Posted: 8/30/2025 8:45:34 AM EDT
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Gonna retire soon at 60. Happily married and 50 y/o wife has her own retirement, so income iis fine. We use her insurance plan. Due to health, it is unlikely I will see 70. Don't anticipate pulling much from 401K at first but youngest's college may change that. I am NOT financially savvy, but dutifully socked away money. I have zero interest in finance or investing and that will not change. My inclination is to just leave it in Fidelity account where it has been for 20+ years with employer who I recently left. I can draw from it every 3-6 months if we need it. Local Fidelity guy is asking me to consider him as a financial counselor and sign up. Fee is basically 1%. Current administrative costs of plan are almost nothing and won't change. I've always trusted my instincts. In last week or two, Im leaning towards hiring him to manage account. Worth it or no? Inertia makes it easy to do nothing and leave it where it is. I made 12.5% last 12 months which is not brag worthy, but at least not ugly. Advice? |
Behave Yourself
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Originally Posted By Utahshooting: I am NOT financially savvy, but dutifully socked away money. I have zero interest in finance or investing and that will not change. Local Fidelity guy is asking me to consider him as a financial counselor I've always trusted my instincts. Advice? You answered your own question and it’s clear that there will be 20+ replies in this thread but you will be hiring the guy and ignoring the replies. Call him Tuesday and save yourself time. Meanwhile save everyone energy posting real tactical responses. On the other hand, someone in your position with a taking responsibility for their future mindset would be an ideal candidate for a 3 bucket strategy approach. Very easy to do and educate themself with information out there. |
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For now I’d roll it over into a rollover ira at Fidelity and invest in the same things you’re invested in now. No tax implications and you’re no longer limited to the rules and choices of the 401k plan. It’s a few mouse clicks and maybe 5 minutes on Fidelity’s website. You’ll almost for sure have to do that if you go the fidelity managed route anyway. There’s nothing wrong with having somebody manage your investments. If you were 30 I would not recommend eating a 1% fee for 50 years but if you’re really that uninterested and think you won’t live for decades it’s not a terrible idea. 1% for a decade does add up to around 10% of your money over a decade though, or roughly one year of gains. Only you can decide if that’s a price you’re willing to pay. Fidelity is awesome and I’ve used them for 25 years, but never had a managed account. What sort of services do you get for their fee? Do they help with comprehensive financial planning, tax advice, etc? If they do all that then it sounds like an easy yes for you. |
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Give the dude 10% as a "tryout." See how he does over 12 months compared to whatever benchmark you agree on - Dow, S&P, etc. If he does well, give him the other 90%. Make sure you factor out his fees/commission/whatever when you're calculating the return. If he's really honest, he should be willing to walk you through and explain it. That's what I did with my current guy, even though we were friends first, before I even knew he worked at MS. Now he manages a little over $600k of my money. Blurry phone image because MS app doesn't allow screenshots. Attached File |
Posterity! You will never know, how much it cost the present Generation, to preserve your Freedom! I hope you will make a good Use of it. If you do not, I shall repent in Heaven, that I ever took half the Pains to preserve it.---John Adams
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The Fidelity advisor is not going to beat your average rate of return without increasing your risk. Then you have to pay 1%, so your real rate of returns are even less. In my opinion, the only reason to do this if you want to pay someone to help you with tax questions, estate planning etc. Assuming that they will do this for the 1%. |
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Originally Posted By MarkBinSC: The Fidelity advisor is not going to beat your average rate of return without increasing your risk. Then you have to pay 1%, so your real rate of returns are even less. In my opinion, the only reason to do this if you want to pay someone to help you with tax questions, estate planning etc. Assuming that they will do this for the 1%. This is exactly why I have avoided going with a managed fund. 1% is a lot of money. You all have me re-thinkng this. I may leave it in Fidelity 401K employer account or just roll it into an IRA with them |
Behave Yourself
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I retired last year just before 60. On paper leaving it in 401k was the best investment plan but after 26 years at that company and seeing all kinds of sketchy if not illegal things I wanted it in my control. I already had a Vanguard IRA so I transferred it to that with no tax or penalty. |
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Originally Posted By Morgan321: For now I’d roll it over into a rollover ira at Fidelity and invest in the same things you’re invested in now. No tax implications and you’re no longer limited to the rules and choices of the 401k plan. See above. Also once you're no longer employed some 401k plans start charging management fees. |
Heller II - Challenging DC's bans on semi-automatic rifles, large-capacity ammunition feeding devices, and its onerous and expensive handgun registration process. http://www.HellerFoundation.org/
