Career Transition and the Future |
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chuckvanderbilt
Member
Cash: $ 2.60
Posts: 12
Joined: 22 May 2012
Location: Texas |
Career Transition and the Future |
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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.
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Wed Oct 24, 2012 2:42 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona |
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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.
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Wed Oct 24, 2012 4:26 pm |
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steveeshairstyles
New Member
Cash: $ 0.80
Posts: 4
Joined: 05 Nov 2012
Location: bristol |
Career transition from social work field. Social Worker jobs ... I suspect there is going to be some future government type of forgiveness program.
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Thu Nov 08, 2012 3:23 pm |
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clydewolf
Senior Member
Cash: $ 50.25
Posts: 248
Joined: 27 May 2012
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Re: Career Transition and the Future |
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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.
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Thu Nov 08, 2012 4:28 pm |
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