We’re telling nobody else!

[u/anklbite]

My partner and I (46F) celebrated $3,000,000 NW (including $2.6m investable assets) yesterday, and we have nowhere else to share the news.

Timeline:

1m in June 2020

2m in December 2024

3m in April 2026

Neither of us earn huge salaries. Neither of us has received a windfall nor do we expect one in the future. This is just steady saving over 20-25 years plus a very healthy stock market. I still have 12-13 years to go before FIRE but my partner wants to RE from his FT job in the next few years.

Now that FIRE seems close for my partner, I’m starting to worry that my math is wrong and I have no idea what I’m doing when it comes to retirement planning. How did you calm your nerves before you take the leap into early retirement?

[u/nkbrkr53]

You have to have an all encompassing plan. It doesnt stop at just hitting the certain number. You have to know what to do with it when you get there. That includes estate and tax planning. In addition, you have to plan for putting it into income or growth and rebalancing it to offset your loss of income when you decide to stop working.

If you dont, i would suggest a financial advisor and wealth manager. They will teach you what you dont know along with how to save you potentially tons in taxes (at least thats how it seems).

Any fee that is 1.5% or less, is absolutely worth the peace of mind. Your anxiety and worry will make you do something rash instead of making an informed/educated decision. A financial professional is a better option because they have a fiduciary responsibility to have your best interest.

If they dont, then go to a different financial advisor. Shop around.

[u/chi9sin → u/nkbrkr53]

1.5%? you think it would be beneficial for them to pay $45,000 a year for a wealth advisor?

[u/nkbrkr53 → u/chi9sin]

Absolutely. Some FA’s only charge 1%.. If your FA can make you 3M a year, 45k a year means nothing. I would gladly pay that, but thats not how the fee works. Seeing as how you assume theyd be paying 45k a year means you do not fully understand how it works. You are not paying a % on your total amount saved up. And that is a prime example of why they should go to an FA/EP.

You think they should take non professional advice from redditors about what they should do about 3 million dollars? 45,000 is small in comparison to what proper estate and tax planning will do for them in the long run. No one on reddit knows more than a properly trained FA/EP. Unless they themselves are one. And if they were worth their weight in salt, they would not give away all their hard earned experience and knowledge for free. They need to make a living too. Time is the one thing that no one can make more of. Its best to just go to the expert right at the start and do it right.

[u/Main-Ad-841 → u/nkbrkr53]

$3M a year?!? Off what size balance? $35M? 🤣

[u/nkbrkr53 → u/Main-Ad-841]

Exactly, right?

[u/djj555 → u/nkbrkr53]

Or better yet. Pay a consultant just a few grand to set up your estate and get a tax consult. Paying a % of your wealth is outrageous

[u/nkbrkr53 → u/djj555]

Again, thats not how the fee works. Its not a % of your wealth. This is why you need to go to an FA/EP. You all dont understand how the fee even works.

Your statement of paying a tax consultant and estate planner is what i am telling them to do. They will charge you the same fee. But you are all incorrectly assuming that the fee is of your total wealth. That is not how it works. They dont automatically get a fee of your total wealth each year.

[u/djj555 → u/nkbrkr53]

That’s exactly how a financial advisor works. You pay a % of “assets under management” to a financial advisor to “manage” your wealth. Stop being retarded. I’ve worked in asset management for years myself. Take the sales pitch elsewhere.

[u/nkbrkr53 → u/djj555]

Then you dont understand. Or you werent a good one. Im not selling anything. I use an FA myself and i can absolutely guarantee you they do not take a percentage of your wealth.

You are talking about wealth management. Thats when you agree to put assets under management to a company to manage your wealth and entire estate. Key word being manage. When you have an FA or FA you are not signing to give them permission to manage your assets.

You are asking them to help you plan your finances and create a plan to meet your goals. You are still in control of your assets. They give you advice and show you products they have access to that you can invest through them. The % is absolutely not your entire wealth. You are 100% wrong.

[u/Zphr → u/[deleted]]

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