financial advisor here taking your q's
| Frisky Persian | 05/23/19 | | diverse chad | 05/23/19 | | Frisky Persian | 05/23/19 | | diverse chad | 05/23/19 | | Frisky Persian | 05/23/19 | | diverse chad | 05/23/19 | | Swashbuckling Thirsty Dysfunction Philosopher-king | 05/23/19 | | Orchid Hyperventilating Stage | 05/23/19 | | Frisky Persian | 05/23/19 | | Impressive market | 05/23/19 | | Frisky Persian | 05/23/19 | | diverse chad | 05/23/19 | | Beta Ceo Karate | 05/23/19 | | Frisky Persian | 05/23/19 | | Beta Ceo Karate | 05/23/19 | | Frisky Persian | 05/23/19 | | Carnelian Bawdyhouse | 05/23/19 | | Frisky Persian | 05/23/19 | | bipolar soggy ratface ladyboy | 05/23/19 | | Frisky Persian | 05/23/19 | | poppy preventive strike | 05/23/19 | | gay institution faggotry | 05/23/19 | | Frisky Persian | 05/23/19 | | poppy preventive strike | 05/23/19 | | Frisky Persian | 05/23/19 | | buck-toothed honey-headed water buffalo | 05/23/19 | | Frisky Persian | 05/23/19 | | buck-toothed honey-headed water buffalo | 05/23/19 | | Frisky Persian | 05/23/19 | | buck-toothed honey-headed water buffalo | 05/23/19 | | Frisky Persian | 05/23/19 | | buck-toothed honey-headed water buffalo | 05/23/19 | | Frisky Persian | 05/23/19 | | buck-toothed honey-headed water buffalo | 05/23/19 | | Frisky Persian | 05/23/19 | | Carnelian Bawdyhouse | 05/23/19 | | Frisky Persian | 05/23/19 | | well-lubricated black coldplay fan theater | 05/23/19 | | Swashbuckling Thirsty Dysfunction Philosopher-king | 05/23/19 | | Frisky Persian | 05/23/19 | | Swashbuckling Thirsty Dysfunction Philosopher-king | 05/23/19 | | Frisky Persian | 05/23/19 | | Odious Plaza Indirect Expression | 05/24/19 | | heady pontificating trailer park crotch | 05/23/19 | | Swashbuckling Thirsty Dysfunction Philosopher-king | 05/23/19 | | Frisky Persian | 05/23/19 | | self-absorbed sanctuary useless brakes | 05/23/19 | | Frisky Persian | 05/23/19 | | self-absorbed sanctuary useless brakes | 05/23/19 | | Violent Flushed Doctorate Pocket Flask | 05/24/19 | | self-centered marvelous parlor | 05/24/19 | | drunken gay wizard | 05/24/19 | | Cruel-hearted Geriatric Box Office Deer Antler | 05/24/19 | | opaque bat shit crazy den | 05/23/19 | | Onyx Legal Warrant | 05/24/19 | | Chrome field trust fund | 05/24/19 | | poppy preventive strike | 05/23/19 | | Frisky Persian | 05/23/19 | | poppy preventive strike | 05/24/19 | | self-absorbed sanctuary useless brakes | 05/24/19 | | poppy preventive strike | 05/24/19 | | self-absorbed sanctuary useless brakes | 05/24/19 | | poppy preventive strike | 05/24/19 | | self-absorbed sanctuary useless brakes | 05/24/19 | | poppy preventive strike | 05/24/19 | | flickering love of her life | 05/23/19 | | Frisky Persian | 05/23/19 | | flickering love of her life | 05/23/19 | | turquoise factory reset button | 05/23/19 | | Frisky Persian | 05/23/19 | | turquoise factory reset button | 05/23/19 | | Frisky Persian | 05/23/19 | | Odious Plaza Indirect Expression | 05/24/19 | | Razzmatazz nighttime pit place of business | 05/23/19 | | Frisky Persian | 05/23/19 | | Razzmatazz nighttime pit place of business | 05/23/19 | | Frisky Persian | 05/23/19 | | Razzmatazz nighttime pit place of business | 05/23/19 | | Frisky Persian | 05/23/19 | | Violet exciting partner stag film | 05/23/19 | | Frisky Persian | 05/23/19 | | Razzmatazz nighttime pit place of business | 05/23/19 | | Razzmatazz nighttime pit place of