[USER]

Married 50 year old. Wife is 44 and we have an 8 year old child. We’d like to retire in 10-12 years.

We’ve had our Rollover IRAs ($500k) with Empower for about a year.

Fidelity prior to Empower.

They’re also managing our 401k’s($700k). Performance has been mediocre, about 8% YTD.

Their fees are pretty high so we’ve been paying them about $650/month.

I read The Simple Path to Wealth and we decided to move our RO IRAs to Vanguard and would invest in VTSAX.

When I told our advisor at Empower that we would invest it all in VTSAX, she reacted like I may be the dumbest person she ever talked to.

I think I know the answer, but this is serious stuff.

I’m making the right move, correct?

[Daniel]

Gaslighting behavior from your advisor? Yes, you’re making the right move.

[Scott]

Yes, ditch the fees! And at 48 I am 100% stock index funds and real estate.

You are thinking correct

[Jule]

Trust your gut. You are doing the right thing.
Empower gave me the hardest time when I wanted to move out over $1M.

Eventually I got it done and I am so much better off.

[Marc]

You’re doing the right thing. I agree with Paige Hahnenkamp though. You might want to take a look at what your risk profile should be as you get closer to retirement.

[Paige]

Since you’re getting closer to retirement it would be wise to have some safer investments too.

Also, why all one fund?

[Christine]

Yes you are making the right move!
She is taking that way because she wants her commission money

I’ve had steady increases for the last decade at Vanguard

Definitely look at your target date and make sure you got it split

between VTSAX and bonds

[Sha]

I want to get rid of all of the fees we are being charged with Fisher Investments.

Is there a way for me to just leave my investments where they are and not have all of their fees?

This is all very new to me.

Thanks.

[Winnie]

Just to mind you that in 10-12 years, your kid is entering college. There’s a four years of money needed to think about, too

[Tom]

We had an advisor that had turned our portfolio into a bowl of alphabet soup with no less than 56 funds and bonds with a very poor yield.

We fired him once I put a pencil to things.

We sold everything and bought a Total Market Index Fund (FSKAX).

YTD up 20%.

[Gary]

Do it you will do much better. That’s been my experience.

[Noemí]

For a $1.3M investment with an 8% gross return and $7,800 in annual advisor fees, your net return is approximately 7.4%, if I’m not mistaken.

VTSAX has historically provided around 10%.

[Howie]

No one knows what happens in the short term.
If there is a recession or some political issues, the markets can goes down.

But if there is a soft-landing and we are entering the next growth cycle, then the market will go back up.

The issue is with a 10-12 year timeframe, you need to hope that the markets are in a uptrend if you are fully vested.

Otherwise, you have to remove some risk as you get closer to retirement.

I will recommend getting a coach or a fee-only CFP to help you with at.

[Tristan]

There is nothing wrong with it per se. You just have to be willing to stomach the ups and downs.

Some people are able to handle the risk even in to retirement, but I would say most aren’t.

You still have a long horizon, so if you don’t mind that there could be years where it is down 20% and historically averages about 2% more (maybe less is your 8% is net) than your return for this year then go for it.

That fee does sound like it’s a little above average, so if you don’t feel you are getting value in more than just a return, go for it

[Mandy]

Yes! It feels scary initially but will be nice to see your growth percentage increase.

Compare VTSAX with VFIAX or VOO on the Morningstar site.

[Bonnie]

To help plan your last few years before retirement, get the book Diary of an Early Retiree: How You Can Do It Step by Step.

If you subscribe to Kindle or Audible you can get it for free.

[Steve]

I talked to an empower sales person. He was an arrogant ass. Thinking he knew better.

They out everyone in the same pot of stock eventually

[Author]

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