FIRE.064 “Financial Planning” Education

{These are my personal observations and opinions of the events that took place.  I may be wrong}

I attended a meeting for a family financial planning education group.  I could tell from the pictures this would be some kind of recruitment or sales-y meeting.  I had no idea it would make me physically sick to my stomach!

I love learning more and more about financial planning.  I love the feeling of gaining new skills that are applicable to my life.

I’ve been to some great financial meetings (ChooseFI locals & Bogleheads) over time and find them amazingly rewarding.  I decided to try and find more meetings to gain knowledge so of course, I looked for some meeting opportunities.

There have been many financial meet groups that were available over the years, but one popped up last week that was located less than one mile from where I was staying.  PERFECT.

The meeting was titled “Financial Education.” The details: “Too many families are being overlooked because most financial service firms focus primarily on the wealhty.
Our focus is to provide households with information, tools, and strategies to help them make good and informed financial decisions.”  (the typo is not me, it’s in the description—maybe to not be liable, but isn’t that the most important word in the description?)

I hoped the meeting was going to explain household finances 101.  In actuality, it did explain IRAs/Roths, stocks, taxes, etc…insurances…but with a slight slant.

EEERRRK, then things changed to the attendees going from learning about financial planning, to becoming “financial planners” just as the presenter (“co-owner of the presenting business”) is now, just 5 months after quitting her waitressing career.  WTF?!

I could tell from the meeting photos that this could be a recruiting meeting instead of a learning environment (“learning to sell financial products…”) but I hoped for the best.

As I said, the first half of the beginner meeting was explaining finances with a slant.  The second half of the meeting was how much money you could make IC’ing for this company.  How much money was out there in baby boomer qualified accounts “that had to be withdrawn at 70 ½.”  Not “minimum” required distributions, but “withdrawn,” implying ALL.  With a 3-7% commission for the financial company…all while protecting the family from high 1.5% YEARLY fees from other companies.  Slanted facts in many cases.

At this point, my skin is crawling slightly because I can feel their sights on 10,000 baby boomers turning 65 and then 70 each and every day.  Those lovely seniors with a large percentage of the “25 trillion dollars” in retirement accounts.

As this explanation of “protecting families” money from the stock market waves (ups/downs) is going on, I’m thinking how the almost-to-take-effect fiduciary law for retirement accounts would most likely have stopped this business from selling 70-year-old people products that lock up their money for five to ten years.  The sale of those products may be “suitable” but I can’t imagine the lock-up is in their best interest.

 

The beginner meeting ends and we’re told if we’re interested we can go sit in on the end of the “intermediate or advanced” meetings.  I jumped to the intermediate meeting.  Everyone was dressed in their suits and dresses and fancy shoes (at 9pm on a Tuesday).

I catch the earning power potential section.  …If someone saves $300/mo into the insurance product, that is 300*12mos=3600 points.  From what I recall, a handful of these sales each month equal $3999/mo in income.

Continuing up the levels of the ladder…the top “financial planner” who has 20 people selling 20,000 points per month would make 1,020,000/yr if I recall correctly.  One million per year doing NOTHING because their “team” is selling.  I’ve never been to any multi-level anythings, but this sure looks like each level above makes money from the lower levels selling the products, AND bringing in more team members below.

Here’s the horrible part.  This could simply be my personality and not any fault of the business.  The end of the intermediate meeting had a leaderboard update.  Who met with the most clients, who brought in the most prospects (meeting attendees/sales), who signed up the most new team members, who earned the most sales points…Each “winner” being cheered louder and louder by the dozens assembled.

I swear this to be 100% truth.  During this competition update, my stomach started flipping out.  I felt queasy and then worse, I had to smoothly exit the room (during one of the standing/clapping celebrations) because I thought I would going to lose it and vomit immediately.  This is NOT a metaphor. I was becoming physically sick at that moment.

I went into the hallway, leaned against the 2nd-floor railing and breathed deeply for a few moments until everything settled down.  Nothing like this had ever happened to me before unless I was on a roller coaster, super windy road or bumpy airplane…all of which evoke some fear of danger or death.

I hate to say this, but it turns out the government may have had a good idea to get even bigger in order to help people protect their money.  Of course, I’m assuming my feelings are correct, that this is not the best thing for most people.  Remember, I’m not a professional.  However, I have completed have my 10,000 hours of working with my family’s finances.