business | 05/23/19 | | vivacious chapel blood rage | 05/23/19 | | Frisky Persian | 05/23/19 | | Violet exciting partner stag film | 05/23/19 | | Frisky Persian | 05/23/19 | | Violet exciting partner stag film | 05/23/19 | | Frisky Persian | 05/23/19 | | drunken gay wizard | 05/25/19 | | Bateful space double fault | 05/23/19 | | Frisky Persian | 05/23/19 | | Bateful space double fault | 05/23/19 | | Frisky Persian | 05/23/19 | | mahogany excitant voyeur dragon | 05/24/19 | | Bateful space double fault | 05/24/19 | | self-centered marvelous parlor | 05/23/19 | | Frisky Persian | 05/23/19 | | self-absorbed sanctuary useless brakes | 05/23/19 | | Frisky Persian | 05/23/19 | | Obsidian sinister alpha | 05/23/19 | | Frisky Persian | 05/23/19 | | Razzmatazz nighttime pit place of business | 05/23/19 | | Frisky Persian | 05/23/19 | | Obsidian sinister alpha | 05/23/19 | | Frisky Persian | 05/23/19 | | Razzmatazz nighttime pit place of business | 05/23/19 | | Razzmatazz nighttime pit place of business | 05/23/19 | | Trip Sexy Casino Famous Landscape Painting | 05/23/19 | | Frisky Persian | 05/23/19 | | bipolar soggy ratface ladyboy | 05/23/19 | | Frisky Persian | 05/23/19 | | bipolar soggy ratface ladyboy | 05/23/19 | | Frisky Persian | 05/23/19 | | flickering love of her life | 05/23/19 | | Frisky Persian | 05/23/19 | | flickering love of her life | 05/23/19 | | Frisky Persian | 05/23/19 | | flickering love of her life | 05/23/19 | | Onyx Legal Warrant | 05/24/19 | | flickering love of her life | 05/24/19 | | galvanic zippy foreskin | 05/23/19 | | Frisky Persian | 05/23/19 | | Vengeful hospital | 05/23/19 | | Frisky Persian | 05/23/19 | | Vengeful hospital | 05/23/19 | | Frisky Persian | 05/23/19 | | Vengeful hospital | 05/24/19 | | Frisky Persian | 05/24/19 | | Deep multi-colored public bath | 05/24/19 | | Slate nudist indian lodge ape | 05/24/19 | | drunken gay wizard | 05/24/19 | | drunken gay wizard | 05/24/19 | | Abnormal Clear Hall Cuckoldry | 05/24/19 | | Frisky Persian | 05/24/19 | | coral aphrodisiac school potus | 05/24/19 | | drunken gay wizard | 05/25/19 | | self-centered marvelous parlor | 06/18/19 |
Poast new message in this thread
|
Date: May 23rd, 2019 7:28 PM Author: Frisky Persian
preferreds exhibit "tail risk" type volatility in that in most scenarios they don't move around much, but when the market goes to hell they sell off hard (see q4 18).
that said, the big banks are highly capitalized so their true risk is far lower than it was historically. spreads are still attractive due to psychic scars from the financial crisis.
you don't want to go out and buy them yourself, though. i like pimco preferred capital securities pfinx.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38279651) |
|
Date: May 23rd, 2019 7:36 PM Author: Frisky Persian
many preferred stocks are perpetual. the termination of a non-preferred stock is often done at a time that screws you over the most, so going with non-perpetual preferreds offers no real safety advantage.
you don't want to buy direct for a few reasons:
1) diversification
2) the illiquidity and occasionally the complexity of the securities makes them more prone to mispricing than liquid stocks. and as a lay person you're more likely to be screwed than to do the screwing.
3) convenience
as a general rule, you want to avoid buying individual securities unless they are extremely liquid (say, treasuries).
