Home     Forum     401k     401k Rollovers     Crypto Forum
    Register   Login   Members   Search   FAQs     Recent Posts    



Career Transition and the Future

Reply to topic
Money Talk > Retirement Planning

Author Thread
chuckvanderbilt
Member


Cash: $ 2.60

Posts: 12
Joined: 22 May 2012
Location: Texas
Career Transition and the Future  Reply with quote  

My wife and I started a business in March of 2011 while still working full time. The foundation was laid and the business grew enough for us to start considering changes.

I taught 7 years in public education and this year I did not renew my contract. I've been working our business full time since September 1. Also, my wife is transitioning from a salary employee to a contract employee in December so that her schedule will be flexible enough to also work our business. With both of us essentially changing our careers we are faced with question of what to do with our current retirement funds, as well as what to do going forward.

Being a former teacher, my retirement is in the Teacher Retirement System of Texas. To be honest, this fund has not been gangbusters. I am faced with the decision to leave it with TRS and let it gain 5% or move it with a brokerage.

My wife's retirement fund has performed much stronger than mine. I taught for 7 years, my wife has been at her job 5 years, and her fund has more than doubled mine. Again, the question is whether to leave it or move it.

There is also the question of what to do going forward. We are not in a position of trying to maintain and grow wealth. We are in a position of wanting to build create wealth. I know many people refer Vanguard as a brokerage. However, right next door to my business is an Edward Jones and I like the idea of having a face I can meet with.

Please discuss.
Post Wed Oct 24, 2012 2:42 pm
 View user's profile Send private message Visit poster's website
oldguy
Senior Member


Cash: $ 751.85

Posts: 3656
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
We are in a position of wanting to build create wealth. I know many people refer Vanguard as a brokerage. However, right next door to my business is an Edward Jones and I like the idea of having a face I can meet with.


Clearly, Vanguard is the choice for wealth building. Historically, successful wealth builders accumulate stock incrementally over a 30 year period and make use of the power of compounding. Eg, if you invest $417/m ($5000/yr) into an 11%/yr fund it grows to over a million in 30 years. (Factor the $5000 to match your goal, ie $10,000/yr = $2M, and so on).

But if you use a high-fee full service broker, and follow their advice to occasionally buy/sell, it is likely that the fees will exceed 2%/yr. So that same $5000/yr = $740,000 rather than $1,100,000. Ie, the 'advice' comes at a surprisingly high price - IMO it would be best to manage your own fund.

You might want to open both an IRA and a Personal account. The IRA is 'permanent', the money is locked away until age 59 1/2. But the personal account can be accessed at any time, you can sell some whenever you need to expand the Business, etc.
Post Wed Oct 24, 2012 4:26 pm
 View user's profile Send private message
steveeshairstyles
New Member


Cash: $ 0.80

Posts: 4
Joined: 05 Nov 2012
Location: bristol
 Reply with quote  

Career transition from social work field. Social Worker jobs ... I suspect there is going to be some future government type of forgiveness program.
Post Thu Nov 08, 2012 3:23 pm
 View user's profile Send private message
clydewolf
Senior Member


Cash: $ 50.25

Posts: 248
Joined: 27 May 2012

Re: Career Transition and the Future  Reply with quote  

quote:
Originally posted by chuckvanderbilt


We are in a position of wanting to build create wealth. I know many people refer Vanguard as a brokerage. However, right next door to my business is an Edward Jones and I like the idea of having a face I can meet with.


I agree with Old Guy, you can do this yourself and have the EJ fees in your account.

How to do this? Get some books at your library and read.
One book I like is The Sound Mind Investing Handbook by Austin Pryor.
Another good read is Beating The Street by Peter Lych.
One More suggestion, The Little Book of Common Sense Investing by John Bogle.
John Bogle is the founder of Vanguard.

These books are available at Amazon too.
Post Thu Nov 08, 2012 4:28 pm
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      


Money Talk © 2003-2022

Crypto Prices