 

Another thought I had along the way.  There were multiple business names used throughout the evening.  I’m not sure what this company was actually called.  I did see the Avery label stuck on the suite’s nameplate—which was using a different name than the powerpoint slides, the posters on the walls and the trophy’s for top salesman going back at least five years…  Warning: Danger Will Robinson.

 

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

FIRE.065 What if the FIRE goes out?

I was wondering, at what point of an “oh-shit” disaster could/would cause me to go back to full-time work?  Is there a part-time-work crisis level?  What about the “I found some cool working opportunity that I like” to do instead of owning ALL of my time?

Let’s back up before this moment of FIRE extinguishing.  Those of us consuming FI content are acutely aware of Financial Independence.  We are also very involved in the overall life Independence concept. The majority of us probably believe in being self-sufficient.  We are the kind of people that look at issues/problems/goals and formulate plans—with contingency plans—to move along our amazing path.

It’s these planning abilities we have, which should warn us LONG before the FIRE goes out.  We will see the FIRE dimming in relation to our planned spend.  We will see the FI number shrinking, we may even see the RE excitement and its valuation lessening.  Our driven energy may start to propel us towards new and exciting work-ish related challenges.  That may just be inherent in our nature.

However, some of us may fall into an autopilot mode.  I mean, why not?  We’re able to live a life that day after day we can lounge on a beach somewhere just reading books and playing in the sand/surf or hiking/camping in the mountains week after week just oblivious to what’s happening in the common-folk world.  We can lose touch with the normalness of most people’s daily reality.  Note: planning zebras don’t change their stripes; they just run a lot less with the pack.

What would I do if the FIRE went out without me watching it and I had to panic to implement a survival plan?  Whew, I don’t know.

  1. I have to believe I have skills that would adapt to many working situations at a good/professional salary range if necessary.
  2. I keep developing my people skills. I now have a much more positive attitude towards the day, and combined with my ability to set and meet goals, there is no doubt that I could sell those skills to an employer.  Believe me, working is “selling” your skills to an employer.
  3. I think it would be smart to have work-related activities underway while living in FIRE. We are all driven and passionate about things, think about the income those things may generate.  While working, these activities were called “side hustles.”  Maybe in FIRE they are called “passive income streams.”
  4. It may be possible to keep active and earn money while in FIRE with your career skills, especially at the beginning of FIRE when you are still somewhat fresh from work and may not be totally used to your 100% free lifestyle. Waiting until after your FIRE honeymoon is also a great idea.  There are plenty of studies that show the first five years after retirement are the biggest risk for your long-term financial success.  My wife and I have done small-scale work/consulting activities just to allow for playchecks.

Thinking through this post, and spending 4+ years monitoring our FIRE, and continually learning—I don’t think we could be taken by surprise with the FIRE going out.

Who knows what can/will happen over the next 40-50+ years.  I just have to believe we will continue to monitor, plan, learn and adjust through the waves of life.  Just as we have done for the past 25+ years.

 

I was finishing up my thoughts on this post and then in comes this great post from Jeremy (I say Jeremy like he’s my bud.  He’s not my bud, he’s just cool)    Read:  GoCurryCracker being ruinedAfter reading his post, he’s right.  When you’re a strong and powerful person and have taken full control of your destiny, you probably can’t become a wage slave again.  Thanks for slamming the door on my post.

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

FIRE.063 80% and NOW!

Life Is So Great.  As I was sitting in the spa (‘Jacuzzi’) at the gym after my lap swim the other day, I did my 10-minute meditation/mindfulness/gratitude session.  Somewhere during the swim/meditation, I started thinking about the luxury of being engaged in activities that are of my choosing—for my betterment— at a time that I chose…right in the middle of the day.

To put these thoughts in perspective, daily life can be somewhere between an amazing Saturday and Christmas.  It’s somewhere between a great day and a gift day.  Or more specifically, an absolutely amazing gift, maybe one of the best gifts you can have.

  • How can someone get this gift for themselves and family? What would this gift mean to you and your family?
  • What does it take to leave the formalized workforce?
  • Do you have to have a “magic number” to allow “retirement?”
  • Do you have reasons you’d want to be a non-working, full-time life-living person?

