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Do I need an advisor? Is it worth it? Opinions needed on financial situation

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  • Do I need an advisor? Is it worth it? Opinions needed on financial situation

    So I'm on the fence; I've been doing a lot of research on my own but am wondering if it would be worth it in the long run to get some sort of comprehensive financial advice from a fee only advisor. The cost comes down to ~$5000/yr for the ones I liked recommended on this site.

    Here's what my husband and I got so far at 35yo:
    Joint Income: $565k-640k (graded increase within 3 yrs)
    EFund: $60k

    We have own occ disability, term, umbrella, auto/home insurance policies.
    Student loans: PAID
    Other debt: None
    Mortgage: $1.4M (vHCOL DC; buying this fall)
    So far ~$200k in retirement savings (dropped bc of the market)
    --Planning on saving 20% for retirement:
    --goal of $113k-$128k/yr;
    --by maxing out 401ks: $38k/yr and Roth IRAs: $12k/yr and starting to now build up a taxable account since student loans are paid off.
    529s for our 2 kids funded to the max for tax deductions in target-age/date funds

    Should I just stick with this plan or do I need a FA?

    Here's what I was thinking maybe an FA can help with (but not sure if it's worth it):
    -tax loss harvesting?
    -asset allocation (most money is in Vanguard Target date funds w an ER of 0.15%; some is in a Fidelity AUM target date w an EF of 0.65%; small taxable account is majority Vanguard target date and 20% VTSAX). Starting a new job and maybe this a good time to set a new asset allocation?
    -figuring out how much we actually need for retirment?
    -estate planning?
    -anything else you can think of?

    Would love to hear your thoughts about our overall financial situation and if its worth getting a FA for the above (or anything else). Is it worth the cost even though I think we know what we are doing? Thank you!







  • #2
    I don't think you need FA. You can get by with target fund or a 3 fund portfolio
    There are countless posts here on how much you need in retirement. Basically 25X your need minus SS ( but don't count on it)
    Estate planning - go to specialized attorney.
    Unless you want to pay a fixed one time fee to look over your investing / saving. But don't get a FA who charges AUM, which you have avoided it successfully so far.

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    • #3
      I don't think you need a FA at this point either. You don't really need to tax loss harvest but if you want you could open a taxable account at betterment where they do it for you. Certainly though you can afford to meet with a FA if that would make you feel better. But your situation isn't really complicated and you're on the right track.

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      • #4
        Snarky response to intentionally put your feet back on the ground.
        One thing stands out:
        Too much mortgage and too high of a cola.
        Now, reject that suggestion and say “no thanks”.
        A new job is not a reason for AA or TLH or estate planning.
        •WCI just did a blog on portfolio construction.
        •Post your portfolio and seek comments
        •You can for a FP or FA for either a plan or a portfolio review. You can do a review with a Fidelity rep for free.
        •Use and Attorney for will and estate planning.

        Seems like you actually listed some items on YOUR to do list. The TLH isn’t a big deal. Do it if you want or only on big drops. An FA is really pulling info from you. Beyond basic estate planning, an elaborate plan is a waste because the laws will change. A basic plan depends on your desires, use the attorney and keep it simple.

        You got 90% covered, the other 10% is the mortgage. That is your choice and perfectly acceptable. It doesn’t seem like spending for an FA in your situation adds any value.

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        • #5
          I agree with all of the above. If you really want someone to look over your portfolio, look up Rick Ferri’s service. He offers one time analysis of your portfolio and will give you some recommendations. WCI has interviewed him last year and he’s also written many books on investment. It was $500 well spent. Otherwise, you’re doing just fine. Don’t pay AUM.

          Comment


          • #6
            Originally posted by doctorbone View Post
            I agree with all of the above. If you really want someone to look over your portfolio, look up Rick Ferri’s service. He offers one time analysis of your portfolio and will give you some recommendations. WCI has interviewed him last year and he’s also written many books on investment. It was $500 well spent. Otherwise, you’re doing just fine. Don’t pay AUM.
            Agree. You are fine on your own. Stick with the 3 fund portfolio and/or maybe add REITs. Good luck with the beltway traffic!

            Comment


            • #7
              you are doing great, and that mortgage is acceptable given your income and lack of student loans and the fact that you're in the DC area (true a house isn't really a great monetary investment but if any area of the country won't suffer on housing due to depressions and recessions, it's the DC area...if you stay in the house for at least 10 years you're probably going to make a considerable capital gain on it which will be tax free as long as the gain isn't more than $500k).

              One thing considering your high income: either your or the spouse have a 457 plan? you could use some more tax-deferral space. look up articles on here about 457 plans. If you're in the DC area perhaps one or both of you work for governmental entities with 457 plans which make it less risky than a non-gov 457 plan. Do either of you get a match in your 401k? if so count that money towards your retirement savings. Finally, get the summary plan document for your 401k plans....read them carefully to see if you have access to the mega backdoor Roth. Again look up articles on this site about that and ask questions here. you don't need an FA

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