Financial/Retirement Planning Help Needed

[GordonG]

Though I'd give this a go, there are a lot of people here of all kinds of different backgrounds.

I'm totally out of my element here and need help.

Is there anyone here who has been down a similar road? What is your experience? What did you learn? Is there anyone here who is a financial planner who could lead me. Or at least could teach me on how to find a decent financial planner?

I'm planning on retiring this year. I have an Edward Jones investment account that has had a rather dismal showing. Nothing like I was promised. Ya I know, promises, promises.

You see I had worked at a job for 16 years and had built up a pension before I was laid off in 2001. About 4 years ago, that company offered to cash me out. I thought that I could do that and invest it and get more retirement that way. It's been a dismal failure. I do have more that I started though, just not much more.

I need to get some advice on what to do with that money. Do I leave it, do I invest in a sure thing like a CD or even an instant annuity?  What other possibilities are there? I'm a complete novice.

[Northern Star Girl]

@GordonG ...
Hmm, yes definitely you should schedule an appointment "one on one" in person with a qualified financial planner of your liking....  there are no guarantees in financial affairs so please don't necessarily blame your present financial advisor.  Doing this online is like getting medical advice without an in-office appointment with your doctor.

These are questions you are asking are like I get all the time from my clients but there is not one answer that fits all situations... usually well before I give any advice on this stuff I need to sit down and look at the entire portfolio, financial goals and personal liabilities, assets and long term goals.... 

I will give your information some thought and if I have anything intelligent to suggest I will probably ask for more information about your unique situation.
Hugs,
Danielle

Though I'd give this a go, there are a lot of people here of all kinds of different backgrounds.

I'm totally out of my element here and need help.

Is there anyone here who has been down a similar road? What is your experience? What did you learn? Is there anyone here who is a financial planner who could lead me. Or at least could teach me on how to find a decent financial planner?

I'm planning on retiring this year. I have an Edward Jones investment account that has had a rather dismal showing. Nothing like I was promised. Ya I know, promises, promises.

You see I had worked at a job for 16 years and had built up a pension before I was laid off in 2001. About 4 years ago, that company offered to cash me out. I thought that I could do that and invest it and get more retirement that way. It's been a dismal failure. I do have more that I started though, just not much more.

I need to get some advice on what to do with that money. Do I leave it, do I invest in a sure thing like a CD or even an instant annuity?  What other possibilities are there? I'm a complete novice.

[JudiBlueEyes]

Not to dis anyone but I've heard from multiple sources that EJ is expensive.  I use Fidelity although Vanguard is a good company too, and low cost. 

Their founder John Bogle recently passed away.  There is a strong following for his financial teachings.  Look at Bogleheads.org

This URL from the forum discusses the Three Fund Portfolio.  Nice and simple.   
https://www.bogleheads.org/forum/viewtopic.php?t=88005

When you cashed out did you reinvest (rollover) in an IRA?  Otherwise you would have paid income taxes on the amount!

[Dena]

I need to get some advice on what to do with that money. Do I leave it, do I invest in a sure thing like a CD or even an instant annuity?  What other possibilities are there? I'm a complete novice.

Stay as far way from annuities as possible unless you totally unable to handle your own money. Insurance company stay in business by making a profit and they do it at your expense.

CDs interest rates are starting to get better but they probably only deserve a small place in your portfolio. The maximum amount you would want there is enough to outlast a down turn in the market.

Mutual funds are where the bulk of your money should be. Heavy in stock if you're young but if your near retirement age, you will want more cash in the portfolio. I have a guy who manages my money and he has it divided among several mutual funds and while the gain isn't huge, the money has been growing at a reasonable rate.

[NatalieRene]

Though I'd give this a go, there are a lot of people here of all kinds of different backgrounds.

I'm totally out of my element here and need help.

Is there anyone here who has been down a similar road? What is your experience? What did you learn? Is there anyone here who is a financial planner who could lead me. Or at least could teach me on how to find a decent financial planner?

I'm planning on retiring this year. I have an Edward Jones investment account that has had a rather dismal showing. Nothing like I was promised. Ya I know, promises, promises.