WOW, that’s so many questions, with so many possible answers.

If you had a magic number for retirement, and a whole list of activities you’d like to do, then it seems like you just need a date to start that new lifestyle.

I’m assuming the magic number you’ve created—possibly based on the 4% rule of thumb—is the main consideration because, after all, without money, you’d just be a bum instead of FI.  Or, are those different at all?

My question is, would you live a little lower level of lifestyle to not have to work again?  Could you live on say, 80% of your current spending in order not to go to work each morning/each day?  Could you be happy with a little lower (or significantly lower) level of lifestyle?

There are so many articles that base your retirement expenses at 80% of your salary.  To me, it’s quite scary to think that most people spend ALL of their money, or most of it.

    I guess the 80% is based on:

  • 65% going to SS,
  • 5% to work expenses and
  • 10% to savings…everyone’s saving at least 10% right?
  • (Quick calc: saving 10% means after 8 yrs of saving you’ve earned 1 yr of retirement?)
  • (Quick calc #2: after 40 yrs of saving, you’ve earned 5 yrs of retirement.)
  • (Quick calc #3: saving 50% of income for1 yr, you’ve earned 1 yr of retirement.)
    • [Ignoring growth/inflation]

So it’s easy to see there are opportunities to live a lifestyle now that will set up an amazing lifestyle in the futureBut, don’t forget to enjoy each day now.  Over-sacrificing now may seem like punishment, making the FIRE goal less valuable overall.

The new quote I love:  “What a wonderful life I’ve had!   I only wish I’d realized it sooner.” – Colette.

So, could the Pareto 80/20 principle work for you?  Could you hit 80% of your “magic number” and forgo 20% of your lifestyle in order to FIRE sooner?

I definitely believe the best things in life are not money driven.  However, it’s really great to have some money around…

 

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

FIRE.062 CampFI…Mind Blown

72 hours of amazing!

Last weekend I joined 60+ AMAZING people for a weekend of…well, when I really think about it, was a weekend that’s almost indescribable.

  • It was a group of people “taking control of their financial lives in order to build an amazing future.”
  • It was a group of people who have vastly different lives and experiences, all of whom are locked into a better future and
  • It was a group of people who probably ranged in age from 20’s to 60’s. A group of ages where anyone of any age could talk to another person of any age, and it was extremely easy and valuable for both.

Before I go any further, I want to say that I wasn’t able to talk to everyone.  Here’s the kicker, this strikes me as surprising that I noticed my disappointment of not being able to engage with 100% of everyone.

I normally don’t talk to many people.  I usually choose to listen to conversations and try to be a participating-observationalist.  I’m quite introverted in real-life.  Yet it was easy and actually energizing to converse with probably 65% of the group over the weekend.

At CampFI, with ALL the freaking amazing people I wanted more.  I asked questions, probed into people’s lives, asked for stories, and it seemed we all opened up, I’d bet more than—or much more—than we normally would to other people we’d meet.  I felt truly connected to this group as a whole and individually.  Many people attending now know more about my life and thoughts than anyone outside of the Camp.

Everyone I spoke with was very smart, sharp, well spoken, logical, thoughtful and probably the best part, super funny, snide, witty and spot on with their jokes/comments.  I laughed so much, even with people I’d just met minutes before.

Here’ the deal: presentations, pop up breakout sessions, small group gatherings, board game groups, hiking/running/biking/meditation/yoga/drinking groups, LONG meal discussions in the cafeteria which could last until the NEXT meal, group discussion standing outside at 1am because people can’t make it back to their room, and my fave (the worst part?) was the “goodbye” announcement that took 45 minutes or so.  It’s the people you meet.

Over the weekend I noticed EVERYONE that I spoke with I made a connection.  Actually, I felt a core connection with each amazing person speaking with me.  This connection and interest seemed to happen nearly immediately.  There was a genuine interest in that person’s life and path.  The connections came in many different areas of life, but I believe all were forged due to a common core value we all hold.

This internal power, being in control, being better, working to be even better, being different than so many others just turned out to be the deep value we all possess and could feel from each other.

