Seniors Handling Their Own Finances. Do You do it yourself?

L

Lon

Well-known Member
Location
Central California
Because for most of my adult working career was in the Financial Services field I feel quite comfortable in not having to rely on so called experts to advise me on some of the major financial decisions I have had to make in the past 12 months.
It's also my hope that handling my finances and keeping a broad interest in many things like I do will keep my mind sharp and defer or eliminate any potential dementia.
 

I have handled my own finances since I was a kid. I started writing contracts at twelve (for my band), doing my own taxes at fifteen, investing in the market at twenty-one, real estate at twenty-five. I would NEVER trust anyone to handle my financial affairs, no way, Jose! That being said, I am shocked by how horribly so many people bungle their financial dealings.
 
I handle my finances and investments without the help of a broker or financial planner, maybe I have a fool for a client LOL!!!

Over the years I've found that the vast majority of brokers and financial planners rely on the same canned information available to anyone that can read and that they all seem to spout the same conventional wisdom. IMO you should listen, do your own research and make decisions that are best for your individual situation.

As I get older I am a little concerned that I will know when it's time or have the opportunity to put my investments on automatic pilot while I run out the clock.
 

I've kept track of everything I spend monthly for years,see no reason to stop doing it works for me. I've been with my stockbroker since '93,he's made some very good investments,trust him wholeheartly. As for my taxes,I've been a client with H&R Block for many years,math has always been a problem for me Sue
 
My husband has handled all of our finances, taxes, etc. Which is good because he's very knowledgeable and I trust all of his decisions, he also did all the finances for his parents.
 
SeaBreeze said:
My husband has handled all of our finances, taxes, etc. Which is good because he's very knowledgeable and I trust all of his decisions, he also did all the finances for his parents.
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Not to be indelicate, but what will happen should he pass before you? Do you not think it might be a good idea to have him bring you up to speed on the financial scene that, one day, may be all yours to deal with?
 
The thought of turning over our finances to some one else doesn't work for me. I've always managed our finances but have included my wife in what we invested in and what our expenses are. I have no doubt I will be horizontal looking up under 6 feet of dirt long before she is. Knowing she will have no financial problems in either documenting incoming or outgoing is a relief.

Aside from that our sons have copies of our wills. In addition they are on the signature card to open our safe deposit box where they will find written info spelling out all our accounts so they know with 100% certainty what they should get.

Nothing worse IMO than those left behind not knowing what to do or how to do it.
 
I've always handled my own finances. Being single.....at some point I will need to get with a nephew and bring him up to speed on everything. I have a trail of documents that he could piece together, but need a good sit down with him.
 
treeguy64 said:
Not to be indelicate, but what will happen should he pass before you? Do you not think it might be a good idea to have him bring you up to speed on the financial scene that, one day, may be all yours to deal with?
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He's handled everything for years, but I know all that goes on and not in the dark about anything. I should be able to do what's needed should he pass before me, if not I'll have to get assistance. Our finances are not complicated.
 
Well, I have an MBA and a CPA license*, but no, I do not do my own. I do pay my own bills now, but my wives did that in past lives.

*Inactive since I'm retired - I'm obligated to disclose.
 
I handled our finances for decades until I finally got tired of it. Plus, we were getting nearer to retirement and I didn't want to deal with the tax decisions (not that they're that hard, but it's yet One. More. Thing.).

I used to work for an independent CFP so when my MIL sold her home and came to live with us, I asked him if he could recommend a firm that would "fit" her profile. She had a high six-figure account but was already diagnosed with mild to moderate dementia. Absolutely NO financial acumen at all. We are childless so if anything happens to us, she had no one else suitable to advise her.

He is semi-retired and a 40-yr veteran of the industry so has all the local contacts. He gave me three recommendations, so I had four referrals including his firm. All were firms that do no "hard" advertising so virtually all their business - 95+% - comes from client referrals.

We researched and chose one of the firms. Because we were referred by my ex-boss, it's the firm's founder who handles our accounts. We're probably the smallest account he does handle, LOL. The firm has been in business over 25 yrs and did an excellent job for her. They work in tandem with our tax advisor and estate attorney.

When DH retired, we chose to move his retirement account to the same CFP firm. Yes, we pay advisory fees. However, we have been very pleased with their performance. More importantly, because our own estate (which now includes MIL's assets, who passed on 2 yrs ago) is a healthy size, our own heirs also have the disadvantage of knowing virtually nothing about how to handle a 7-figure portfolio account, not including the RE and personal assets.

