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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!
The numbers are reasonable but probably didn't explain it very well if you came away from the meeting thinking it was insane
Depends on where the money is being invested, rate of return, etc. Find me on LinkedIn so we can chat.
Commission
You'll be able to throw a hell of a going away party!
I have no idea what the post is about and what everyone is saying. Just came here to see the comments. Got email notification…..
Not insane. But you need to understand these numbers better. $68m at death sounds like "future money" with inflation factored in. $13k/mo at retirement sounds like "current money" without inflation. 6.6% compound growth also sounds like inflation is factored in. With 20+ years to retirement, you need to understand the impact of inflation. I agree with others that you likely can retire in your mid-50s with low risk. Also, dying with a $68m estate seems silly and actually too much for your kids when they are already adults with well-established careers of their own.
I agree that that's late in life to leave kids with that much money, but I'm not averse to giving it to kids earlier. I would just start a gifting program much earlier on. Start paying for educational and medical expenses directly to avoid using up annual or lifetime exemption. If you've got appreciating assets, start getting those out of your estate now so they can start growing estate tax-free.
Primary assumptions:
You continue to earn combined income of $400k or more (uninterrupted) for the next 24 years which is statistically unlikely.
Your portfolio earns a consistent rate of 7 to 8%(+) over the next 24 years which is also unlikely relative to systemic global changes over the course of the next 20 to 30 years.
Unrealistic inflation assumption.
Find a way to diversify and grow your income sources.
Sounds like you just wanted everyone to know your net worth....
My advice as someone in similar shoes on DIY it (same age income basically but live in MCOL and work remote):
First handle risk, it's the biggest threat/unseen:
1. "True Own-Occupation" Disability Insurance - Look into this. It's pricey but it is true insurance and let's you invest/retire more aggressively. It covers the what if scenario of you get disabled, and likely lose your high income. Plus LTD won't pay out if you can still work a min wage job like mopping floors but can't work your high end partner job at a law firm because of cognitive hit from a car crash.
2. Do not get any life insurance lol.... you can afford a funeral and it won't pay out unless you DIE, it doesn't pay out if you become near dead/injured and can't earn... if you must get TERM only, NOTHING with the word whole in it.
Now how to get max returns:
1. Cut spending early (now) so you can invest more.
2. Only invest in stocks, let the smartest people in the world run businesses for you. You can do some bonds/gold/crypto to counter balance but you should be in stocks AT LEAST 80%
3. PRETEND TO BE DEAD - the best investors are dead, they don't touch their account.
That's it, you can DIY it yourself if you have discipline and can control your emotions involving money. Being autistic helps.
Why would you not get life insurance if people rely on your income? Reckless.
Term is easy, cheap and transparent product.
I would ditch the financial advisor. I make similar money all up with my wife and we are sitting on at least $5mill of investments which I did in my own. I spoke with several advisors along the way and just moved on. They are mostly a waste of time. You could be retired by 50 living Asia and enjoying life
You’ve said nothing of life insurance policies which can be a very good tax planning tool. Also, it doesnt seem that anyone has thought of the possibility that long term care might be needed for OP, OPs spouse or both. While Medicare will kick in, Medicare doesn’t cover any LTC needs. Families must pay out of pocket unless the care patient qualifies for Medicaid - highly unlikely with significant market holdings. My family is dealing with this now and thr least we’ve paid for care in a facility is 7k the most we’ve paid is 14k. The numbers are for places in Texas with great care but without a ton of amenities. In HCOL areas, memory care/assisted living in places like CA, DMV, the northeast are the been pricier.
And at 1% advisory fee, his annual income from your portfolio will be $680k, $720k, or $1.1mm at the time you die. Sweet deal!
lmao, advisors don't charge 1% on that amount. It would be closer to 0.30%-0.45%. Still a solid amount, but not 1%😂
Find some real problems. Most of the country will never be able to afford a house or retirement. And you're here whining about the most non issue of all time? Get a grip man.
Subject Expert
How much do you pay in tax, spend, and save per year now?
How much do you intend to spend in retirement?
When would you like to retire?
As some of the folks mentioned check out the fees and whats the guarentee that your investment wont go negative even if market falls this is risk we always have. Explore IRC7702 code which protects your life, wealth, accumilates and disbursement or legacy transfer in case you dont use it.
The Govt will be very happy when you die.
This advisor is obviously not a Christian because there is no factor of God in there or giving..
Mate...with your numbers, no sensible financial adviser would recommend you work until 64...that's crazy. I'm 52, wife is 50, we make.a combined $270k and like you we have $1.3m in retirement and $210k in home equity. We plan to retire in 10 years max and project ending up with $2.5m. You will definitely be able to "hang up your boots" at 50.
@Client Partner feel free to email me at harper.leah67@gmail.com. My mentor and I will be happy to get you on level ground with your investments and your legacy!
ever heard of Fugazi?