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Author: jwilson Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76385  
Subject: FIXED INC SEC IN PORTFOLIO Date: 2/17/1998 9:29 AM
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I am a 56-1/2, married with a house that will be paid for in 4 years. My company will be offering an early retirement plan effective 6-30-98.

In preparation, I have contacted several financial planners. I have been disappointed, to say the least, with the suggestions I have received.

All of them recommend that I keep 40-50% in fixed income securities yeilding 6-7%. I don't think I am greedy, but that seems to be a little too conservative.
I don't need the money for 7-8 years, as the company has offered me a guaranteed 7 year contract making more than I currently make, although I would be an independent consultant (I like that idea). Health ins would be covered under the retirement plan, so no expenses there.

I feel like putting the money into funds that pretty much cover the major markets would be much more agressive, yet not too risky (I am not scared of the risk since I will not need the money for a while). I think that Vanguard has some pretty good index funds that would give me the allocations that I need for diversity.

In addition, the financial planners want about $7,000 a year for all this good help they are giving me.

What do you think? Am I going off the deep end, or should I deep six these guys?
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1830 of 76385
Subject: Re: FIXED INC SEC IN PORTFOLIO Date: 2/17/1998 5:51 PM
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Jwilson,

<<I am a 56-1/2, married with a house that will be paid for in 4 years. My company will be offering an early retirement plan effective 6-30-98.

In preparation, I have contacted several financial planners. I have been disappointed, to say the least, with the suggestions I have received.

All of them recommend that I keep 40-50% in fixed income securities yeilding 6-7%. I don't think I am greedy, but that seems to be a little too conservative.
I don't need the money for 7-8 years, as the company has offered me a guaranteed 7 year contract making more than I currently make, although I would be an independent consultant (I like that idea). Health ins would be covered under the retirement plan, so no expenses there.

I feel like putting the money into funds that pretty much cover the major markets would be much more agressive, yet not too risky (I am not scared of the risk since I will not need the money for a while). I think that Vanguard has some pretty good index funds that would give me the allocations that I need for diversity.

In addition, the financial planners want about $7,000 a year for all this good help they are giving me.

What do you think? Am I going off the deep end, or should I deep six these guys?>>

You have a goodly length of time before you need to start using those funds, so I tend to agree you could be a mite more aggressive here. However, it's an individual decision based on your tolerance for the ups and downs of the marketplace. Your advisors are (I'm fairly certain) giving you the traditional conservative advise based on your age. But never forget that it's YOUR money, and if you want and can tolerate more risk and if you're confident in your own investment knowledge, go for it. IMHO you will make the best manager of your own money anyway.

And BTW, at $7K per year for their services, you better have a stash upwards of $900K or they are on the high side for money managers. I'll let you determine that.

Regards….Pixy




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Author: rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1852 of 76385
Subject: Re: FIXED INC SEC IN PORTFOLIO Date: 2/19/1998 12:07 AM
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<<I have contacted several financial planners. I have been disappointed, to say the least, with the suggestions I have received.....In addition, the financial planners want about $7,000 a year for all this good help they are giving me.>>

Go back and read the 4-part posting I did last year about "draw down in retirement". That should give you something to start thinking about. The numbers are probably off, but the concept isn't.

And, heck, I'll only charge you a one-time fee of $7000. You can just drop me a check in the mail. I'll go out to the mailbox and wait for it. ;-)

Regards,
Ray

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Author: tedferg Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1915 of 76385
Subject: Re: FIXED INC SEC IN PORTFOLIO Date: 2/22/1998 6:32 PM
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I read Ray's drwdown posts - seems S&P500 would not support an 8% draw and only UV2 would - accepting that then, is there any merit discussing the other portfolio's ?

BTW are UV strategies described in TMF Invest Guide ?
I got the TMF Investment Guide Workbook by mistake, not realizing the guide is a separate book - off to the bookstore again :-)

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1916 of 76385
Subject: Re: FIXED INC SEC IN PORTFOLIO Date: 2/22/1998 6:41 PM
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Tedferg,

<<I read Ray's drwdown posts - seems S&P500 would not support an 8% draw and only UV2 would - accepting that then, is there any merit discussing the other portfolio's ?

BTW are UV strategies described in TMF Invest Guide ?
I got the TMF Investment Guide Workbook by mistake, not realizing the guide is a separate book - off to the bookstore again :-)>>

Any portfolio is worth discussing. It just depends on what issue is involved as to the answers or comments you will receive.

The UV strategies are not discussed in TMFIG. They are, however, over in the Dow area.

Regards.....Pixy

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