I know this is not the best place to get good feedback, however I am finding it difficult to get "honest" input anywhere. For those that have left, or are still with the company , any recommendations on a company (The Retirement Group, Quotient Wealth, Fidelity, or others) that can help to navigate and manage pension, 401K, etc? I am not savvy in this area and would like some help until I am confident to do it on my own or keep it longer term with support. I think a fiduciary is important. Please just helpful comments and maybe that is asking too much on this site. Thank you.
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@OP Did you find a company to help manage your assets? Or are you managing it yourself?
I used Chevron-sponsored advisors for ten years, but found them unhelpful. They provided generic advice while pushing to manage my assets for a high 1% plus fee, all while being evasive about their fiduciary status and actual returns. Now that I’m retired and better educated on the topic, I see that their recommendations—like using actively managed funds or doing jumbo Roth conversions—were often wrong.
My advice is to keep it simple: use low-cost broad market index funds to keep your total fees around 0.1%. If you need help with estate planning or complex tax strategies, pay a specific fee-for-service professional rather than a generalist asset manager. You will get better advice and keep more of your returns."
@gy It has been conclusively shown that stock pickers do not outperform the market and the majority of time under perform. Over time, market index’s beat financial advisors and it is not really close. An advisor can be helpful in the broader picture of estate planning, life insurance, how to plan for RMDs, whether refinancing is better than investing, etc.
"They will actively invest and should theoretically beat the market by more than their 1% AUM fee". Great "theoretical" sales pitch. In reality no active investor consistently beats the market for 2-3 years let alone over the 15-20 years that an average employee lives post retirement. Do the math and see how much a 1% annual management fee actually costs. It is a myth that any financial advisor is going to beat the market (S&P 500 etc.) by the amount of their annual fee over a multi-year period. They will not even come close.
Rhame & Gorrell if you’re in The Woodlands
Willis Johnson if you’re in Houston.
They both understand the nuances of the Chevron 401k, which is more complicated than the average retirement plan.
They will actively invest and should theoretically beat the market by more than their 1% AUM fee.
Good luck out there!
Too much emphasis on the 1% fee that most financial advisors charge. Are you getting “value” and service (including tax advice, RMD and estate & gift advice or referral to tried expert)? Understand that you are “paying “ a fee for mutual funds like Fidelity and Vanguard (read the annual report for built in admin fee in mutual fund expenses)
My recommendation is to interview prospective advisors while still on the CVX payroll and talk w CVX clients of prospective advisors to understand their experience
Talked to a lot of advisors. Quotient does a nice job because they look at everything- taxes, insurance as well as your finances.
Ask the same questions on Bogleheads. Nothing glamorous, but can get the job done for majority of people. A whole lot better than a lot of other advice out there.
Just stick with Fidelity. Tried other for fee advisors and Fidelity does it as part of the Chevron service. No extra fee and very similar advice as outside fee services.
Henderson Hutter Group out of New Orleans knows the Chevron System inside and out.
I am struggling with the same decision…..advisor vs self manage. At .75% of assets, that is a lot of $$$$ every year.
You are 100% correct this is not a site to trust. However, what the last poster said about VTI (total market index ETF)and it's mutual fund equivalent is pretty solid. And if you need/want bonds it's BND, a total bond market ETF(Vanguard) . Some people feel safer with some bonds. 60/40 stocks/bonds is a traditional split. Check the bogleheads forum.
There are also Fidelity equivalents of the Vanguard funds mentioned.
You don't need an advisor. Take the pension as a lump sum. Move the 401K to Vanguard for lower fees. Invest everything in VTI or VTSAX. Chill.
Retired in 2017 and have used Vanguard only. I checked out Charles Schwab but decided to remain with Vanguard as it was Chevrons retirement plan before moving to Fidelity I think it was. A simple mix of equity funds both U.S. and International ETF’s. Also a mix of Bond ETFs and Indexes again both international and U.S. Funds. It’s about a 65% Equity Mix to 35% Bonds. Honestly I have more retirement funds now than when I retired plus SS between my wife and I. The markets have been doing well in the last several years. So depending on your stress levels you can be both aggressive or passive investing which is what I chose. Remember markets can turn on a dime. So don’t be discouraged when you hit a rut. The markets always recover over time. I sleep very well at night using Vanguard. Like anything you need to do your own research on what firm suits you best for your needs and risk tolerance. Good luck.
Look for flat fee advisor service and low load index ETF equity and bond funds. Competent advisor can be had for $5k-$7k/year. Don't fall for percentage of assets fee and "we do better when you do better" bs. No one has the secret sauce formula that consistently beats the market although it does stop them from claiming it.