo using them (or anyone else) because few-to-none ever beat the S&P.

[Anonymous]

Anonymous wrote:My in-laws are very successful financial advisors. On the sly, they advise us to forgo using them (or anyone else) because few-to-none ever beat the S&P.

An advisor also does stuff like... advising. Helps with estate planning, tax efficiencies (including tax loss harvesting), and long-term financial planning. For some people, that can provide a lot of value.

[Anonymous]

Anonymous wrote:You don't start building wealth by giving it away by hiring someone. The much bigger net worth people can do it because they get a better deal and probably other advice.
I'm guessing the $900k is mostly invested, not 'to invest'. What is it invested in?
Do you need to know where to invest some of the cash and what's more to come?
The idea is to keep it simple and not add yet another person to your circle, and not mess with the fund already invested. Moving money around triggers taxes, penalties, fees.
Put it in Voo, Vti and done.

This!!

[Anonymous]

I care about my money too much to hire an advisor. If you do too, park it in index funds and start reading. My favorite blogs are bogleheads, financial samurai, white cost investor, physician on fire and esi money. From there, you’ll get a lot of book and podcast recommendations and it is worth reading the same books that get recommended over and over.

[Anonymous]

Anonymous wrote:The only person who is really going to look out for your money is you. It’s not that complicated but it’s worth being a little bit educated. Check out the Bogleheads guide to investing as a decent place to start.

I agree with this. Unless you have a really high net worth all most advisers will do is overcomplicate your portfolio and charge fees.

[Anonymous]

Anonymous wrote:You don't start building wealth by giving it away by hiring someone. The much bigger net worth people can do it because they get a better deal and probably other advice.
I'm guessing the $900k is mostly invested, not 'to invest'. What is it invested in?
Do you need to know where to invest some of the cash and what's more to come?
The idea is to keep it simple and not add yet another person to your circle, and not mess with the fund already invested. Moving money around triggers taxes, penalties, fees.
Put it in Voo, Vti and done.

Moving money in a down market creates losses which can be carried over to offset gains in up markets. If you are paying fees or penalties to move money, you are doing something very wrong.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You don't start building wealth by giving it away by hiring someone. The much bigger net worth people can do it because they get a better deal and probably other advice.
I'm guessing the $900k is mostly invested, not 'to invest'. What is it invested in?
Do you need to know where to invest some of the cash and what's more to come?
The idea is to keep it simple and not add yet another person to your circle, and not mess with the fund already invested. Moving money around triggers taxes, penalties, fees.
Put it in Voo, Vti and done.

Moving money in a down market creates losses which can be carried over to offset gains in up markets. If you are paying fees or penalties to move money, you are doing something very wrong.

What nonsense. The only people who have losses at current values are short-term traders. If you want to volunteer to pay extra capital gains taxes, go for it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No OP but I'd like to play.
$2M in 401Ks and in Fidelity. Of that, I think $500K is not in retirement.
no debt.
I'm embarrassed to say this, but in retirement, we migth be holding about $300K in cash.
Yes, my finances are joint with husband.

Advisors can't manage your 401k only taxable accounts usually. And it is a waste of money anyway.

DP. They can manage rollover IRAs, which is where many people have most retirement savings. DW and I have all but about $50 k of our $1.6 M retirement savings in rollover IRAs due to job changes.

[Anonymous]

I have thought a LOT about this and go bogleheads three bucket investment and call it a day.

[Anonymous]

900K in cash or already invested somewhere? You could also explore RE investments, I mean, rentals. Not saying it's easier, there are different types of hassles there. You could also diversify into a rental and Markets, many do this, but it's also more work as you'd need to learn about 2 types of investment vehicles. I am guessing here a lot of people have finance background, maybe went to business school or worked in a related field, so they are more comfortable with stock markets. Others prefer tangible type thing or even a business investing. Easiest way is to have someone else manage for you, but apparently it's a waste of money like others say.

I am just generally annoyed that all after-boomer generations not only have to work hard to make money and then be frugal and save, but also have a second job investing it just to keep up with inflation. I wish it wasn't this way and you could keep your money in an old fashioned savings or a CD paying some minimum percentage and leave the job of investing to the banks that pay you interest. And I wish we had pensions... and better functioning healthcare. Oh well.

[Anonymous]

Anonymous wrote:I have thought a LOT about this and go bogleheads three bucket investment and call it a day.

Which funds and in what kind of accounts? Roth, taxable??

[Anonymous]

NP here - what about the robo advisor option offered by some brokerages?

[Anonymous]

We use a financial advisor bc I find the stress of handling the money too much. It’s not our area of expertise. Our money continues to grow and I can have a conversation with an educated person regarding any questions. I don’t sit here and look to see if our return is 4 percent instead of 5. We have millions, we are comfortable and I have peace of mind.