There were also some connections that went truly deep.  Someone who just seemed to have a similar situation with me.  A conversation that could have gone on for hours, or possibly did.  A connection that will continue in the future, and most probably in person again—not just online.  I just think how special that may become.

I feel the bottom line is, not very many people think about FI and the power it entails (yet?).  This large group understands, and there is a bond between us.  I’m going to find those connections at future CampFI’s because I want (need?) this “tribe.”

To the extra special few:

Quick thanks to Stephen for the bias for action to set up these camps (side hustler, but for our benefit).  The connections we all made, make a difference.

To Brad and Jonathan for thinking up a great ‘generic-ish/inclusive’ podcast that is engaging for such a wide breadth of interest…you have solidified ideas and sparked change, and linked together so many thousands (and possibly hundreds of thousands) of lives.  My hat’s off to you both.  Truly world-changing—for decades in the future.

The takeaway:  Find others like you.  Go to the meetings if you have a group nearby.  Go to CampFI or a similar even if you can.  Even if you’re not a social person, continue to surround yourself with people like you, or people you’d like to become, and expand your group of those who have the same core values.

“CampFI…You’ll sleep when you get home”

 

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

FIRE.061 Super Frugal – Upper Frugal

After my one-step below cool post I realized my wife and I have a lot of stuff.  Even though we live in a really small house(s), we still have so much stuff.  Things accumulate over decades with two people who don’t like to get rid of useful—or historical—stuff.

I know in so many ways I am frugal, but reading about vacation homes and muscle cars seems to distort the frugal picture.  I then started thinking about people who are super frugal and live a VERY low cost of living.  People who spend—or plan to spend—in the teens of thousands per year.  People who ride bikes instead of driving in order to spend less.  Don’t get me wrong, I do agree that there is so much to love about cycling for transportation and/or exercise.  I even heard on a podcast with an endurance runner who doesn’t own a car, that he runs to appointments and to/from dinner with friends, even if it’s 7 miles away.  It’s just his lifestyle.

This all made me think, is the American way of frugality scalable?  Can there be different levels of frugal?  I believe the answer is yes.

If the definition of Frugal includes “economical and prudent in spending,” CHECK.  If you add” not wasteful.”  CHECK.  If you add “entailing little expense and requiring few resources, meager.”  Hmmm?

It seems there really can be different levels of Frugal.  There may even be a ratio to “middle-class.”

  • Think about Frugal people.  Maybe Millionaire Next Door types.  People who buy what they need, do not require fancy items and keep the items for long periods of time.
  • Think about the lives of the Super Frugal.  Maybe the Early Retirement Extreme lifestyle where people are skilled enough to do most tasks themselves so they save money.  These are people who require very little spending money to have an acceptable lifestyle.  Just a different take on spending wisely.
  • Now for my current category, Upper Frugal.  People who spend wisely on the things they need, as well spending wisely on the extra wants in their life.  It’s not “few resources” level of frugal, but is definitely “economical” and “not wasteful.” This may be the one-step below cool.  (Question: is this one-step below Frugal; cool, or one-step below “I spend like crazy and show off; ‘cool.’”)  In my thoughts, Upper Frugal may be a smart spender from the Upper Middle-Class range.

Hmmm…Does income or net worth, or rather spending/stuff determine someone’s class level?  Which one?

Often people seem to judge—or get it into their head’s, some opinion—of others and their actions.  That may not be the greatest activity.  I feel it’s fine to review situations and get a feel for them, but judgment is not the best quality.  Understanding and especially learning from situations is critical to improvement.  Experiences let you prepare and pre-judge situations to best position yourself for your most favorable outcome, but it may not be the best place for judgment.

My takeaway: Some people spend more than you.  Some people spend less, or FAR less than you.  They may have their reasons and their own path in life.  Watching, understanding and learning from everything could be the best way to move forward and progress.

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

FIRE.060 Sum of the Parts

It’s NEVER just one thing that matters.  It’s how the pieces of everything add/work/multiply together to give a higher—or much higher— output.

I grew up in the 80s.  I was really into hard rock music.  Yeah, I knew some of the bands had a couple cool songs, and of course, I knew some were just boring or totally lame.  But some of the music was amazing.  Some of the music has stayed with me throughout life.  Some of the bands still play shows and some also create new music—some decent, some not so much.  What makes up a band?  Think about the term “band.”