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Originally Posted By Utahshooting: This is exactly why I have avoided going with a managed fund. 1% is a lot of money. You all have me re-thinkng this. I may leave it in Fidelity 401K employer account or just roll it into an IRA with them Originally Posted By Utahshooting: Originally Posted By MarkBinSC: The Fidelity advisor is not going to beat your average rate of return without increasing your risk. Then you have to pay 1%, so your real rate of returns are even less. In my opinion, the only reason to do this if you want to pay someone to help you with tax questions, estate planning etc. Assuming that they will do this for the 1%. This is exactly why I have avoided going with a managed fund. 1% is a lot of money. You all have me re-thinkng this. I may leave it in Fidelity 401K employer account or just roll it into an IRA with them Hey Utahshooting, I'm at Fidelity and the wife and I are currently in the process of "hiring" a local firm that my Fidelity rep recommended. Basically I'm at a point where I want to start taking a "salary" from my nest egg. I'm down near St. George but know for a fact they have a SLC presence as well. I've been very impressed with this company and their game plan. The fee is less than the 1% that the normal Fidelity advisor fee. This firm helps set up the game plan to handle the logistics of all of this. They also have access to some Fixed Income investments and other products that you would not have access to going the other route. These are products that as part of an overall plan can help lower the volatility of your portfolio. Their "average risk" portfolio, which is a third less volatile than the SP 500 index fund portfolio has a 8.25% historical average. The fee includes doing the taxes and access to their accounting people to help efficiently coordinate your entire tax strategy. Everything stays at Fidelity, in the same accounts but this firm is provided the access to make the trades to implement the plan. We can fire them at any time. Ping me off line if you would like more specific information. |
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Move it to an IRA. If you like that guy and get a good feeling from him, ask for references, average returns, how much money he personally manages. How long he has been doing this. How many people have taken their accounts out of their management and why. If after all that, you are still good with this guy,make sure you are on the same page about risk tolerance and let him manage the account. Go live your life as best you can, knowing someone else is taking care of the money. Check your account from time to time but focus on the time that you have left. |
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I have two different money managers, and they both charge 0.75%. Neither work directly for Fidelity, but one uses the Fidelity platform and I can see everything it's invested in, but can't personally buy or sell in that IRA. I have my own brokerage account with Fidelity and have full control of it. It's mostly a savings account and I do a little day trading in it. I'm 20 years younger than you, but if I didn't treat this like a hobby, I would have someone manage everything. But I know that will cost you over the long run. |
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Originally Posted By MarkBinSC: The Fidelity advisor is not going to beat your average rate of return without increasing your risk. Then you have to pay 1%, so your real rate of returns are even less. In my opinion, the only reason to do this if you want to pay someone to help you with tax questions, estate planning etc. Assuming that they will do this for the 1%. We are at Fidelity. We are in the process of finalizing our financial gameplan (withdraw strategy) with a Financial Planning company that was recommended by Fidelity. The fee is sub 1% for the amount of money we plan to put under management. They have some investment options available that can help reduce the overall portfolio risk. (reduce the beta of the portfolio, so less volatile than an index) Also included in the fee is tax planning and preparation and estate planning recommendations. I understand investing pretty well but absolutely see the value due to the additional investment choices and the overall planning that I don't have to do. |
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1. Roll it out of the employer sponsored 401k plan and roll it into an IRA. UNLESS - your employer does not charge you a management fee once you seperate, AND you have access to funds in the 401k that you like, that are not accessible or much higher fees outside of the 401k. Both of those are rare. Originally Posted By Utahshooting: I am NOT financially savvy Originally Posted By Utahshooting: I have zero interest in finance or investing and that will not change. Originally Posted By Utahshooting: Im leaning towards hiring him to manage account. Based on what you said above - you should hire SOMEONE. However, I'd never pay 1% to anyone unless the financial advisor offers tax planning, tax distribution optimization, Roth conversion simulations and direction, asset allocation planning, Social Security planning, and estate planning. |
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I have self managed my 401k/IRA for my entire career. Three years ago I switched jobs and rolled over the 401k to IRA with Fidelity. They convinced me to setup a managed account. I know...S&P500 fund bla bla bla, but I decided to try it. It is doing well, but everyone does well in a bull market. I expect the real payoff to be in a bear market. I am not saying you should have it managed, just that I did and it is working out so far. |
If you don't have a plan, you can't change it.