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38279684) |
Date: May 23rd, 2019 7:30 PM Author: Beta Ceo Karate
Made >30k for first time three years ago.
I max out 401(k) with match --> Target Funds
Backdoor Roth each year --> 80% tax inefficient ETFs/20% world bond ETF
Rest --> Roboadvisor w/ harvesting
Enough cash saved for 6 month emergency.
Not looking to make a significant purchase in the next two years.
I drive a Pontiac Vibe.
Thoughts?
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38279660)
|
|
Date: May 23rd, 2019 7:40 PM Author: Frisky Persian
401(k) is fine
not sure if you need to do a backdoor roth unless your income is above the limit.
most robo-advisors are crap. just do it yourself. think about all your accounts as one giant portfolio. you want to put your tax inefficient but highest returning stuff in a roth, bonds in a tax-deferred account, and equities in taxable (or roth).
world bond funds are crap. you're getting a 2.5%-ish yield with very long duration. just buy short-term bonds (like treasuries) that offer 2.4% yield and CDs that can offer 3% or more.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38279713) |
|
Date: May 23rd, 2019 8:15 PM Author: Beta Ceo Karate
Thanks.
Salary is too high for Roth, so I backdoor.
Mechanic wants $600 for a new clockspring for the Vibe. What do I do?
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38279933) |
|
Date: May 23rd, 2019 7:47 PM Author: Frisky Persian
here's how i'd think about it:
1) what's the worst-case scenario if you make the switch? how tolerable is that scenario? if you need a lot of money to maintain your lifestyle and perhaps most importantly keep your wife happy, the start up opportunity has to be damn good.
you should expect most start ups to fail and most equity you get to be worthless.
sadly, many women will resent their husbands if they stop bringing in the dough. so consider how strong your relationship is and how much your wife is willing to sacrifice.
2) what are you giving up? if your job is awesome and you aren't particularly driven to change the world/amass great wealth, not sure going the start up route has the best expected return.
3) how reversible is the decision? if you can jump back into a high-paying job, that makes the choice a lot easier. i know biglaw doesn't really give you that option.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38279772) |
|
Date: May 23rd, 2019 7:56 PM Author: poppy preventive strike
I've never seen an industry more replete with legalized fraud than the financial adviser industry.
Case in point, a friend of a friend wanted me to look at his financial statement. It was 50/50 into QQQ and SPY. I was like, "Ok, so your adviser split it between the NASDAQ and S&P. Is that what you wanted?"
He says, "I don't know. I told him to put it 50% of it into something safe and conservative and the other 50% into something aggressive."
"What % are you paying this guy?"
"2%"
I just laughed. I told him he could have done this these two investments on his own and it wouldn't have cost him anything and there's nothing "conservative" or "safe" about investing in QQQ or SPY. They're just your bread and butter indexes.
About 2 years ago, I knew a guy who gave some Merrill Lynch guy $500k to invest in fairly safe stuff. All the adviser did was buy bank CDs with it. lol
I feel like 90% of the industry is total fraud and then there's like the 10% who are actually good and honest.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38279807) |
|
Date: May 23rd, 2019 7:55 PM Author: Frisky Persian
this is hard to say without knowing the nature of your job, assets, liabilities. if you're in a cyclical business, you want less risk.
a good rule for equities is that you should be willing to tolerate a 50% loss (because it WILL happen). so take whatever money you're thinking about putting in equities, halve that number, and ask yourself if you can live with that loss.
starting in q3 i've shifted more of my clients' assets into low-vol stock funds. usmv, efav, eemv are three good ones. keep in mind they're sensitive to interest rates so if interest rates spike expect low vol stock funds to sell off a bit. but over a market cycle, i think they'll do about as well as the cap-weighted indexes.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38279803) |
Date: May 23rd, 2019 7:47 PM Author: Swashbuckling Thirsty Dysfunction Philosopher-king
I work in finance, understand economics/investing, follow the markets and derive utility from selecting and monitoring investments (ie its not something I wish someone else would do for me). In fact I’m confident I’m better off managing my investments vs handing it off to the dumb sounding guys that cold call me at work.
