I agree in principle with the comments here: I would run - not walk - from this guy. Several reasons: 1) Can he do better with his (probably high-cost) actively managed portfolio of individual stocks than a decently designed portfolio comprised of Schwab ETFs that, in general, are index-based, well-constructed, and very low-cost? HIGHLY doubtful. 2) Any advisor recommending a variable annuity is not fee-only - he's almost assuredly getting paid to sell you something. 3) It's laughable that he criticises low-cost ETFs based on "expense impact." Talk about expense impact - what about the fees and commissions he is charging you? And "unnecessary layer of expense" - variable annuities are among the worst! 4) Additionally, ETF managers can offload low-basis stocks without tax impact - that's one of the key selling points of the format! Look for a FEE-ONLY advisor like those who belong to NAPFA, not a FEE-BASED advisor. The latter descriptor was developed to confuse the public by advisors who wanted to jump on the fee-only bandwagon without relinquishing their handsome commissions.
Great article, Philip. Particularly relevant for the younger crowd. I tell my younger clients that, while returns matter, starting early and saving as much as you can has way more impact on future wealth. The investment piece is comparatively easy: set it and forget it with a good low-cost target retirement fund or simple indexed portfolio. Forget trying to find the "next big thing" in investing and focus on how to save more!
You can index international developed (no emerging, inc. China) markets exposure inexpensively via Vanguard FTSE Developed Markets ETF (VEA). But you may wish to add a small allocation to emerging markets with Vanguard FTSE Emerging Markets ETF VWO. I split my emerging markets allocation between VWO (w/ China) and EMXC (no China), as I want to limit China exposure but not exclude it entirely.
Great job, Tanvir! A simple, clear lesson on the wealth-building benefits of capitalism. Although often portrayed otherwise, the bar to wealth-building in this country is remarkably low. The DFA video inspired me to write a blog for my clients on the importance of staying invested during the occasional bouts of market turmoil. Thanks!
Another "insurance" option that's often overlooked: A Continuing Care Retirement Community" (CCRC) where you plunk down a lump sum for a guarantee of access to an appropriate level of care for life, even if you run out of money. Not a solution for the less affluent, and it can be a very complex buying decision, but it may be the right one for folks averse to traditional or hybrid insurance.
Excellent article, thanks for sharing! I "retired" to an encore career as a "solopreneur" financial planner/advisor and will selectively share this with "retirement red zone" clients without a plan for the non-financial aspects of retirement (the vast majority in my experience). Building a new career from scratch has been a roller coaster ride, very challenging initially, but it was the right move for me. I tell my clients that it has taken them decades to build their current life, so don't expect to serendipitously land in a perfect, care-free retirement life right out of the gate. Be intentional - the sooner you begin to plan, the sooner you'll discover what works for you.
Comments
I agree in principle with the comments here: I would run - not walk - from this guy. Several reasons: 1) Can he do better with his (probably high-cost) actively managed portfolio of individual stocks than a decently designed portfolio comprised of Schwab ETFs that, in general, are index-based, well-constructed, and very low-cost? HIGHLY doubtful. 2) Any advisor recommending a variable annuity is not fee-only - he's almost assuredly getting paid to sell you something. 3) It's laughable that he criticises low-cost ETFs based on "expense impact." Talk about expense impact - what about the fees and commissions he is charging you? And "unnecessary layer of expense" - variable annuities are among the worst! 4) Additionally, ETF managers can offload low-basis stocks without tax impact - that's one of the key selling points of the format! Look for a FEE-ONLY advisor like those who belong to NAPFA, not a FEE-BASED advisor. The latter descriptor was developed to confuse the public by advisors who wanted to jump on the fee-only bandwagon without relinquishing their handsome commissions.
Post: ETFs versus Assets Under Management
Link to comment from July 12, 2025
Great article, Philip. Particularly relevant for the younger crowd. I tell my younger clients that, while returns matter, starting early and saving as much as you can has way more impact on future wealth. The investment piece is comparatively easy: set it and forget it with a good low-cost target retirement fund or simple indexed portfolio. Forget trying to find the "next big thing" in investing and focus on how to save more!
Post: Saved by Compounding
Link to comment from April 15, 2023
You can index international developed (no emerging, inc. China) markets exposure inexpensively via Vanguard FTSE Developed Markets ETF (VEA). But you may wish to add a small allocation to emerging markets with Vanguard FTSE Emerging Markets ETF VWO. I split my emerging markets allocation between VWO (w/ China) and EMXC (no China), as I want to limit China exposure but not exclude it entirely.
Post: Happy Talk
Link to comment from November 19, 2022
Love this Buffett quote: "The world does not belong to the pessimist, believe me." Re: emerging markets ex-China, check out EMXC.
Post: Happy Talk
Link to comment from November 19, 2022
Congrats, well done! Question: Did you stay with the 100% stock allocation in retirement? Any plans to change as you move forward?
Post: Early Start Early End
Link to comment from September 3, 2022
Great job, Tanvir! A simple, clear lesson on the wealth-building benefits of capitalism. Although often portrayed otherwise, the bar to wealth-building in this country is remarkably low. The DFA video inspired me to write a blog for my clients on the importance of staying invested during the occasional bouts of market turmoil. Thanks!
Post: Off the Treadmill
Link to comment from June 27, 2022
Another "insurance" option that's often overlooked: A Continuing Care Retirement Community" (CCRC) where you plunk down a lump sum for a guarantee of access to an appropriate level of care for life, even if you run out of money. Not a solution for the less affluent, and it can be a very complex buying decision, but it may be the right one for folks averse to traditional or hybrid insurance.
Post: Is buying long-term-care insurance a good idea?
Link to comment from November 21, 2021
Excellent article, thanks for sharing! I "retired" to an encore career as a "solopreneur" financial planner/advisor and will selectively share this with "retirement red zone" clients without a plan for the non-financial aspects of retirement (the vast majority in my experience). Building a new career from scratch has been a roller coaster ride, very challenging initially, but it was the right move for me. I tell my clients that it has taken them decades to build their current life, so don't expect to serendipitously land in a perfect, care-free retirement life right out of the gate. Be intentional - the sooner you begin to plan, the sooner you'll discover what works for you.
Post: An F in Retirement
Link to comment from October 16, 2021