Meeting with the Money Guy

Mrs Mama and I both save 15% in our work 401ks, which means that our retirement savings is in pretty good shape — probably better than any of the rest of our finances. We also have rollover and Roth IRAs, but neither of us has contributed a new dime to those since 2005.

That said, we have a total of about $135k in all of our retirement accounts, combined. (Except for Mrs Mama’s ancient and tiny TIAA-CREF account, which we ignore.) Roughly$70k is in our direct control, with the other $65k in limited-option 401ks.

When I reviewed our retirement assets last month, I figured out that we have 26 distinct holdings, including 10 individual stocks.  Those assets range, individually, from being as much as 17% of our portfolio, to as little as .08%. Yes, that’s 8 hundredths of a percent, or $107.

Well that makes no sense. Obviously I can’t keep track of 26 different investments, and I’m not. It’s also silly to hold on to lots of little assets that are worth only 1-2% of my portfolio, or less.

So I asked a random financial planner guy who I met recently if he would review our savings and make suggestions. He’s coming over tomorrow with his proposed changes.

(Yeah, that could be the worst way to find a financial advisor, but his business model is to try to get me to transfer my accounts to him. Which I warned him was unlikely and offered to just pay for his review service. He declined.)

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