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Decisions, Decisions

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Old 01-24-2019, 03:15 AM
  #11  
Dominant Buck
 
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You're welcome. After all who cares the most about you?

also, the bad thing regarding pensions besides their frequency of going belly up because payouts have nothing to do with what's left for everyone, they die when you die. Sure your spouse continues to get a fraction of your pension but after they're gone, it's gone. You can do much better investing on your own and when you die, it goes where you want it to go.

After you get this taken care of, estate planning is next for you. We went to our first session this week. We have had a will from when our kids were little but now their grown and starting their own family. It was eye opening to say the least regarding what you need to do to protect your assets after you die and what goes where even with a will in place due to contract laws and state laws. Also ways to avoid probate which could take years. So that's next for us.

cheers

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Old 01-24-2019, 03:15 AM
  #12  
Dominant Buck
 
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My advice is hire a good financial adviser. Anyone can make decisions on investing but the main issue when approaching and going into retirement isn't what you are earning but more what you get to keep. A good FA can set up a revenue stream and also work towards limiting taxation. In my case I opted to not take the pension due in part to what FM said about survivor options. The cash out gave me access to all my retirement funds and would give my survivors 100% of it if I didn't survive. The sooner you get on a FA program the better IMO. I hired mine in 2000.
I'll add the advice about estate planning is another step as FM has suggested. Going from a working person to retired is quite a transition which will hopefully cover many years. Having a sound financial plan and protecting assets is important.

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Old 01-24-2019, 02:06 PM
  #13  
Nontypical Buck
 
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There are basically two types of financial advisors. One type (aka "salesmen") makes their money by providing you free advice to buy into the investments that their firm represent, and they pocket fees from the sale and usually a percentage. The other type (aka "consultants") charges for their time and do not profit from your decisions. The size of the investment usually guides people to which type of advisor is best for them.

As a completely separate matter, seek competent professional advice on estate planning from an attorney or CPA that specializes in these matters (not just a general practice guy or gal). Our firm has seen too many big problems that were caused by bad advice that was given to good people in the their past. The financial impact of a bad decision usually pales in comparison of a personal (family) impact. One of the most common problems we see results from assets (real estate, investment property, etc.) that have been left jointly to family members.
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Old 01-24-2019, 02:35 PM
  #14  
Dominant Buck
 
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My FA is a flat fee. His advice benefits only me. If I am making money then I don't mind paying a modest flat fee. Almost a 20 year relationship and he has done well for me. He calls the shots but I do have to agree. I would be nuts to not follow his advice. I sleep well at night knowing my financial affairs are being well handled.

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Old 01-24-2019, 03:32 PM
  #15  
Dominant Buck
 
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Originally Posted by Big Uncle View Post
There are basically two types of financial advisors. One type (aka "salesmen") makes their money by providing you free advice to buy into the investments that their firm represent, and they pocket fees from the sale and usually a percentage. The other type (aka "consultants") charges for their time and do not profit from your decisions. The size of the investment usually guides people to which type of advisor is best for them.

As a completely separate matter, seek competent professional advice on estate planning from an attorney or CPA that specializes in these matters (not just a general practice guy or gal). Our firm has seen too many big problems that were caused by bad advice that was given to good people in the their past. The financial impact of a bad decision usually pales in comparison of a personal (family) impact. One of the most common problems we see results from assets (real estate, investment property, etc.) that have been left jointly to family members.
that was what we heard from our first venture into the topic. I think I mentioned we have a will but it's out dated. It was good for when it was written. We were young and still building our assets and family. Now we're reaching our later years and need to look at what is going where. Fortunately, my kids have turned out well and very responsible. I would have no issues leaving a chunk of money to my 22 year old son or my daughter and her husband. However, it was interesting to hear their many examples on ways to protect the wealth l. If you have a kid that isn't very responsible you can put great conditions or incentives in place. Or if you have an in law who isn't up to par, to keep their mitts off of the money. Or even in the event of a spouse remarrying after death, keeping the nest egg in the family. All things to think about and stuff I've seen others go through. So yes, getting a dedicated firm who specializes in this is very important.
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