Related Posts
Does anyone have any insights on what a typical Sr. Associate Director makes at Boehringer Ingelheim? I have a range of 170-180k which I think is fair but don’t want to be underpaid. Also, any information regarding retirement planning or medical/dental benefits would be helpful. Haven’t gotten much out of HR. Thanks in advance!
Conversation Starter
More Posts
Additional Posts in FIRE Financial Independence Retire Early
Are investment properties good for retirement?
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Now model it without his 1-2% AUM fee.
Right
If you trust the calculations here (big if), I can’t understand the logic in an advisor telling someone to work until they’re 64 so they can die with mid to high eight figures in the bank.
I would think most people would want to retire earlier and actually enjoy retirement with a reasonable amount of savings.
Subject Expert
68-110 is not a wide range, for 52 years out!
If u make that much And save and invest Retire at 55 and travel and enjoy lifeee U dont no wen its over babes Live offf ur investment income And be happy I dont seee why people die w so much $$$$ Live it Spend it Beach Sun Goood Vibes
Leaving generational wealth
People always talk about fees, but there is so much data that shows working with an advisor results in an average 2-3% more growth than working without one. People don't know what they don't know and many times miss out on opportunities they'll never get another shot at, especially when it comes to being tax efficient. The vast majority of HNW households use a financial advisor, so you've got to ask "why"?
Fee objections will never go away, but in a world where DIY is so popular in everything from home renovations, auto repair, and even finance, professionals in those fields can usually tell and there is a reason for that. Of course, you have your outliers and overachievers, but that is not most people
Lol let’s compare the growth of VOO at a .03% expense ratio versus literally any financial advisor over a two decade period. 100% probability the financial advisors plan will offer lower returns and less growth over that period.
What is your annual spend that requires you to work until 64 to maintain?
Coach
His number on Healthcare is a little less than what I am paying now for a family of 4. When I move into our partner retirement plan, it will increase by around 40%. It will then decrease when the spouse and I hit Medicare, and kids roll onto their employer plans (they are in college now).
13k spend plan I assume is after taxes? I'm actively working on retirement planning (I retire in a year), and we are budgeting quite a bit higher, after taxes and medical insurance. Tax planning is an important consideration that I won't get into here.
The math might check out, depending on how they assessed the future market, but this seems like just basic modeling. You can likely do something basic yourself with tools at your brokerage. I still question some of the assumptions.
Healthcare coverage goes up with age. I have friends in their 60's paying 1200/ month for 1 person in California, so I don't think paying 1500/ month for 2 people is off at all.
What is weird is you dying with that much money....
I'd ask him to revise so you die with less money... and spell out how much less and see what he comes back with...
Did you ask him why he built in the expectation for you to continue working so much longer than the numbers indicate is needed? Did he suggest modeling with other factors? Was this a preliminary discussion? Definitely raises concerns.
OP, you know this advisor basically will take millions from you every year and you can only spend $186k right? What a sweet deal
Lots to unpack here but congrats on saving that much at 40. First, need to take into account your estimated living expenses at retirement. Second, factor in any pensions, including SS starting at 62. Then what you have left are variables that you need to figure out such as vacations, health, big expenses such as wedding. There’s a lot of great tools out there such as Fidelity that can help you model. But 64 seems a bit long to retire given your current excellent situation (unless you just enjoy working), as your 1.2 may compound by factor of 3 or 4 when you hit 50. As long as you have the right index funds with low cost where by 50, I would not be surprised that compounded growth may match or exceed your annual $ sooner than later. Congrats and keep up the good work.
Enjoy travelling and time with your kids Now!
Enjoy your money now and leave a little bit for the kids! Why are yall working so hard to enjoy your money when you're old, tired and dying???
Nominal dollars… and that’s not fire - more just max wealth generation and you can get to this math via online calc. Probably feels like 15M at death in the bank with expected inflation- nothing to scoff at. Do nothing with your money for for another 50 years and you’re looking at 25-30M. Your advisor isn’t helpful just running scenarios AI can do as well.
There are many ways to look at this, a common approach is as multiples of your expenses. A rough rule of thumb is 50 x expenses at 40 years old. As you get older you won't need as much since social security/medicare provides income or reduces expenses. With expenses of $150K and taxes of $120K that leave $130K for retirements savings and investment. In 10 years you would be well over $3M and with compounding a target of $5M at 58 would seem reasonable. There are many other factors like job happiness, health etc. I think 40 with 1.2M is a good start.
GSK 1
'50x expenses at 40 years old?"
Yes it sounds like a lot but if you have to live off savings for 40 years (80 year life expectance) what is a safe withdrawal rate ? If SSI is available then it will be at reduced rate as there will be no contributions for 20 + years before retirement. What happens if in the first 5 years there is a big decline in the market?
Obviously if you have other income streams to reduce your expenses the needed "nut" is less.
Don’t work until 64. Not point to die with so much money. I had similar conv. And I realized 10,20 mil while I am at 85 wont do me any good, espacially seeing my aging parents in their 80s. Your spend actually decrease after 67. Enjoy your money while u still have your health and energy. Die with 0:). I am in my late 40s, and has more saved in investments, and your math doesn’t seem to be right tbh, 100m is a lot.
Dang - those are pretty insane scenarios. How much does he have you saving?
Can you donate to my go fund me
Just move your funds into investments like XRP or bitcoin
Subject Expert
Hahahahaha
I'm in a similar position and have been using a retirement planning app called Boldin (www.boldin.com) to model my portfolio and look at the impact of various investment decisions, retirement dates, market scenarios, etc. It might be a helpful as a tool to validate the FA's advice and/or evaluate other scenarios on your own.
Question is why waste your prime years of your life now when in 25-40 years the whole world could change with wars, or viruses or anything unpredictable? You or your loved ones could get sick or you might not even make it to 64 or 90? Best to balance out life with living for the now and setting yourself up for being comfortable financially.
And what does he say about trying to keep some.of that out of IRS hands? If you don't have that much yet, start setting up structures to get it out of your estate now and letting it grow free of estate tax concerns