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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.
Re # 81, make sure you understand how secondary (not contingent) beneficiaries are treated by your employer plan. Case in point. With the Federal Government TSP, once the original account holder dies, it becomes a beneficiary account. No problem yet. Once the original beneficiary dies, the account is distributed in full to his/her beneficiaries in full w taxes withheld and a big fat 1099! There is no rollover or transfer option to another trustee! A potentially huge tax problem. If, however, you had previously rolled those $$$ to an IRA, downstream beneficiaries would have the better 10 year payout option afforded by Secure Act 2.0.
Mark Ukleja, I stand corrected, as it appears there may be a fourth reason for rolling it. After review of my plan, it appears to be similar to yours.
#81. “Roll over your 401(k).” I am in your camp, not rolled over yet. 401(K) offers security from lawsuits. IRA’s won’t. Fund options and fee structure are very competitive too. I don’t see a good reason to roll over. Michael, you also mention it in one of your replies.
I like #88 “Know your net worth, but don’t obsess over it.” Let’s bring that up the next time it comes up in the forum.
Regarding #81, one of my first tasks next week after my July 1 retirement is to roll over my workplace accounts at Fidelity (403B/457) to my Schwab Rollover IRA (from my previous job). I’ve already spoken on the phone to a rollover consultant at Schwab, who followed up with an email with detailed instructions about how to do this.
I didn’t necessarily want to go with the Schwab rollover at this point, but my husband works for a Big Four accounting firm and has regular independence audits, and he told me that my Schwab IRA is already on the approved list, so it would be better for him if all my retirement funds were there. We can revisit it once he also retires.
As for #83, I use Tide Pods. Were we supposed to cut them in half or something? And my husband does his own laundry, having learned early on that as a stereotypical absent-minded professor, I’ll start multitasking and not take stuff out of the dryer as quickly as he wants it out. I’m not allowed to load the dishwasher, either.
Another consideration when deciding to rollover or not rollover is ERISA protection.
Employer sponsored plans are typically protected from creditors, bankruptcy and other legal actions. In many states IRAs do not enjoy these same safeguards.
r r, According to my current “trusted financial coach” who’s name is not Richard Quinn, but ChatGPT: “Most 401(k) plans are protected under the Employee Retirement Income Security Act of 1974 (ERISA), which provides strong protection from creditors. Under ERISA: Creditors cannot seize your 401(k) to satisfy most types of debt, even if you declare bankruptcy.”
A sufficient umbrella policy would protect your assets however at minimal cost.
We buy detergent sheets that you divide in half for smaller loads, which we mostly do. We switched to reduce our plastics profiles. We also learned that the black discoloration on the rubber seal is not mold, but from excessive use of detergent in newer low sudsing washing machines.
ask your plumber about tide pods, or any pods….just fyi
Lester Nail, I just looked, and of course I don’t use tide pods! Though what do you know about the Finish Powerballs I put in my dishwasher?
My husband was pretty frugal in general from the earliest days of our marriage, setting the stage for long term financial returns. He was also particular about laundry, telling me once that I would be getting a ‘D’ after not taking the care of shirts to his standard. I asked, how to I get an F? He took care of his own laundry after that, economizing perhaps not in laundry detergent but gaining bountiful returns in marital peace.
That’s hilarious.
DrLefty, I stand corrected, as it appears there may be a third reason for for rolling it.
Maybe a fourth reason. I wrote previously about pros and cons of my 401k (link below). In addition to those, we’ve learned recently that inheriting it is a major pain. I think that’s more specific to the custodian and plan rules than to a 401k in general. In any case, it’s pushing me closer to the edge.
I’m waiting to see what happens to tax rules this year before acting. I expect there to be no impact on the decision, but no harm in waiting a few months.
Here’s the earlier post:
https://humbledollar.com/forum/love-hate-and-my-401k/
LOL.
If there was ever a good time for me to keep my mouth shut…. #83, laundry soap.
Well when working over the years I told several thousand people what they may not have wanted hear and many were surprised what they learned.
regarding #81 it took me ten years to rollover my 401k, not sure why except some weird allegiance to the plan I designed and implemented when working. I wish I had done it sooner. It has worked out very well.
Dick,
You didn’t address Mike’s request for you to become his “trusted financial coach”.
Yeah, I’m pretty sure there was a touch of sarcasm there. I’d just like to learn more about those red arrows. Being different with opinions doesn’t seem popular, but that’s the story of my life.
My first day on the job at 18 I got in trouble with the union because I couldn’t understand why we stopped work ten minutes early for”wash up time” when nobody washed up but just stood around waiting for the time clock to reach quitting time so we could punch out.
R Quinn, I just gave you a green up arrow, as my official unofficial trusted financial coach, I’m counting on you “Being different.”
No problem in that regard. I have had years of practice.
Dick, what I have learned over the years is people don’t like it when you call their baby ugly, even if it is true. My CEO told me I couldn’t be promoted because I had “rough edges”. What he really meant is I told people the truth, without sugar coating it. But as the company lawyer, my job was not to make folks feel good about their stupid decisions that got us into lawsuits. I’ll stop there. thanks!
I can relate to that. That gives me an idea for a new post.
I was being a wise guy.
This is kinda-sorta like an article AARP publishes each year – 99 ways to save money. I find that we’re already practicing all the applicable ones.
99 problems but the pitch ain’t one.
I’ve never looked into Fisher but from their incessant advertising I automatically assumed the worst. Thanks for largely confirming my prejudices.
Fishers fees, according to AI:
No wonder they can afford to send me those 11×14 inch mailers.
I’ve always figured that anybody who needed THAT much direct mail to build a client base — and could afford it — was worth zero consideration as an advisor.