Can anyone recommend a good financial advisor in the Lexington area? Asking for a friend who is 58, has 600,000.00 in his retirement account and has no idea what to do with it.
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Can anyone recommend a good financial advisor in the Lexington area? Asking for a friend who is 58, has 600,000.00 in his retirement account and has no idea what to do with it.
Thank you. I’ve heard that annuities is the worst thing to do.I can answer the subject line question confidently: It depends. Most financial planners will walk through questions to determine what your monthly spend will be in retirement, how long you anticipate you need your savings to last, and come up with a figure.
If you want to retire soon your investment options should be somewhat limited to low return/low risk at this point. If you want to stick it out for 10 more years you (r friend) can probably grow that to 1M with something a little more aggressive/risky. Good luck. Choose a financial adviser that will encourage you to understand what you are buying and doesn't pimp exotic annuities and whole life policies and high-profit crap like that. Get a good book on retirement planning and read it.
Then many experts are completely out of touch, and virtually all Americans will not retire comfortably in the next couple of decades.The $1 million magic number for retirement will likely not be enough for most people. Many experts are suggesting closer to $2 million is what the majority of Americans need to retire comfortably in the next couple of decades.
My thoughts are if you start with 1M and take 5% (50K) every year and live a long life, you’ll probably run out of money before you die. If you take 4%, good chance you make it to the end and bounce your last check. If you take 3%, you probably have something to leave to your heirs.
Can anyone recommend a good financial advisor in the Lexington area? Asking for a friend who is 58, has 600,000.00 in his retirement account and has no idea what to do with it.
Yea, but won't you still be investing the money that you aren't withdrawing each year? Conservatively, your annual ROI should be what, 6-9%? So wouldn't you come out ahead each year it you only take 5% every year, but make 6-9% in returns?
Research and use low cost services like Vanguard and keep the extra points someone was going to take for information you can find for free.
Btw, I want 5% for telling you this.
Scary how many people.. in their 20's, 30's, 40's and 50's.. are woefully off the mark of $1mil, which yes, won't be enough. Makes you wonder if society is going to be forced to make some changes on how we retire.
The intriguing part for me is "how long will you live?". Life Expectancy may not be rapidly rising, but I think you'll see early/preventable deaths rapidly decline in the next few decades, raising raising the floor of early deaths, which will then raise our LE. Technology, medicine, etc.. will be huge factors in making sure we don't croak early, and also eliminate diseases/conditions.
I *hate* the idea of getting super conservative as you approach or hit retirement, and I think that’s antiquated, ignorant information. If you retire at 60, there’s a good chance you end up needing your $$$ to last as long or longer than you even invested in the first place.
If you put money in the stock market, it should be well diversified and stay there forever. Nobody “lost” money in ‘08, unless they were dumb enough to withdraw. For those that stayed in — their account has tripled.
Did you ever buy the duplex?
I made offer on two homes today. One is move in ready and the other needs about $40k in renovations to max out the rent.
That doesn't make any sense.
What about the people who were retired and living off their savings in 2008?
Uhhh....their savings would have been devastated for about a year, completely recovered in 18 months, then TRIPLED over the next decade.
Well I guess if they have 18 months to not incur any living expenses they're good to go.
Huh??
Dude. WTF are you talking about? If you leave your money in the stock market, it will be way up some years, and way down in others, but over the long haul you should see 8-10% returns. So long as you withdraw a steady amount below that, your investment is safe.
Math really isn’t THAT hard.
I *hate* the idea of getting super conservative as you approach or hit retirement, and I think that’s antiquated, ignorant information. If you retire at 60, there’s a good chance you end up needing your $$$ to last as long or longer than you even invested in the first place.
If you put money in the stock market, it should be well diversified and stay there forever. Nobody “lost” money in ‘08, unless they were dumb enough to withdraw. For those that stayed in — their account has tripled.
You don't take it all out at once. You take a weekly or monthly or yearly amount and leave the rest in. So while you may take a loss on the 50K you take out, you still have the rest of what you have invested rebounding from the losses. If you are counting on a small amount doubling every year and taking out half, that's not a retirement account, thats a bad gambling habit.
Or if you know you're going to NEED $50k in a certain time period, you put that in safe investments and let the rest ride.
It's absolutely mind numbingly stupid to argue someone who is at or near retirement should have all their eggs in the stock market basket.
As a financial advisor I would tell you that the only way to make a proper recommendation on what you need is to know your entire situation. I would strongly suggest finding someone who does financial planning, and sit down with them. Anyone who gives you a ball park figure without knowing your complete financial picture is not doing you any favors.