Javier,
Great job of stimulating discussion! I'm interested in responding to question 2, but first..
I'm on my third advisor. The first two we AUM based and CFPs, and I let them go because they didn't quite meet my needs. For less than a year now, I've been with a flat fee advisor and so far so good. I'm not sure my financial position is any better as a result, but I have learned a bunch as I head toward retirement in the next couple of years.
I think an important answer here revolves around the emotional feelings that people have about their money. This isn't a pretty picture, but I think it's true for many. Often we are our own worst enemy.
a. Men in particular, at times can behave very self-sufficient, unwilling to get help, and unwilling to admit that they made mistakes or bad decisions. Why would I want to present my most intimate financial details to someone who would belittle what I've done? I'm fine, I don't need any help.
b. Trust issues. There are countless stories of those (usually famous people like Billy Joel) who have been used and abused financially. If I give you access to my money why should I believe you'll do the best thing for me and not steal from me?
This is timely for me! We closed on our new house, halfway across the country on 4/18. We finally had our household goods delivered last Friday May 29, after a 10 day delay. That was costly. Right now I'm surfing HD while on the phone with AT&T who has been unable to set up Internet since 4/19. I work from home, so thankfully the hotspot on my phone has been effective. Just a few random drops. Unlike your efficient process, we continue to have partially unpacked boxes strewn across the home, and are dealing with associated stress.
Life is good!
Like others here, I have landed with a flat fee advisor. I worked with a couple of AUM advisors, and was uncomfortable with the value proposition.
I heard Morningstar's Christine Benz interview a representative from Abundo, and engaged one of their advisors. Not perfect, but good to work with. I have many questions, and they answer them all, and generally find the advice to be sound, often better than my own thoughts. They don't make any trades, I have to execute them myself, so every option has it's limitations.
With my kid's help, my wife would be more than capable of managing our finances in my absence, but it is comforting to know there is a trusted advisor who knows us, ready to help through uncertainty.
This is not an endorsement or suggestion that my flat fee advisor is better than any other, just a recommendation to consider flat fee as an alternation solution.
I have observed that things that used to be considered luxuries are standard or baseline.
My Dad was a music buff, he thought Karen Carpenter was the bomb. He returned from Vietnam and bought a new 1974 Dodge Dart and was just delighted to have an under-dash cassette tape player to listen to his favorite music. It was a luxury to him, one of few he allowed himself.
Now people feel that wired connectivity to the music apps on their phones just isn't good enough compared to wireless, but it's so much better than just a few years ago.
The proliferation of luxury features in our consumer mindset is a huge contributor to inflation. On many products, you can no longer find a simple manual system, everything is "smart."
I don't object to the development of labor saving features, I object to the dependence on it. I'm probably guilty of this like anyone else, but I miss the days where you had to WORK for the fancy stuff. Or just do without.
Boy you really kicked a hornet's nest here! Debt is a pretty serious subject to many here. And I expect we've all known folks that have been hurt by their debt. I had a HELOC for a long time, it was used to pay for a kitchen remodel. I was in no position to save up for it at the time. I retired the HELOC when I took out a second mortgage. That's a long story... IMHO, debt is a tool. Like any other tool there are right ways and wrong ways to use it. Generally, I'm opposed to debt, but I've used many 90-365 days same as cash loans, car loans, as well as the home loans. What I'm really opposed to are subscriptions. I despise paying a monthly or annual fee without any clear value being delivered (exception is a magazine or newpaper, those are great if you read them, and cancel them if you stop). In terms of the $50-75 annual fee to maintain it, that's pretty cheap. If you are conservative and only spend $4000/mo, $75 is 15 basis points. No way if that were a monthly fee. If you lose your job and think you need a loan to support your family, you should be darned sure that you are still employable. Bottom line for me is; If you don't know how or when you'll be paying back a loan, you shouldn't get one.
Hi Rob,
I'm hearing that you have too much income and pay too much taxes. Not really a problem in my view.
At 35% I wouldn't do a conversion either. I would want to find a way to reduce RMDs. It may be too late for you, but my best suggestion is to ramp up your gifting. In addition to charity, you can give a certain amount to others, for me it is my children. I think the max is around $30,000 each for you and your spouse per year. A small amount like that probably won't impact your tax bracket. I look at it that my residual funds will go to them anyway, and this reduces the potential tax bomb.
Of course, make sure to keep enough to cover your needs, especially long term care. Sorry, no criticism from me. Best wishes to you and your family.
John
HI Rachna,
My two cents.
