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Thoughts on Financial advisors?

7,162 Views | 40 Replies | Last: 4 yr ago by SquareOne07
OasisMan
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babyshark said:

Simple W2 for me and wife
it depends on your current tax rate vs your projected tax rate in retirement
SquareOne07
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babyshark said:

Simple W2 for me and wife


Diversify yourself from a tax perspective and aim to have both, for two primary reasons:

- the unknown of your tax situation years from now, both from The Man as well as your own personal doing
- being forced to take withdrawals at 70 from and IRA/401k when you may not want to it it may not be prudent too
cjsag94
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OasisMan said:

babyshark said:

Simple W2 for me and wife
it depends on your current tax rate vs your projected tax rate in retirement


I think this is one of the biggest mistakes people make when evaluating long term savings plans. The only reason tl current taxes matter, with regards to retirement savings purposes, is if the current deductibility of your contributions affects how much you will be saving. In my experience, almost everyone saves the same amount regardless (fixed percentage of paycheck, legislative limits, etc.) And then they spend everything else. If you are saving more due to the deduction, then mathematically you are only better off by the spread between current and future tax rates. I defer to siding with the devil I know be the one I don't, unless extreme circumstances.

So, unless you are going to save more because you reduced your tax bill, then you will be much better off in the long run with a significant tax free income source in retirement.

FWIW, back to OP... This is the type of stuff financial advisors can help with, which can be life changing over long periods of time.
SquareOne07
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cjsag94 said:

OasisMan said:

babyshark said:

Simple W2 for me and wife
it depends on your current tax rate vs your projected tax rate in retirement


I think this is one of the biggest mistakes people make when evaluating long term savings plans. The only reason tl current taxes matter, with regards to retirement savings purposes, is if the current deductibility of your contributions affects how much you will be saving. In my experience, almost everyone saves the same amount regardless (fixed percentage of paycheck, legislative limits, etc.) And then they spend everything else. If you are saving more due to the deduction, then mathematically you are only better off by the spread between current and future tax rates. I defer to siding with the devil I know be the one I don't, unless extreme circumstances.

So, unless you are going to save more because you reduced your tax bill, then you will be much better off in the long run with a significant tax free income source in retirement.

FWIW, back to OP... This is the type of stuff financial advisors can help with, which can be life changing over long periods of time.


I love this post because it supports the idea that you don't need a half a million bucks to benefit from a financial advisor. Some of the most valuable things I do, that are awfully rewarding, are being able to teach and make sense of what seems to be pretty basic concepts. To those that don't understand them, a quick conversation can make a world of difference.
OasisMan
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cjsag94 said:

OasisMan said:

babyshark said:

Simple W2 for me and wife
it depends on your current tax rate vs your projected tax rate in retirement
...So, unless you are going to save more because you reduced your tax bill, then you will be much better off in the long run with a significant tax free income source in retirement...
this can be true for some, not others

ROTH can be a powerful tool, my wife and I max out the 12k/yr despite the tax consequences
Jack Pearson
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I have a family member who is 72 and recently retired. He refuses to talk to any financial planner or advisor as he claims the one he talked to a fidelity just tried to sell him an annuity.....I told him you need planning and tax advice. He has a few MM and still has decent chunks in straight stocks and in things that are too risky when he really needs to be protecting his nest egg...and figuring out the best way to do this in a tax advantaged way.
Very frustrating that I can not get him to talk to someone.

SquareOne07
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classof2019 said:

I have a family member who is 72 and recently retired. He refuses to talk to any financial planner or advisor as he claims the one he talked to a fidelity just tried to sell him an annuity.....I told him you need planning and tax advice. He has a few MM and still has decent chunks in straight stocks and in things that are too risky when he really needs to be protecting his nest egg...and figuring out the best way to do this in a tax advantaged way.
Very frustrating that I can not get him to talk to someone.




Sorry to hear about that...annuities aren't quite the 4 letter word in the planning world they used to be, but they're certainly not a go-to. I hope he can find somebody he trusts that will approach things from the standpoint of HIS best interest and not their own.
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