We have ten months reserve in the bank. Some of it is in a high yield CD at our credit union that doesn’t have a surrender penalty (just in case). It’s what makes us feel comfortable, and our monthly expenses aren’t exorbitant.
3 Likes
Bingo. We keep a tranche of available cash in a short-term bond index fund, and count that as part of our Asset Allocation.
Never understood using a HELOC, but then I’m in the hate-debt camp.
2 Likes
I have cash sitting in my retirement account. I’m guilty of not taking the time to figure out where I want to put it.
2 Likes
I have to admit I have way more money in “cash” (checking/savings) than I should - like enough to cover what pension doesn’t cover for multiple (4 or more) years. I am also paying a stupid amount for a financial advisor that doesn’t give much advice. I keep saying I’m going to fix both of these things…
3 Likes
We don’t have a particular set aside for cash (e.g., no emergency fund) but keep some liquid assets for potential large purchases (when we were thinking of buying a house in Florida for example). I imagine we will be shifting to a bunch of long-term bonds pretty soon as we near what may be a local interest rate peak.
In case of extended power outages/cyber attacks on the financial system, one of our FAs actually suggested keeping gold and silver coins in the house. We have a little but have not really done that.
1 Like
I need to, “dismiss,” my advisor as well. He’s a nice guy but not worth what he is paid. Trying to work through how to approach this, as my brokerage account has a bank account and credit card and debit card all associated with it. So, if I get rid of the wealth manager, I’ll have to get new cards, etc.
I’m sure it’s not insurmountable, but the older I get the lazier I get. I’m a fan of the easy button. Status quo is easier than change, but he’s costing me more than he’s worth. Just not sure where to start.
1 Like
open a brokerage account with Fidelity or Schwab or Vanguard and have them transfer your funds/stocks electronically.
5 Likes
Thanks, I get that part. 
The credit card I have is a perk of my account. That’s the part I have to figure out. The banking/CC side.
I think most of those companies have credit cards that go with their accounts. There may be minimums for perk-laden cards. In the dark ages, I had an account at Fidelity, used the money market account as a checking acount, and had a credit card, I think.
2 Likes
I’d be surprised if your CC is tied to your investment accounts, usually these guys have a relationship with a CC company, but it’s loose so you can probably keep it even if you leave the money manager. You might lose some rewards maybe.
I’ll plug the Fidelity credit card, 2% back on everything, no limit.
2 Likes
My manager and account are with Merrill Lynch. The Visa CC and debit card are through Bank of America and have Merrill Lynch and a big ol’ ML bull on the front of both of them, so that is why I am doubting I can keep them.
However, I haven’t explored options of staying with ML but just getting rid of the manager. I haven’t explored anything yet. I just started thinking about this yesterday after reading that above article. Coupled with receiving my estimate for my health insurance next year. 
Boo
So, I am just sort of rambling here as I think through what changes I might want to make as a way to keep more of what my money earns. As much as I like my guy as a person, I am not getting much value out of him. I think he plans to retire in a few years (he’s about my age), and I know he is setting up his son-in-law of one year to take over for him. I am not very impressed with the sil.
I appreciate any and all thoughts and ideas, so thank you! I have been on autopilot with ML/BoA for over 30 years, so it seems like a big change to me. I’ve had my current guy for at least 20 years. I’m probably anticipating it being more complicated than it is.
1 Like
Just switch to all index funds and simplify your investments.
The ML VISA debit card would be tied to the cash management account so yes, that would be lost. The VISA credit card is not linked so should be able to continue independently. I’ve glanced through their small print and there’s no indication of any ML account requirements to hold the card, and no annual fees.
You could do a quick call to the number on the card and just ask if the card is linked in any way to the brokerage account. It likely was a perk when you first established the brokerage account (you have to go through Merrill Lynch to get it initially).
I also endorse the Fidelity cash account. It comes with a debit card, but I never activated it because I only use credit cards.
2 Likes
While I understand the benefit of simplification, I have had some of these stocks well over 30 years. Close to 35 years, actually. Doing that would trigger a significant amount of capital gains tax for me.
2 Likes
I will look into that. Thank you. The card is tied to their, “signature rewards,” program, I believe.
I hope to get onto exploring these things sometime this week.
Our fee-only advisor told us that if we ever want to end the relationship, all we need to do is to have the firm’s name removed from the Schwab accounts that they set up. Since we’ve been happy to have his help for a variety of tasks and planning, we’ve not done this… so I can’t say whether it really works. (Although he does give general guidance on my Fidelity 401K in terms of total portfolio / asset distribution, I’ve kept it separate to avoid more fees.)
That is what can happen with Schwab of Fidelity, but ML may be a different thing. She can research her options with ML.
I think @Hoggirl can set up an account and transfer ‘in kind’ to Schwab or Fidelity and let all her stocks transfer to new account, with all intact. She can then decide if she wants to use one of their advisors with managing her account - or can self manage. Or talk to a Schwab or Fidelity investor advisor, and see what she wants to do.
2 Likes
yeah, don’t be incurring taxes just for simplification. If you have any stocks that you no longer want to keep, consider donating them to yoru favorite charity.
2 Likes
For the annuity fans, a good explanation of the investment “payout” and purchase timing (>60) by nisiprius
“I am very much in favor of SPIAs for a) me in particular, b) anybody whose retirement savings are in the general area of “just about enough but no more.” Several things need to be kept in mind.”
https://www.bogleheads.org/forum/viewtopic.php?p=7503466#p7503466
2 Likes
Good point. Also it could I think be turned into a DAF (Donor Advised Fund) with flexibility on future charitable use. But it MUST be used for donation… can’t change your mind. (Beneficiaries too must use it for donation.)
fyi @Hoggirl Link from Schwab, but DAF is general thing you could do at Fidelity etc
https://www.schwabcharitable.org/donor-advised-funds?bmac=uum&gclid=CjwKCAjw-KipBhBtEiwAWjgwrGeU2a0g2h0WQlOlY6N3v34hcg6LUFPtP27DLc46k3xomhUWwOPAzhoCve4QAvD_BwE
1 Like