The Sunday Best is a collection of articles I’ve curated for your reading pleasure.
Presenting, this week’s Sunday Best:
my portfolio. Dr. Linus of Dads Making Cents looks at mine and a few others with a different lens. 4 Physician Bloggers Reveal Their Investment Portfolios.
Do you anticipate changing your investment portfolio now that the pass-thru deduction (also known as Sec. 199A) is in effect? From Stephen Nelson of Evergreen Small Business, who understands the pass-thru deduction as well as anyone I know, Sec. 199A Changes Investment Portfolio Construction.
Josh could have built himself a huge portfolio as an airline pilot. But the Golden Goose Guide author chose a different career path to avoid the burnout and stress that seems to mimic many physicians’ experiences. Why I Left an Airline Pilot Career Worth $8.2 Million.
Are doctors rich? Is $10 Million Enough? Does money buy happiness? The Doc of All Tradez ponders the answers in The 10 Million Dollar Dream and the Myth of the Wealthy Physician.
Jason Fieber, Mr. Free at 33, answers one of the above questions while discussing the suicides of his mother and grandmother, and his father walking out on him as a young child. Money Doesn’t Buy Happiness: Some Thoughts on Recent Celebrity Suicides.
Money may not be the best currency for happiness. How about freedom? My pal Jim from Route to Retire is about to find out. Sh!t Just Got Real. Moving Early Retirement Up to 2018!
You know what doesn’t make most people happy? Working 75 hours or more per week. You’ve been there. So have I, and so has Brian from Debt Discipline. A tale of regret in Working Seventy-Five Hours a Week and Nothing to Show For It.
Instead of buying video games and other crap, Brian should have bought himself some stocks. Individual stocks aren’t always bad — I own one. Big ERN of Early Retirement Now fame shares the Good and Bad Reasons to Invest in Individual Stocks Rather Than Index Funds.
Dr. Cory S. Fawcett invested in stocks, real estate, and a timeshare. He’s made the most of his purchases, and he shares his tips for maximizing the value of a timeshare in these recent posts on the subject. I remain intrigued by the concept.
Here’s another couple of posts from a physician that might just make your life better. Dr. Scrilla evaluates the true cost of car commuting (it’s a lot more than just gas!) and offers his tips on bicycle commuting (takes no gas!).
- Cost of the Commute
- The Beginner’s Guide to Bicycle Commuting
A few weeks ago, I pledged to donate half of my proceeds from sales of The White Coat Investor’s inaugural conference videos to the Gofundme campaign for a friend of mine in Norway battling AML.
I am pleased to share with you that we donated $3,000 Norwegian kroner, or about $250 to the fund as the result of sales of the course that weekend. Currently, the campaign is nearly 2/3 of the way to the goal of $300,000 kroner and you guys and gals helped me make a significant contribution. I hope you find the videos to be valuable. I sure did.
Wedding Season is Upon Us
Last weekend, I stood up in a tux alongside some of my best friends from college. Twenty years after graduating from the university, I think the last of my close friends is now married. It was a busy and very fun weekend. A lovely ceremony, a lively reception that ended with the dancefloor chanting to the 12-piece band to play Purple Rain as an encore, and some very late nights in downtown Minneapolis.
This weekend, we’re in Michigan for a family wedding. I’m writing this prior to the festivities, but it promises to be another weekend filled with love, laughter, and hopefully just a little bit of rain. I brewed the beer to be served at the rehearsal dinner and will be functioning as the backup photographer throughout the weekend, as well.
A recommended Financial Advisor
A new feature to this site is a short list of recommended financial advisors. It’s short because I only wanted to include the best, lowest-cost, fee-only advisors who have been vetted by The White Coat Investor and me.
I am a big fan of DIY investing, but I realize that many physicians have neither the time or inclination to do so, and I don’t want my readers being taken advantage of by unscrupulous or ill-informed advisors. My recommended advisors do pay an advertising fee to be listed, but it is by invitation only.
The following is a description from the advisor and my comments will follow.
Integrity Wealth Solutions
Integrity Wealth Solutions approaches wealth management and financial planning differently. We’ve created a unique, tiered flat fee, asset management compensation structure designed with our client’s interests and success in mind. Our firm’s investment philosophy is centered on cost and tax efficient portfolio management, aimed to help the client retain more of their investment growth.
A cornerstone in Integrity Wealth Solutions’ financial planning process is the alignment of financial goals with insightful strategies that fit individual circumstances. We develop a holistic, customized, integrated financial plan that can evolve as the client’s needs grow and help clients maintain focus through the inevitable ups and downs of the market.
Asset Management Fees:
|Assets Managed||Annualized Fee||Quarterly Fee|
|$10,000,001 – $15,000,000||$25,000||$6,250|
|$25,000,001- and above||Negotiable||Negotiable|
Financial Planning Only Fee (without asset management):
The typical fee for planning service is $3,000; however, this fee can range from $1,000 to $5,000, depending upon the scope and complexity of the work to be performed.
5211 S. Quebec St. Greenwood Village, CO 80111
PoF: I generally dislike AUM (assets under management) fees, as the cost of advisory services increases dollar for dollar as your portfolio grows. Many firms have a 1% to 2% fee, and that is just too much. On a $3 Million portfolio, that equates to $30,000 to $60,000 a year. On a $6 Million portfolio, the advisory service would cost $60,000 to $120,000 a year.
While Integrity does charge a 1% AUM fee for beginning investors, that charge will never be more than $5,000 a year. As the portfolio grows, the charge as a percentage grows smaller. In the $3 Million to $6 Million range, you’ll have a flat $10,000 a year fee, as compared to the $30,000 to $120,000 a year fee some other advisors will charge.
In the $500,000 to $3,000,000 range, which is where many mid-career professionals’ portfolios will be, the annualized fee is in the $5,000 to $7,500 per year range, which I believe is a fair price for financial planning and investment management.
Have a blissful week!
-Physician on FIRE