Thank youIt seems to be a consensus here that Ramsey's advice on getting out of debt is quite good, but his investment advice is dubious at best and harmful at worst. For example, suggesting an 8% Withdrawal Rate is sustainable, just shows a lack of understanding for sequence of return risk (8% is predicated on a fixed 11.8% "average" return for a 100/0 AA, but stock returns are anything but fixed at the average from year to year). He should be censured & fined by FINRA for such incompetent advice to any individual under paid advisement, assuming he's even a Registered Investment Advisor (RIA) and not just a talking head with no credentials, but popular with his followers.We selected the advisor based on a recommendation from the Dave Ramsey "Smartvestor Pro" website.If you have a $960K portfolio balance and pay a 1% Assets Under Management (AUM) fee for handling of your account, then that is about $800/mo. That 1% directly eats away at your total return (or an alternative perspective is that's taken from your safe withdrawal rate).One of my concerns, based on reading Mr. Bogle's book, is the cost of using an advisor. My calculation is that we will be charged about $800 per month on average for them to handle our account. That seems steep to me.
If you have a 30y life expectancy in retirement then the 4% rule from the Trinity Study applies. However, if you're paying a 1% AUM, then your true safe withdrawal rate is dropped from 4% to 3%, which is a quarter of your portfolio income in retirement. 1/4 of your portfolio income is indisputably a "steep" price to pay, but advisors get away with this because 1% of asset balance sounds insignificant to the uniformed investor (who likely doesn't have knowledge & confidence to manage their own investments, so they feel they "need a pro" and have no clue that pro is vampire-sucking the life out of their retirement portfolio's income).
Combining your 401k into your UBS account is fine if you can transition that account from advisory AUM to a self-directed account that has access to any listings on the US Stock Exchanges. Then you could buy Vanguard ETFs to make a simple, low-cost 3-Fund Portfolio using a combination of VTI, VXUS, and BND.
Statistics: Posted by dcmurray84 — Sat Nov 16, 2024 4:25 am