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I've been through two pretty big stock market bubble bursts: the 2000 dot-com boom and the 2008 subprime mortgage fiasco. In both cases I was broadly diversified in mutual funds, and in both cases I did not pull out of the market, but let things pretty much ride. They did come back in a pretty short period of time. FWIW I agree strongly with Rogue's argument about having much more than 60/40 in stocks (I'm talking US stocks here. International stocks have been disappointing for the past couple of decades, and are likely to continue to be so.) I'm 80 and retired, but don't need to live from my investments except for the RMD's. My advisor knows that my time frame is still long-term because I want to maximize my inheritance for the kids and grandkids. I'm about 70/30 in a broad range of US stocks. _________________________ “Remember, remember the fifth of November!" | |||
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Facts are stubborn things![]() |
Rebalance, Rebalance, Rebalance... Find your portfolio, and rebalance through volatility. Assuming you are buying quality investments, rebalancing at lows make sense. If you are buying the sexy fad of the day, you will lose your shirt eventually. All of this has gone on a tangent from the OP He has a pension that will pay him 60-80% - Most likely 80% of his top three to five years earnings if the pension is what I typically see. He has a 457b from a "former employer" so it can be rolled into an IRA. He has a very healthy brokerage account - to me mid 6 figures is 500k... He is in his late 30s... Ryan, 1. Get real close to that pension. Can you retire early and delay taking the pension? If you do, what is the end result? The math on that is of the utmost importance. 2. Fire the free advice. Find a CFP to help you. 3. You don't need a whole life policy unless you need life insurance. I hold a CLU. Look it up, I am an expert in life insurance and all the creative ways to use it. Do not buy a life insurance policy unless you understand exactly how you are going to use it beyond the death benefit. There are some really cool things you can do with life insurance, but from your message, I think the guy is selling you stuff not helping you. 4. Managed account for a 120k 457b rolled into an IRA - I assume he is going to charge you for the management. How much is it? Are you only getting Blackrock ETFs? If so, this is TERRIBLE advice. If you are going to pay for a managed account, you should find one that actually does the fund research and used all fund companies. But on 120k, I don't think you need a managed account. Why do you want to take it out of the 457b? 5. Mid six figure brokerage account??? That is very nonspecific. Assuming your brokerage account is after tax, how did you build that balance? Lots of contributions or incredible returns? How much in LTCG and STCG is in the account? What are you currently investing in? What is the tax ramifications of your brokerage account? Are you managing it with tax efficiency as a focus? What is your investment policy? How do you research investments now? What is your philosophy for buying and selling? How do you account for the tax ramifications of transactions? As you can see, I have a lot of questions that are actually more important than what you do with the 457b. My advice, find a CFP if you need help. And even though that is free advice, always assume free advice is paid for some way. The guy you are talking to is not doing the union or you any favors. His free advice is a way to generate income through selling other stuff... He is shady at best. FINRA's Website has a Brokercheck feature that will tell you all kinds of things about the person advising you. You should check it out. Do, Or do not. There is no try. | |||
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