No. of Recommendations: 3
After last year's run-up in the stock market, my withdrawal rate for 2014 has fallen below 1%. I guess you could say I'm living comfortably on the money I'm not paying a financial advisor.


I am happy for you. There are many ways to make things work. I just think it is foolish to do an auto rejection of ways that include higher fees when it is returns net of fees that we need to focus on. I think it is also much easier for those of us who will not be pushing the 4% SWR. Having a lower withdrawal rate gives us more room for error, a better chance to recover from a negative event. We can take more risks while at the same time we do not have to take more risks. It is a nice place to be, and frankly we would not be retiring now if we were not going to be comfortably under 4%.

Our FP has earned a larger share of our assets over time, as he proved his ability to bring the returns, but he still only has about 2/3 of our non-real estate assets. It's not an all or nothing proposition. Working with a large institution, he has certain tools available to him at no cost to us that we simply can not duplicate on our own, but some of our own investments are worth holding onto as well.

I just simply do not understand the knee jerk rejection of a whole category of investing, simply because of the fees involved.

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