The Intersection of FIRE and Disney

coast2coastmickey

Mouseketeer
Joined
Apr 13, 2018
Hi everyone... new to this thread but I saw @SouthFayetteFan had started this one so I had to pop over and see what you're all chatting about. I didn't get through the last half of the pages but I did skim the first half.

I technically HAVE a financial planner but I am looking either for a new one (need tips on how to do that without hurting her feelings. She's a nice lady but quite frankly I am not convinced she is particularly savvy; plus she ONLY communicates by phone and that just doesn't work for me as I work nights and business hours aren't my thing) and/or how to move my current (very small) investments to 100% online. Anyone got any tips on either or both of those items?

Also, does anyone have a Coverdell for their kids? If you do, any thoughts on those vs a 529?

And, I do NOT contribute to my employer's tax deferred "thing" (457b) :o . I have avoided it all this time because I don't know enough about investing to even know if it's a "good" program or not. My question is, if it does NOT have an employer match, do you think I should look into it anyway? I do contribute a small amount to a Roth every month outside of work. A very small amount. Conversely, if I find out it DOES have an employer match, should I do it regardless of how "good" a program it is? What say you, wise DIS-ers?
Unless the financial planner is a family friend, realize it is a business transaction. Just be clear that you are terminating the business relationship and call it a day. Getting into the weeds or bringing emotion into it isn't going to help anything.

Regarding the Coverdell v 529 debate, here's a good website: https://www.chrishogan360.com/esa-529-comparison/

Regarding the 457, if it's tax deferred, chances are that the tax savings from your contributions will far outweigh whatever fees the investment options are within it. An employer match would be gravy on top of that. If you have a match that you're not taking advantage of, you're leaving free money on the table and that's bad. The only times you should not contribute to a tax deferred account are if the investment fees are sky high and include front/back end loads (aka initial/withdrawal fees) or if you are so hard up for cash that contributing to the fund would cause you to go into debt or lose a house. So in simple words, you should probably contribute as much as you can to it.
 

amalone1013

DIS Veteran
Joined
Jan 15, 2016
Came home yesterday to a package in the mailbox and thought hmm, that's not the right size for the one thing I'm expecting. What could this be? From Barnes and Noble?

My grandpa texted me last week that he was sending me a book that his financial advisor recommended to him for me and DH/our stage in life :goodvibes
 

coast2coastmickey

Mouseketeer
Joined
Apr 13, 2018
Came home yesterday to a package in the mailbox and thought hmm, that's not the right size for the one thing I'm expecting. What could this be? From Barnes and Noble?

My grandpa texted me last week that he was sending me a book that his financial advisor recommended to him for me and DH/our stage in life :goodvibes
What book is it?
 
  • amalone1013

    DIS Veteran
    Joined
    Jan 15, 2016
    Remember when I was excited about DHs company changing their 401k plan to a new company and it had way lower fees? Good news: It's done, the blackout period is finally over. I've been waiting and waiting so we can go in and increase his contributions. Bad news: They defaulted everyone back down to 4% :badpc: So it definitely won't be where we want for his checks this week - base pay and if he gets a commission check this month.
     

    speedyfishy

    DIS Veteran
    Joined
    Apr 3, 2016
    Lots of recession talk today. I’m really anxious about it. I’m not changing our investment strategy or anything I’m mostly worried about job loss. SO is a software engineer and he is really in demand currently but I worry. I was reading the comments on a NY times article weeks ago and someone was basically saying that things won’t be as bad as 2008 because of the gig economy. I don’t really agree with that because who is going to be ordering food delivery, grocery delivery and Uber’s if they don’t have a job. Also, I don’t think Uber and some of these apps would survive a recession. Uber is already losing a ton of money. They will be gone if autonomous tech doesn’t take off soon and once Uber has cars that can drive themselves there will be no gig economy.
     

    bernina

    DIS Veteran
    Joined
    Jan 25, 2014
    Lots of recession talk today. I’m really anxious about it. I’m not changing our investment strategy or anything I’m mostly worried about job loss. SO is a software engineer and he is really in demand currently but I worry. I was reading the comments on a NY times article weeks ago and someone was basically saying that things won’t be as bad as 2008 because of the gig economy. I don’t really agree with that because who is going to be ordering food delivery, grocery delivery and Uber’s if they don’t have a job. Also, I don’t think Uber and some of these apps would survive a recession. Uber is already losing a ton of money. They will be gone if autonomous tech doesn’t take off soon and once Uber has cars that can drive themselves there will be no gig economy.
    Along these lines, if we’re at least 10 years away from early retirement should we just stay the course through a recession? I’m not the type to hedge my bets and speculatively invest or reinvest (or yank money out when it’s low of course), we’re definitely passive when it comes to our retirement funds. We diversified the portfolio for our 401ks and Roth IRAs, have some mad money (not our emergency funds) in VTSAX, and max out and invest our HSA. Our emergency funds are in insured checking and savings accounts.
     
  • crisi

    DIS Veteran
    Joined
    Feb 25, 2002
    One way to look at a recession is that stocks go on sale. You need to be able to afford to buy them on sale, which can be problematic if you lose your job, but if you remain employed, a recession is a good time to cut your discretionary spending and up your investment. But at very least, don't yank out money - over ten years it will (most likely) bounce to where it was, timing the market on a fall is like catching a falling knife.
     

    speedyfishy

    DIS Veteran
    Joined
    Apr 3, 2016
    One way to look at a recession is that stocks go on sale. You need to be able to afford to buy them on sale, which can be problematic if you lose your job, but if you remain employed, a recession is a good time to cut your discretionary spending and up your investment. But at very least, don't yank out money - over ten years it will (most likely) bounce to where it was, timing the market on a fall is like catching a falling knife.
    Yeah, Im confident that the market will go up. The key is just trying to stay employed and keep investing.
     

    amalone1013

    DIS Veteran
    Joined
    Jan 15, 2016
    Good news, I infiltrated DHs new 401k account and it's still set at the same rate we had originally. Either DH read his email wrong or the HR guy wrote an incorrect email. This is 50/50 because the HR guy is terrible at his job.
     

    RamblingMad

    Mouseketeer
    Joined
    Mar 29, 2019
    Lots of recession talk today. I’m really anxious about it. I’m not changing our investment strategy or anything I’m mostly worried about job loss. SO is a software engineer and he is really in demand currently but I worry. I was reading the comments on a NY times article weeks ago and someone was basically saying that things won’t be as bad as 2008 because of the gig economy. I don’t really agree with that because who is going to be ordering food delivery, grocery delivery and Uber’s if they don’t have a job. Also, I don’t think Uber and some of these apps would survive a recession. Uber is already losing a ton of money. They will be gone if autonomous tech doesn’t take off soon and once Uber has cars that can drive themselves there will be no gig economy.
    I changed my investment strategy spring last year after reading a book about the bull market that ended in 2000. I’m now 50% in short term Treasuries that I buy direct, which means that as they mature I buy more. They’re commission free. And my 401k is 100% in the fund that’s equivalent to being in cash.

    If the market drops like it has in the past, I expect the bottom to be around a 50% drop from its highs. I’m in my 40s, so I don’t want to ride that out. At 22x trail earnings, I reasonably don’t expect my equities to grow more that nominal GDP annualized over the next ten years, which should be in the 4-5% range.

    As for the US we are more globally dependent than in the past. With Europe likely to go into a recession, our companies that operate internationally will feel some short term pain.

    I’m not ready to panic yet since I feel good about my portfolio allocation.
     
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