If we were disabled, our heirs know zip about dealing with pension, SocSec, and our long-term care insurance policies. They would struggle with the tax situation. IOW, they would need help in the form of reliable fiduciary advice, but would have no way to effectively find it.

Thus, we are comfortable using a firm to handle our investments - not for the biggest/best returns, but for the inestimable benefit of being able to rely on reputable fiduciaries to help deal with issues our heirs are unfamiliar with, having never faced them in their own personal lives.
 
I have handled my own as well as a few family members finances for many years. It has become a hobby that I find quite enjoyable, I went back to school in my 40's, at night, for my CFP designation. I keep up with researching the latest tax changes, researching estate planning, investing and have pensionized my investments, etc. I spend only a few hours a week on this, and the amount you can save from advisers and other fees are incredible. If you have a portfolio worth 500k and you are charged 1.5% / year that equals $7,500 do that for ten years and your adviser has made $75,000. Many charge more than 1.5% plus MER's from mutual funds and the cost really adds up. However, without some decent basic knowledge in the financial area, and you can lose big as well. Then your adviser is worth every penny. I have a few friends that went the DIY route and invested poorly and aggressively and acted on "tips" or something they heard on tv and lost big.
 
Lon said:
Because for most of my adult working career was in the Financial Services field I feel quite comfortable in not having to rely on so called experts to advise me on some of the major financial decisions I have had to make in the past 12 months.
It's also my hope that handling my finances and keeping a broad interest in many things like I do will keep my mind sharp and defer or eliminate any potential dementia.
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Brain-exercise, amen to that. Actually, I find these forums are good for keeping my brain exercised too;) And learning new things, new info. And there those things I would love not to have learned, lol!

I take care of my own finances because I don't make a lot in my retirement. I think if people have a lot of money, they have to have help. Or, if they are disabled. I think it would be hard to find someone you could trust, maybe family etc., but who knows. I hear the horror stories of someone taking care of another's finances, and ripping them off.

I think you are a smart feller Lon, first with your choice of careers, and then to be able to handle your own finances. Also very wise to keep that brain exercised;)
 
OneEyedDiva said:
I've handled my own finances since I was in my mid 20's and continued to do so when I started investing. Keeping track of my finances has become somewhat of a hobby for me. I actually enjoy doing it.
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I can understand this being fun for you. My favorite class was Math, and I couldn't wait to do the homework assignments. I think calculating, figuring out an equation is fun:)
 
OK, I spent much of my early adult life not being very responsible about money issues. When I started getting serious with my husband, I explained all this to him. It has taken a while but I feel I will not be able to handle things should he go before me. I also have a coule of trusted family members who have said they will be there for me if I feel overewhelmed.
 
Lon said:
Because for most of my adult working career was in the Financial Services field I feel quite comfortable in not having to rely on so called experts to advise me on some of the major financial decisions I have had to make in the past 12 months.
Click to expand...

I'm one of those nerds who started saving money from the age of 12 (paper route) and got into investing in my 20's. By my 30's, I was trading in individual stocks. I used to go to the library regularly (long before PC's) and read magazines such as Money and Kiplinger and take a notepad with me.
We were able to early retire in our mid 50's, 100% on our investments. I've always done my own research, and by often being contrarian, was able to be a successful investor. Wife was an accountant in a former life so she works the tax side of things (which I definitely made some mistakes on in the past).
What I dislike about 'experts' (aside from knowing they are wrong so much of the time), is that they just look at 'the markets'. I was successful because I often invested on the basis of macroeconomics, and still do. But, those of us who invest all have our own style. There are lots of approaches that work, more that don't. You can educate yourself if you put in the effort, understand basic math and stats, and are grounded in the basics of what equities, mutual funds, bonds, etc. are and can explain the risks vs. rewards of various approaches to investing.
 
Hi. I am a retiree and I do it myself. I have a 401k-type savings account that gives me about 30 funds to choose from, many of them being Vanguard funds. My career was not finance-related at all, and I always felt poorly informed about finance and investing, but in the past 5 years I have done a huge amount of reading about investing on a daily basis. I am pleased with the way my account is growing (easy to say right now, during a massively bull market!). But the reason I just joined this Senior Forum is that I am hoping to share ideas about 401ks and investing with other people. Among my friends, very few have a similar financial situation, and I am hoping to find more "peers" to talk to about investing.
 
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One size does not fit all.

What works for one person might not work for another.

One's financial plan should be custom made to fit one's personal mentality, ability and situation.

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