When a member (one piece of the collective group) leaves and starts a new band or solo project, often it never really becomes a long-term successful career.  It doesn’t seem to matter how talented or even how popular that person was, sometimes their past success was due to the combination of efforts.

Some members of broken-up bands fell on hard times, very hard times…I’m thinking how this can relate to “asset classes” or worse, bad asses from the group. (Wasn’t that super-creative wording skipping the ‘t’?)

Your financial situation is a giant collection of individual decisions.  These decisions work together to form a group of decisions and deliver an outcome.  They can add/multiply together to have more drastic outcomes.  Imagine buying a cool old classic car that uses a lot of your money and leaves you little cash for old-car repairs.  That may subtract your money into a bad decision.  Or buying an ETF/mutual fund and re-investing the incoming dividends.  Neither the breakdown of the vehicle, or the distributions of dividends are in your control, but they add/multiply together changing the overall outcome of your initial decision—at least in a financial respect.

The collection of your decisions add together.  Acquiring loans for items over time will add together putting pressure on your financial situation.  Acquiring assets that have a positive return may over time increase your net worth.   Acquiring speculative assets may even add to your life stress, by not knowing the future outcome.

There is a reason many wise people suggest doing things in moderation.  A little of this, and a little of that, could very possibly balance out too many one-sided decisions.  Writing post this made me realize again how risk averse I tend to be in many areas of my personality.  We’re all different.  We make different decisions, but all these decision/parts combine into something, the sum of things.

As in music, it’s very possible that sectors of the market may change over time and those “assets/classes” may fall out of favor.

One crazy example:  there was once a TV channel called Music TV that played music 24 hours a day.  It was a hugely popular TV channel that shaped a generation.  Today that business (channel) still exists but it is NOTHING like it was 30 years ago.  Things change, even if the name remains the same.

Take a moment when you are facing a decision to understand the immediate impact and give some thought to its future impact.  Some decisions may seem less than optimal now, but be excellent you’re your long-term plan…some (many) just the opposite.

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

FIRE.060 Magical Mornings

BEEP BEEP BEEP !!!   Oh, the sounds of mornings throughout the world.

Is it so shocking so many millions of people are angry, grouchy, touchy?  With everyone starting their day in a shocking manner, basically being barked at by an LED @$$hole ordering you to get up and get to work, no wonder there is so much discord.

You may have to live with this morning demand, but by reading this, I know you are on the right track to being your own time-boss, your own responsible party.  You are on your way to INDEPENDENCE from, well, from others.  This cannot be overstated.

Last night I went to bed a little later than normal and just couldn’t fall asleep.  I didn’t worry about it because I knew morning would arrive when I wanted it to.  Stop and think about that.  What would you give to have EVERY morning like a weekend morning?  Even better, it wouldn’t be a two-day-rush-to-complete-everything weekend.  Your life can become more comparable to a LONG weekend, or a week vacation…and even better, no thoughts of the work piling up when you return to the office.

Last week I was thinking about how amazing it is that we lived (spent) wisely in our past to have the independence we have now.  NOTHING is worth as much as having your time to yourself.  Specifically, owning your time and essentially your life.

So this morning when I noticed the sun was up and shining in my windows, I thought, “yeah, last night’s sleep wasn’t great, but I own my time, I own this day, I can just lounge here for a while and relax, read my book, breathe and when I get up, then I can do everything or nothing.  Priceless.  Absolutely priceless.

As I’ve stated before, the tone of your day, etc., may come down to your morning.  I was lucky to work from home for years.  Each morning I was lucky enough to sit in my spa for 15+ minutes.  It was always wonderful to be outside and chillin’ in hot water.  I would become even more relaxed and then start (more likely ‘continue’) my work day.  I’ve always said, “if everyone in the world had a tub of hot water to sit in each morning, the world would be a much calmer place.”  Maybe we need a “national spa program.”

My thoughts for you, for everyone, is not as complicated, or as wise as The Miracle Morning.  My thought is, just find a little bit of calm, or calming in your morning.  Find the gratitude for the great things in your life.  Tackle your day to make the greatness even greater.