I worked with a CFP who set up my accounts with Schwab. I was disappointed with the service, especially when it came time to leave. I have moved almost all my accounts (six of them) to Vanguard. I like using the website, I like the reporting, and I especially like the low management fees. Haven't really found I need the customer service because the web-portal is above average. I have moved to all ETFs after having a bent toward mutual funds for the last 20 years. I'm not yet retired, but months away, so I'm not exactly in your position. Due to planning complexities, I've wanted to have a planner looking at my portfolio. I've worked with two different planners that used an AUM model (Assets Under Management). I've now moved to a fee based arrangement. They got me access to a tool called Right Capital which does many of the things I wanted for visibility. I'd only give the tool a "C" grade, and my planner is young, but knowledgeable. I pay less that a 25% of the AUM costs for a portion of my portfolio, and I've rolled everything together in a single view. This is a flat monthly fee regardless of the value of my holdings. I didn't know that fee based was an option until I listened to a podcast on Morningstar. Good luck, and I hope this is just a little bit helpful. Let me know if you have any questions, but I don't spend a ton of time on this forum. John
These terms are relative. In my mind, to be wealthy accounts for your excess of assets over liabilities. I would not consider $1,000,000 net worth to be wealthy, because that is too common, lol! I would also suggest that wealth is a completely monetary/property representation.
Rich on the other hand can be many aspects of life, especially quality of life. This can be work, family, faith, and others. To be rich in these I would call success, regardless of wealth. You can also be rich in possessions which may be the most common connotation. In many cases people rich in possessions are also heavily in debt. IMO that doesn't make them any less rich.
I'd rather be rich. But not in possessions, in faith, respect, and talent. It is a sense of satisfaction and success. Wealth on the other hand is a charge to protect and preserve and grow that wealth. As many might agree, that can be a stressful challenge!
Hi Jonathan,
Thank you for your transparency and your site. You don't know me, and I don't know you, but this is the internet.
Your strength is palpable. I will pray for more pain free time for you. At risk of sharing beliefs not universally popular, I sign off... God bless you,
John Verlautz
Comments
Javier, Great job of stimulating discussion! I'm interested in responding to question 2, but first..
- I'm on my third advisor. The first two we AUM based and CFPs, and I let them go because they didn't quite meet my needs. For less than a year now, I've been with a flat fee advisor and so far so good. I'm not sure my financial position is any better as a result, but I have learned a bunch as I head toward retirement in the next couple of years.
- I think an important answer here revolves around the emotional feelings that people have about their money. This isn't a pretty picture, but I think it's true for many. Often we are our own worst enemy.
a. Men in particular, at times can behave very self-sufficient, unwilling to get help, and unwilling to admit that they made mistakes or bad decisions. Why would I want to present my most intimate financial details to someone who would belittle what I've done? I'm fine, I don't need any help. b. Trust issues. There are countless stories of those (usually famous people like Billy Joel) who have been used and abused financially. If I give you access to my money why should I believe you'll do the best thing for me and not steal from me?Post: The Quiet Failure of Good Advice
Link to comment from June 4, 2026
This is timely for me! We closed on our new house, halfway across the country on 4/18. We finally had our household goods delivered last Friday May 29, after a 10 day delay. That was costly. Right now I'm surfing HD while on the phone with AT&T who has been unable to set up Internet since 4/19. I work from home, so thankfully the hotspot on my phone has been effective. Just a few random drops. Unlike your efficient process, we continue to have partially unpacked boxes strewn across the home, and are dealing with associated stress. Life is good!
Post: Moving is Expensive!
Link to comment from June 4, 2026
Like others here, I have landed with a flat fee advisor. I worked with a couple of AUM advisors, and was uncomfortable with the value proposition. I heard Morningstar's Christine Benz interview a representative from Abundo, and engaged one of their advisors. Not perfect, but good to work with. I have many questions, and they answer them all, and generally find the advice to be sound, often better than my own thoughts. They don't make any trades, I have to execute them myself, so every option has it's limitations. With my kid's help, my wife would be more than capable of managing our finances in my absence, but it is comforting to know there is a trusted advisor who knows us, ready to help through uncertainty. This is not an endorsement or suggestion that my flat fee advisor is better than any other, just a recommendation to consider flat fee as an alternation solution.
Post: Financial Planning
Link to comment from April 24, 2026
I have observed that things that used to be considered luxuries are standard or baseline. My Dad was a music buff, he thought Karen Carpenter was the bomb. He returned from Vietnam and bought a new 1974 Dodge Dart and was just delighted to have an under-dash cassette tape player to listen to his favorite music. It was a luxury to him, one of few he allowed himself. Now people feel that wired connectivity to the music apps on their phones just isn't good enough compared to wireless, but it's so much better than just a few years ago. The proliferation of luxury features in our consumer mindset is a huge contributor to inflation. On many products, you can no longer find a simple manual system, everything is "smart." I don't object to the development of labor saving features, I object to the dependence on it. I'm probably guilty of this like anyone else, but I miss the days where you had to WORK for the fancy stuff. Or just do without.