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Originally Posted By Ironmaker: I am not saying you should have it managed, just that I did and it is working out so far. |
Moderate-Length Barrel Evangelist
Joined:
Jun 2022
Posts:
4605
EE: 100% (11)
USA
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Originally Posted By Skar: I retired 2 years ago put 60% in VOO ETF ( S&P 500 fund ) other 40% CDs when they we’re paying 5% then 4% . Today looks like 3.8 % so I gotta figure out what to do with my safe money. I guess a high dividend fund? There’s probably a lot of high-dividend funds that I’m not familiar with, but the ones I’ve looked at all have had lower risk adjusted returns in the last 10yrs vs VOO. And lower returns in general. They’ve had similar max drawdowns and volatility. One has had larger max drawdown, by a lot. I’m not convinced that they’re any “safer” than SP500, despite attenuated performance. |
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Originally Posted By Skar: I retired 2 years ago put 60% in VOO ETF ( S&P 500 fund ) other 40% CDs when they we’re paying 5% then 4% . Today looks like 3.8 % so I gotta figure out what to do with my safe money. I guess a high dividend fund? Depends on how soon you want to use the cash and how necessary the cash is. If you have plenty of money without it I’d let it ride. If it’s essential to your budget in the next few years then I’d be looking at something less risky. Like guy above said, dividend funds aren’t necessarily less volatile(ie safer). Even if they are, you’ll simply lose less in a market downturn as opposed to something with inverse correlation that would go up in a downturn. |
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Originally Posted By MarkBinSC: The Fidelity advisor is not going to beat your average rate of return without increasing your risk. Then you have to pay 1%, so your real rate of returns are even less. In my opinion, the only reason to do this if you want to pay someone to help you with tax questions, estate planning etc. Assuming that they will do this for the 1%. The Fidelity Advisor keeps emailing me saying that my position is too aggressive. I use Fidelity for a few retirement accounts that I had forgotten about over the years and recently found. Rolled them all in and found the highest return investments and just let it ride. I've been getting around 30-40% over the last few years on money I had completely forgotten about. Thinking of buying a nice RV once the kids leave the nest. |
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Originally Posted By sgtlmj: The Fidelity Advisor keeps emailing me saying that my position is too aggressive. ..........I've been getting around 30-40% over the last few years on money I had completely forgotten about. If they say you are too aggressive that may not be true from your perspective but I would verify that your investments meet your financial objectives. A potato could've made 20-30-40% per year for quite a few years now, but that market performance is abnormal and unprecedented. It's neither a safe nor rational assumption that it will continue indefinitely. |
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Originally Posted By Skar: So for some one who is retired (67) how do I park my money . 50 + in s&p 500 ETF now where do I put my safe money . CD rates are down ………? I'm not an expert in the fixed income sector.... but my understanding is generally a mix of bond funds, treasuries, CD, cash..... it depends on the outlook and the return. BND is a decent intermediate bond ETF with a 4.15% yield, and should increase in value as interest rates decline. Cash in a MMF is still paying between 3.9 and 4.2% and treasuries are similar. CD rates are based on projections.... and projections are lower in the future, which is why non-callable CD's are 3.6-3.75%. |
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Originally Posted By Utahshooting: This is exactly why I have avoided going with a managed fund. 1% is a lot of money. You all have me re-thinkng this. I may leave it in Fidelity 401K employer account or just roll it into an IRA with them I have a 401k at Fidelity. Their funds suck except for the fund for stock of the company I work for which has been kicking ass. I rolled out everything I could to a brokerage account. When I retire I will move the rest. There are a lot of advisors that want 1%. The last yokel I talked to wanted 1.5%. They only talk about "up to 10%/yr", or, if they are expecially slimy, they just say "10%/yr". They don't talk about the 4% guaranteed which is not really guaranteed. |
N&MEM, SSDR, NRA Life Member
Epstein Scalia did not kill himself.
Gun control is literally Hitler.
Trump's actions? Watergate does not bother me, does your conscience bother you?
Gun control is literally Hitler.
Trump's actions? Watergate does not bother me, does your conscience bother you?
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Originally Posted By nvcdl: If you are retiring and not expecting to live long why wouldn't you be withdrawing money from your 401K? When i retired I moved all my 401k funds into an income fund and receive monthly payments from it. Easy peasy. What income fund please? |
N&MEM, SSDR, NRA Life Member
Epstein Scalia did not kill himself.
Gun control is literally Hitler.
Trump's actions? Watergate does not bother me, does your conscience bother you?
Gun control is literally Hitler.
Trump's actions? Watergate does not bother me, does your conscience bother you?
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Originally Posted By SteveOak: I have a 401k at Fidelity. Their funds suck except for the fund for stock of the company I work for which has been kicking ass. I rolled out everything I could to a brokerage account. When I retire I will move the rest. There are a lot of advisors that want 1%. The last yokel I talked to wanted 1.5%. They only talk about "up to 10%/yr", or, if they are expecially slimy, they just say "10%/yr". They don't talk about the 4% guaranteed which is not really guaranteed. What did you have invested in Fidelity that sucked and why did you feel they suck? |
"It behooves every man to remember that the work of the critic is of altogether secondary importance, and that, in the end, progress is accomplished by the man who does things."
Theodore Roosevelt
Theodore Roosevelt