Why should I use a financial advisor? I feel like we have apps to manage and track long term savings and investment decisions. Not sure what other value they can add in my case
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38279767) |
|
Date: May 23rd, 2019 7:59 PM Author: Frisky Persian
most people as a general rule should avoid using advisors b/c most advisors are retarded and charge rapacious fees.
with that said, there is no way you know every way to optimize your finances in the way an expert could. so it's a matter of the fees being charged, the complexity of your situation (more complex generally means more opportunities for optimization that a layperson wouldn't know), and your ability to find an advisor that can offer enough value.
finally, there are people who can do a good job managing their own finances but are simply too busy to do a good job so they hire someone smart to do a lot of the heavy lifting for them. those are most of my clients.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38279827) |
|
Date: May 24th, 2019 1:13 AM Author: self-absorbed sanctuary useless brakes
yeah that $180 could happen, either way nice trade you're in good shape
I have my buy signal @ 39 lol
Might not be till ITE v2 though
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38281416) |
Date: May 23rd, 2019 8:41 PM Author: turquoise factory reset button
For the last several years, I've paid all bills, maxed out 401k, then put everything else into: 70% broad-based US funds (eg, vfiax), 20% low cost international funds, 10% bond funds. Should I do anything differently?
Goals: live comfortably even if I take a big pay cut in a few years, be able to retire comfortably in 20 years, pay for babydoods' expenses and college.
Stats: $400k HHI, might leave big law in a few years, which would reduce HHI to $200k, 2 babydoods, may have more
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38280056) |
|
Date: May 23rd, 2019 9:49 PM Author: Frisky Persian
are you doing a backdoor roth ira?
are 401k contributions roth or regular?
529 for the babies?
any debt?
might want to bump up your cash allocation and/or have at least 6 months of expenses in cash if you intend to get out of biglaw in a few years. biglaw is procyclical.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38280394) |
|
Date: May 23rd, 2019 11:11 PM Author: turquoise factory reset button
Thanks, bud. No backdoor IRA because I figure $38k in annual retirement contributions is enough and I want flexibility with the rest.
Used to split 401k contributions. Now all pre-tax because our marginal tax rate is so high.
Should start 529s but haven't. Good point.
Mortgage on nice house. Some remaining school debt we'll pay off this year.
Yes, maybe I should up cash or get some short term CDs. Job feels stable for now. Good use of procyclical.
Aside from bigger emergency fund and 529s, anything you'd change?
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38280856) |
|
Date: May 23rd, 2019 11:30 PM Author: Frisky Persian
you should still do the backdoor roth (assuming you don't have a traditional ira). you can withdraw your contributions penalty-free any time and only wait 5 years from your contribution to withdraw earnings penalty free.
keep an eye on mortgage rates in the coming months. long term interest rates have fallen so refinancing might save you big bucks.
if you're in a high income tax state like CA, instead of CDs buy short-term treasuries, which aren't subject to state income tax.
im sure there's a bunch of random stuff you could do but your overall asset allocation is sane.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38280963) |
Date: May 23rd, 2019 8:42 PM Author: vivacious chapel blood rage
How old are you and are you taking on new clients?
I do it all myself now (Vanguard), but as my savings grow and my situation gets more complex I think it would make sense to go to an advisor similar to yourself if only so I don’t spend time doing it anymore.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38280061) |
Date: May 23rd, 2019 9:48 PM Author: Violet exciting partner stag film
exeunt this thread is cr good content service synergy Thank. I have so many questions but am poisoned rn. But here are a few
- Using HSAs and an investment vehicle...flame?
- Non-retirement liquid assets, where should I stock them away (probably asked already)
- Breaking even, maybe a little negative (not including equity accumulation) on renting a single family home...first time landlording so I'll do it differently for next tenant. Even worth it?
- I've given up on doing my taxes are accountants flame?
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38280391) |
|
Date: May 23rd, 2019 10:09 PM Author: Frisky Persian
- Using HSAs and an investment vehicle...flame?
no. just use them as you would a roth. this assumes you're healthy and don't need to draw on the hsa any time soon.