Post: Enough complaining already. Live your life and stop worrying about “they” “ them” or things
Link to comment from April 24, 2026
Boy you really kicked a hornet's nest here! Debt is a pretty serious subject to many here. And I expect we've all known folks that have been hurt by their debt. I had a HELOC for a long time, it was used to pay for a kitchen remodel. I was in no position to save up for it at the time. I retired the HELOC when I took out a second mortgage. That's a long story... IMHO, debt is a tool. Like any other tool there are right ways and wrong ways to use it. Generally, I'm opposed to debt, but I've used many 90-365 days same as cash loans, car loans, as well as the home loans. What I'm really opposed to are subscriptions. I despise paying a monthly or annual fee without any clear value being delivered (exception is a magazine or newpaper, those are great if you read them, and cancel them if you stop). In terms of the $50-75 annual fee to maintain it, that's pretty cheap. If you are conservative and only spend $4000/mo, $75 is 15 basis points. No way if that were a monthly fee. If you lose your job and think you need a loan to support your family, you should be darned sure that you are still employable. Bottom line for me is; If you don't know how or when you'll be paying back a loan, you shouldn't get one.
Post: Advice I give to anyone who’ll listen!
Link to comment from January 31, 2026
Hi Rob, I'm hearing that you have too much income and pay too much taxes. Not really a problem in my view. At 35% I wouldn't do a conversion either. I would want to find a way to reduce RMDs. It may be too late for you, but my best suggestion is to ramp up your gifting. In addition to charity, you can give a certain amount to others, for me it is my children. I think the max is around $30,000 each for you and your spouse per year. A small amount like that probably won't impact your tax bracket. I look at it that my residual funds will go to them anyway, and this reduces the potential tax bomb. Of course, make sure to keep enough to cover your needs, especially long term care. Sorry, no criticism from me. Best wishes to you and your family. John
Post: Tell me my error in thinking
Link to comment from January 16, 2026
HI Rachna, My two cents. I worked with a CFP who set up my accounts with Schwab. I was disappointed with the service, especially when it came time to leave. I have moved almost all my accounts (six of them) to Vanguard. I like using the website, I like the reporting, and I especially like the low management fees. Haven't really found I need the customer service because the web-portal is above average. I have moved to all ETFs after having a bent toward mutual funds for the last 20 years. I'm not yet retired, but months away, so I'm not exactly in your position. Due to planning complexities, I've wanted to have a planner looking at my portfolio. I've worked with two different planners that used an AUM model (Assets Under Management). I've now moved to a fee based arrangement. They got me access to a tool called Right Capital which does many of the things I wanted for visibility. I'd only give the tool a "C" grade, and my planner is young, but knowledgeable. I pay less that a 25% of the AUM costs for a portion of my portfolio, and I've rolled everything together in a single view. This is a flat monthly fee regardless of the value of my holdings. I didn't know that fee based was an option until I listened to a podcast on Morningstar. Good luck, and I hope this is just a little bit helpful. Let me know if you have any questions, but I don't spend a ton of time on this forum. John
Post: Schwab or Vanguard?
Link to comment from January 16, 2026
I think "wifey" is a term of endearment. It sounds like Langston both likes his spouse and appreciates her. Delightful!
Post: Social Security – Why I Chose FRA
Link to comment from December 21, 2025
These terms are relative. In my mind, to be wealthy accounts for your excess of assets over liabilities. I would not consider $1,000,000 net worth to be wealthy, because that is too common, lol! I would also suggest that wealth is a completely monetary/property representation. Rich on the other hand can be many aspects of life, especially quality of life. This can be work, family, faith, and others. To be rich in these I would call success, regardless of wealth. You can also be rich in possessions which may be the most common connotation. In many cases people rich in possessions are also heavily in debt. IMO that doesn't make them any less rich. I'd rather be rich. But not in possessions, in faith, respect, and talent. It is a sense of satisfaction and success. Wealth on the other hand is a charge to protect and preserve and grow that wealth. As many might agree, that can be a stressful challenge!
Post: Are you wealthy or just rich?
Link to comment from December 20, 2024
Hi Jonathan, Thank you for your transparency and your site. You don't know me, and I don't know you, but this is the internet. Your strength is palpable. I will pray for more pain free time for you. At risk of sharing beliefs not universally popular, I sign off... God bless you, John Verlautz
Post: Staying Alive
Link to comment from December 20, 2024