 

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

FIRE.058 Life Can Sucker Punch

A longtime family friend just lost their spouse unexpectedly.  Their passing is crushing for all of us, especially the surviving spouse of nearly 30 years.  They were very close to each other, outgoing and fun to be with.  Life can change in an instant.

I love EVERY day.  I’m privileged to be in the situations my wife and I are in, including; financially, relationshipally(?), and healthy.  I write about “thoughts of LifeInFIRE.”  I feel most of my posts are on the positive view that I see, and maybe that’s how I present the views around me to myself.  If you ask me, positive helps healthy.

Our friend is strong and healthy, but is now living in their home by themselves.  I cannot imagine the emptiness around them.  At this point, it is their new-normal, that’s just a fact.  A crappy fact.

I chose to offer my experience with finances/structural stuff having been through similar losses for my mom and mother-in-law.  I just wanted to take some pressure off their plate giving them one less thing to worry about.  My offer was accepted with a “whew, I have someone 100% on my side to help out.”  I first said “there is no need to do anything financial right now, no decisions to make.   Don’t do anything for 6 months.”  That relieved a giant stress off our friend.

I gave some ideas to settle in to the new-normal life.  Review some interests that they previously had.  I said to lean on your kids for companionship.  Always take advantage of your friends who have been there, and others who are extending themselves more now.  (I’m really not a great emotional person, but I’ve seen great people really come to help over time).

Now, much of my strength is financial.  I’m able to look at spending/earning structures and see the path ahead.  Luckily, our friend is comfortable.  They were smart to save and plan for the future and enjoy life together all along the way.  That is so important because when this sucker punch happened, the passing was the main punch.  There was no follow-up second financial-crisis punch.  There should be little stress on the financial side, having to panic over how to pay the bills now and into the long future ahead.

Multiple times I’ve seen the benefits of you planning for your life partner surviving you if you should you pass first.  Your partner will not feel a constant month-after-month or year-after-year attack from bills they cannot handle.

In our friend’s current situation, there are some decisions to be made.  Some account renaming, consolidation, trustee location type decisions, but those can wait.  The bills will be easily paid because of lifestyle planning for the past few decades.

In Comes the Financial Planner…

Having said all of that, I was able to attend the meeting their new (fiduciary) financial planner set up to “review” the accounts.  This was OBVIOUSLY an attempt to pull EVERYTHING into his Assets Under Management model, included taking lump sum rollovers from defined benefit pension plans.  No account seemed to be outside the scope of “I can earn your more if I manage it”  (hmmm, “can you guarantee that in writing?”)

The ideas I asked:

  • Should they keep their 401k and not roll over to an IRA (they are not yet 59 1/2 but separated from their previous company at 55)? Matter of fact, this acct was quickly rolled over to an UAM IRA before I could question the action.  Now it’s a 72t SEPP hassle versus a flexible “normal” 401k withdrawal.
  • Should they pay off the small amount of 5.75% mortgage?
  • Should they take advantage of the 12% federal income tax bracket and convert some qualified account money each year, before social security payments and IRA/RMD withdrawals begin?
  • Shouldn’t they consider taking the pension payments from the large stable company, rather than rolling it over to an IRA?
  • What if they feel more comfortable with a little more in their (non AUM) cash emergency fund than in their investment account?
  • Should they put $6500 of her work earnings into a Roth since there is already enough money in the cash account?

EVERY answer was no, except the Roth was a maybe—maybe because the Roth would still be AUM fee-able.   All other options lowered the amount of AUM.

In no way do I feel these answers were “in their best interest” but much, much more “suitable situation” answers.  Those are not fiduciary responses in my option.  To be sure, the 401k to IRA conversion the planner did clearly also shows an AUM strategy.

 

I can see how leaving your partner setup, with a list of accounts, and a simple strategy upon passing. (Love Letter)  Or at least having a financial planner that isn’t driving his AUM straight up.

Did I mention the fact that the AUM percentage fee would be more than our friend’s yearly gross from their part-time employment!?  How the presented “financial plan” that showed 85% success slyly listed the part-time income earning period as until “end of life.”  One way to make the plan “successful” was for our friend to work 4 days per week until death.  DO NOT TRUST AN ADVISORS PLAN IF YOU DO NOT UNDERSTAND THE VARIABLES THEY USED TO MEET THE SUCCESS PERCENTAGE.

 

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.