Ninety Nine, I mean Eight Retirement Tips

I met a few months back with the vice-president  of Fisher Investments. One of the benefits of our meeting was a hardcopy brochure titled “99 Retirement Tips.” You can get an electronic version via this link, without having to attend an actual meeting, though it may still come with some very persistent phone calls from Ken and Company.

It makes for a brisk though useful read as every retiree could benefit from going over the basics every now and then. Though if you find that you’re too busy for 99 tips, I’ll review the more interesting ones.

#3. “Establish a ‘trusted financial coach’ relationship.” The idea that “it’s helpful to have someone you can trust help you evaluate financial decisions,” and maybe Fisher Investments can be that someone. I don’t have anyone that fits this bill and am thinking I’d ask Richard Quinn. As we’ve never met he may not be interested, but I have a feeling he’d be more than willing to “tell [me] what [I] need to hear and not just what [I] want to hear.” Also, he seems rather trustworthy.

#16. “Choose a long-term financial goal.” The option of “spend it down and end with nothing,” is specifically mentioned and is specifically appealing. Though what isn’t mentioned is the how. I really like the idea of instituting an investment plan that upon death has me owing the government a considerable amount of money. Unfortunately, my enjoyment would be greatly limited as I’d be constantly worrying, “What if I live another 10 years?”

#18. “Beware of Annuities.” I just finishing eating my leftover steak from a recent “Complimentary Dinner Event,” where I was also warned about “complicated, difficult to understand contracts” written by commissioned salesman. If seems that the wealth advisor playbook now includes a play called “Crap on the annuity.”

Since my wife and I both will have social security and pensions, we are well annuitized, though for others a single-life annuity may make some sense. So much so that Fisher actually recommends them on their website.

#19. “Consider passive management carefully.” It then goes on that “you (or any money manager) can’t consistently beat the market” is a fair assumption, but that a money manager can prevent a panicky client from selling “after the market falls.” While there is some logic to this, it makes it seem that I’m paying someone 1% of my assets to be a psychoanalyst and not a financial analyst. It is rather resignedly mentioned (much) later in tip #92  that “If you’re going to buy funds, buy low-cost index funds.”

#52. “Travel early in your retirement.” The wisest analysis ever to come out of Fisher Investments. I retired early, forgoing company sponsored health insurance to make a Grand Tour of Europe followed by circumnavigation of the globe. I have no regrets as if I waited I’m not sure it would have been as fun or if I would have done it at all.

#81. “Roll over your 401(k).” It then goes on to explain how to roll it over to the oddly described “new retirement account,” assuming it as a given. Well, I’ve been retired for a number of years and have not rolled mine over yet.

Now it seems to me that the only reason to roll it would be due to cost (too much) or investment options (too little). I have my ExxonMobil 401(k) with Voya, which limits my options to the rather blandly named “Equity Units, ”Extended Market Units,” and “International Equity Units.” I personally don’t mind these few options, mostly due to the expenses on my Equity Units running around 0.0025%.

I’m going to stick with my 401(k) for now, even though it limit’s my ability to invest in the Invesco HSBC GIF Singapore Dollar Income Bond (HSSDAM2 LX), Impax Ellevate Global Women’s Index Fund (PXWEX), or the Mills Music Trust (MMTRS).

#83. “Look for ways to economize without changing your lifestyle.” This makes a lot of sense, not only for retirees but those currently employed. The tip though focused solely on “Measure laundry detergent. You’re probably using a third more than you need. That’s about $20 per year going down the drain.”[1]  While they might really be on to something, I decided it would be wise not to share it with my wife. If your spouse does all the laundry without complaint I recommend you do the same (I’m thinking of sharing this idea in my brochure “99 Marriage Tips”).

#88. “Know your net worth, but don’t obsess over it.” Finally, something besides travel I can whole heartedly agree with. The balance of the tip focuses on how calculate it (Assets – Labilities) and not how to avoid obsessing about it. It could have used a little more input from the psychoanalyst in tip 19.

When I was working I used to calculate it every month (except during the Great Recession), but since I retired and have all the time in the world, I can’t be bothered. I wish I could let you in on my epiphany, but I really have no idea why.

That’s it for now though, #53. “Try a cruise,” #17. “Establish an investment benchmark,” and #72. “List your accomplishments,” could be grist for a future article.

And Richard, let me know either way.

[1] If you ever read anything written by Ken Fisher, you’ll quickly realize that as much as he likes making money, he likes making puns even more.