#RetirementPlanning #InvestmentStrategies #FinancialAdvice
Hey there, braintrust! 👋 Got a neighbour in a bit of a financial pickle and wanted to get your thoughts on what they should do with $300k as a retired couple! Here’s the rundown:
– $300k invested with an advisor charging $2.5k a year
– Investment mix includes 12 products ranging from fixed interest to high yield ETFs
– Performance is pretty average
– They don’t need the money anytime soon, house is paid off, and they live a frugal lifestyle
In my opinion, it might be time to simplify things and consider a bog standard 30/70 VAS/VGS split. But I’d love to hear your thoughts and suggestions! What do you think they should do with their investment? Let’s help them out! 💸💡
What do you think about simplifying to a VAS/VGS split? Or do you have another strategy that might benefit our retired couple neighbours? Let’s hear it! 🤔 #RetirementPlanning #InvestmentIdeas #FinancialPlan
lol they’re paying $2.5k, almost 1% and they are putting it in fixed interest and ETFs… that’s embarrassing that someone charges for that
Cut out the middle man and just invest it yourself in the exact same thing.
Best way to think of their current situation is they are a cow and being milked.
Vas/VGS is fine, so would DHHF or VDHG.
How old are they? Investing in high growth ETFs can be risky too as if bear market happens then this could wipe out their money. Their advisor investing in something average because likely trying to protect their asset since they are retired and elderly.
Edit: If they are old, then I’d just shove it in HISA and get ~5% interest.
12 products with just 300k and getting poor returns? Getting milked like Bessie the cow by the sound of that.
Simple DIY as you suggest would be far better.
Is super an option for them?
Things aren’t as always as simple as they seem. Might seem like a lot of money to invest 300k, but is the adviser also helping with Centrelink, budgeting, etc etc.
This is old people we’re talking about.
Can they DIY or are you going to be the adviser?
Is the VAS/VGS split appropriate for their circumstances?
What is the performance very average against? 100% stocks or 40/60 bonds/stocks.
financial advisors that do this have no shame. They obviously know that a passive mix can get the same outcome but they fleece these people nonetheless.
If I was retired it’d just be cold hard cash in a term deposit I think. Would still get about 15k p/a off it at the moment but also flexible enough that it’s still liquid and low risk enough that you don’t have to worry or manage it.
They don’t need an advisor for this, total waste of money. At their age they’re probably best on a HISA but they’d have to split it across a few banks to maintain the bonus interest rate across all the money.
Honestly, if you’re retired, you’re better off just putting it in an HISA.
Stick it in super and switch to a pension account.
Anyone who suggests anything different is wrong.
Work out a way to put a large portion in to super.
>$300k invested through an advisor that charges $2.5k a year.Â
I worked for years dealing with financial planners…vast majority were scum bags.
Ok..I am sure all the good ones are here
I would not provide financial advice because if it does backfire they have to deal with the issues.
No yes I would just put it in a EFT and some hisa.Â
if my house is paid off and im frugal are frugal.. id splurge on 2/3rds of it. theyre gonna die sooner rather than later.. id live a lil.
go live it up in Thailand or vietnam like a king for a decade and rent out their house here now.
The reason I’m being frugal in my 30s is because this would give me the chance to retire early. Unless they are planning to leave it as inheritance to their children, they should simply be spending more on things they like. Playing golf 5 times a week, buying a boat, buying a caravan, going to Bali, that is what retirement should be in my head.
It wouldn’t be sitting with an advisor that’s for sure. Either chuck it in super or an ETF mix.
No retired people in their early 60s with essentially a “spare” $300K needs it invested via an adviser into 12 different products. You say they have a decent pension, which, if they’re in their early 60s isn’t the government pension – thus they must have a pretty good chunk of change backing that up in some way, shape or form, and thus probably don’t need a financial adviser to negotiate the welfare system for them.
I’d say your analysis and recommendation is fundamentally sane, unless they’re going to be knocking on your door every time the share market drops going “What have you done with our money!!!???”
I’m always wary of that possibility when telling people what to do with their money. People with low financial literacy can panic easily. An alternative might be to park it in a couple of “old school” LICs such as ARG or AFI so they get roughly the same amount of dividends each six months which will slowly rise about with CPI, as will the share price. But then, you have to explain that option to them as well.
Money for old rope for the adviser I’d suggest, and the 12 products is just dumb.
I would be immediately depositing half of it into my personal bank account.
There’s definitely a lot of misunderstanding here. We don’t know any further details.
What service is the advisor providing? Is it just the investments or more things like dealing with Centrelink and so on. What is their overall financial situation?
I’d almost guarantee there’s more to it than just simply investing $300k.
Go to south east Asia and do threesomes, go wild.
Put it in Super
Why are you getting involved in your neighbours affairs? Have you lived there most of your life or something?
I work in a financial planning office and we have heaps of clients with $200k (some less) that we manage for them simply because they don’t want to and don’t understand how to. Sometimes paying the fees are paying for peace of mind.