The cost of financial advice and how that cost is calculated are hotly debated topics among financial professionals and the clients they serve. The most common fee structure is based on Assets Under Management (AUM). An advisor charges a client an annual fee equal to a percentage of the amount of investments they manage for…
Fee-only financial advisors are often touted as the most transparent and unbiased option for investment advice. They do not earn commissions and have a fiduciary duty to act in their clients’ best interests. However, even fee-only advisors have hidden costs and conflicts that can chip away at your investment returns over time. 1. The True…
You enter your income, expenses, investments and liabilities into your favorite retirement planner. You click a button, the software does some kind of calculation, and out pops a single number. It may be 87%. Maybe it’s 72%. Or it could be 15%. Whatever the number, you’re told it represents your retirement plan’s “Chance of Success.”…
There are a lot of good reasons to hold cash, especially for those in retirement. An emergency fund is a must. And retirees need to keep a certain amount of cash for spending since paychecks have stopped or been reduced. Whatever the reason, the big question is where can earn the most interest on your…
TL;DR Retirees have up to three types of accounts to draw from in retirement: traditional retirement accounts, Roth retirement accounts, and taxable accounts. Each account type is taxed differently. By choosing which accounts to draw from each year, retirees have the flexibility to manage when they’ll pay taxes and how much they’ll pay. The traditional…
Many in retirement seek investments with high income. Whether interest, dividends, or both, retirees value the ability to spend income from a portfolio without the need to sell shares of the investment that generates the income. This sentiment was reflected in an email I received from a viewer of my YouTube channel: “How about a…