You see I had worked at a job for 16 years and had built up a pension before I was laid off in 2001. About 4 years ago, that company offered to cash me out. I thought that I could do that and invest it and get more retirement that way. It's been a dismal failure. I do have more that I started though, just not much more.

I need to get some advice on what to do with that money. Do I leave it, do I invest in a sure thing like a CD or even an instant annuity?  What other possibilities are there? I'm a complete novice.

My non professional suggestions are:

Do not take on debt that you do not have to. Understand your house that you live in is a liability not an asset. Keep your monthly expenses down and look for passive income. I like the idea of buying real-estate to flip and/or rent depending on the return on investment. I'm in the process of saving up to get started.

[randim]

Hi Gordon,

A financial planner is probably a good idea.  Make sure you find one that works for a fee and isn't trying to sell you something for a commission.  There is some standard financial advise that's useful.Figure on withdrawing 4 percent a year from savings.  Adjusting for inflation, your money should last 30 to 40 years. I am personally an advocate of deferring social security if possible.  In my case filing at 70 instead of 66 boosts my payment by over 30 percent. I am personally willing to eat into my 401K to some extent to get that boost.  But opinions differ wildly on such things.  Longevity expectations and need come into play. Consider whether you want or need to do some part-time work. As others have said, reducing debt is a a great idea. You want your money diversified.  Given the rainbow of mutual funds out there, that shouldn't be too difficult.  Good luck.

[Maid Marion]

The biggest issue is risk tolerance, especially this late in the game.  I've ridden out stock market declines, so I know what  I can take.  Most people can't.

[GordonG]

I thank all of you who responded. I've been very busy the last couple of days, so this is the first I've been able to sit and compose a reply.

I was on my credit unions web site the other day and browsed around and found that they have financial planners there that will meet with members for no cost. They are employees of the credit union, so there will be no arm twisting to buy certain things. I have an appointment for tomorrow afternoon.

And yesterday I was visiting my electrologist and mentioned a few things and she said that she and her husband have a financial adviser that they are very happy with. They got to know him through relatives who also have been happy with him. So I'm going to call him to make an appointment also. I figure you can't talk to too many can you?

[sarahc]

I'm a fee-only financial planner, so hope I can help here...if you want to reach out, you can DM me if you'd like. I think the credit union will likely be fine as a first step, although they probably won't be able to provide comprehensive financial planning advice. If you want any advice or a 2nd opinion, happy to help out. (To be clear, I won't be selling my services to you...just happy to help out.)

[GordonG]

I'm a fee-only financial planner, so hope I can help here...if you want to reach out, you can DM me if you'd like. I think the credit union will likely be fine as a first step, although they probably won't be able to provide comprehensive financial planning advice. If you want any advice or a 2nd opinion, happy to help out. (To be clear, I won't be selling my services to you...just happy to help out.)

Thank you so much Sarah. I'll keep you in mind.

[MistressStevie]

We have taught our kids financial management from very young
ages and it appears to be working.

Simple steps makes it very easy to remember and implement.

1. Keep a budget where you spend less than you make.
2. Invest the excess with some diversification and low costs.
3. Minimize tax obligations. 

Those three steps lead to financial success and steps 2 & 3 are
easy when you follow step one and realize it takes time and
perseverance.  Debt in and of itself is not bad, but debt
being a future you's problem can invite one to spend well past
rational budget goals.   

There are professionals of varying quality and efficacy in the
financial planning industry.   At a minimum, due diligence before
acting on recommendations should include understanding how
the planner gets paid as compensation could introduce bias.

[Northern Star Girl]

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There are professionals of varying quality and efficacy in the
financial planning industry.   At a minimum, due diligence before
acting on recommendations should include understanding how
the planner gets paid as compensation could introduce bias.

Be sure to carefully watch out for the small town Financial Advisors and CPAs in Alaska, they have bills to pay with money that they collect from their clients!!!!

Danielle

[Maid Marion]

My wife was unable to handle her finances so I had her put her pension payout into a fixed annuity with a payout of $400 a month.  After ten years of that I'll be getting $200 a month.  You could do a lot worse than that.

Fixed annuities are likely to be one of the better options for those who haven't learned to invest because you can compare products between companies, unlike variable annuities, which even experts have trouble comparing.