- Non-retirement liquid assets, where should I stock them away (probably asked already)
what's the horizon and purpose?
- Breaking even, maybe a little negative (not including equity accumulation) on renting a single family home...first time landlording so I'll do it differently for next tenant. Even worth it?
you're probably charging too little in rent. check more carefully what the going rate for a similar home is. rents have risen quite a bit over the past few years.
you should also look into refinancing your mortgage. interest rates are falling and will continue to fall. could save some big bucks there.
i've avoided landlording as i don't want the hassle and i'm confident i can generate much higher returns elsewhere. whether it's worth it depends on your personal attributes/circumstances. i'd say landlording is best for people who are handy and have no problem being tough with deadbeat tenants.
- I've given up on doing my taxes are accountants flame?
no. a really good one can save you a ton of money and time. shop around as accountants can quote ridiculously different fees for the same filings. also ask if they have any competence in tax planning. lots of accountants are lazy and want to just act as tax preparers.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38280523) |
|
Date: May 23rd, 2019 10:47 PM Author: Frisky Persian
you're thinking about it backward.
first you should think about your overall asset allocation, the biggest decision being your stock/bond split.
then based on your overall target asset allocation, you allocate your assets across all your accounts as if they were one portfolio (setting aside stuff like saving up for a down payment, etc.), putting funds in the most tax-efficient locations.
a simple option could be to replicate your target retirement fund allocation in your roth.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38280739) |
|
Date: May 24th, 2019 12:58 AM Author: Vengeful hospital
i guess this is part of where i run into a perception issue. mass affluent still have significant estate planning needs, even if they don't have an estate tax issue.
my typical client is between $5M and $15M net worth (not investable assets, but overall net worth). that's pretty common in California.
i'll give just a few recent examples:
1) blended family, wife has significant charitable intent, husband has two kids from prior marriage. one of his two kids has creditor problems and is bad with money. net worth about $6M, with $3M in qualified accounts, of which $2M is wife's. wife is concerned that when she passes it benefits her alma mater. so we're creating a CRUT as bene of her qualified accounts, income interest to husband first, then shit stepson and good stepson, remainder to her alma mater.
2) two doctors married to each other. one is ob/gyn, so has even greater malpractice exposure. she has a partnership interest in her practice, along with two other docs. couple gave one of three daughters $200K for downpayment on a house. want to treat everyone fairly. practice owns valuable equipment as well as the building they occupy. so, transmute community into separate property for each. split off equipment and real estate into separate LLCs, which interests then go into SLATs. equalize for downpayment gift. buy/sell for other partners, fund with life insurance.
3) client's elderly father owns $2M property with almost no basis. gifts it to client years ago, for who knows why. client sees me, we create an irrevocable trust granting father lifetime right of occupancy and GPOA over property to get estate inclusion. father dies (after one year so avoid 1014(e)), $2M property receives step up, client avoids capital gains on $2M (~$800K tax savings).
that's without getting too much into asset protection, which is another important area to consider for clients with $3M+.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38281350) |
|
Date: May 24th, 2019 1:22 AM Author: Frisky Persian
by mass affluent i mean people in the $1m or less range, which is what most advisors target. not many advisors can grab $5m+ clients.
$5m to $15m is hnw/borderline uhnw
CRUTs are cr. amazing tax and life expectancy arbitrage vehicles.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38281451) |
|
Date: May 24th, 2019 4:21 PM Author: drunken gay wizard
I'd do the $30-$40K downpayment since you've got the money, personally, to avoid paying PMI, which is 1.75% (or in this case, $2625-$3500). FHA is 3.5% down, so the downpayment differential is $25-$33K. So basically you make a better than 10% "return" on that money by avoiding PMI, and it's a sure thing, unlike whatever investment option you might have for the money other than a downpayment.
If you really have big, lucrative plans for that money later, get a HELOC or something.
(http://www.autoadmit.com/thread.php?thread_id=4267925&forum_id=2#38284533) |
|
|