Hello, my wife and I are currently looking at ways to invest into the market for retirement purposes (we will retire in about 30-35 years) We are currently talking to an agent from Northwestern Mutual about opening a signature portfolio and investing in mutual funds. While this type of steadily appreciating assett is what i am after, i dont like the idea of having to pay a fraction of a percent to the mutual fund manager every year, plus an additonal 1.5% to Northwestern Mutual to manage our portfolio. Is there an easier or “more typical” way people are investing into the market for retirement that doesnt cost 1.5-2% every year? Saving for retirement outside of a 401k is all new to me.

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Werewolfdad t1_jael543 wrote on February 28, 2023 at 9:41 PM

Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics

Northwest mutual is the worst.

> Is there an easier or “more typical” way people are investing into the market for retirement that doesnt cost 1.5-2% every year? Saving for retirement outside of a 401k is all new to me.

Read the flowchart and do it yourself at fidelity, schwab or vanguard.

dmickler OP t1_jaew7rf wrote on February 28, 2023 at 10:56 PM

Thanks!

Fenderstratguy t1_jaenhgv wrote on February 28, 2023 at 9:56 PM

Fees will kill you over 35-40 years. The second reference shows a great table - a 1.5% fee over 40 years will rob your retirement portfolio of 45% potential growth! Add on another 30 years of retirement paying 1.5% and you are down by 65%!! Look into doing it yourself with a Boglehead 3 fund portfolio.

A 1% fee can cost millennials up to $590,000 in retirement savings https://www.nerdwallet.com/blog/investing/millennial-retirement-fees-one-percent-half-million-savings-impact/
Boglehead’s excellent table showing how much fees decrease your nest egg https://www.bogleheads.org/wiki/How_much_do_you_lose_to_annual_fees_after_many_years%3F

_Nuba_ t1_jael6wg wrote on February 28, 2023 at 9:41 PM

You do not need an advisor to manage your investments, especially when you have 30 years to retirement.

Put money in broad diversified index funds like VTI and VXUS or pick a Vanguard/Fidelity Target Date Retirement index fund. The fees are essentially 0. Break up with your financial “advisor” ASAP

/r/bogleheads

dmickler OP t1_jaewe7o wrote on February 28, 2023 at 10:57 PM

Thank you! How do you go about investing without using a 3rd party company like NM?

bros402 t1_jaf4v4l wrote on February 28, 2023 at 11:58 PM

Make an account on the website of Fidelity, Vanguard, or Charles Schwab.

Bad_DNA t1_jaeloqr wrote on February 28, 2023 at 9:44 PM

OP. Read, like actually read, what these people have offered. Trust yourself and your spouse. You can learn all you need from the resources recommended here - and save the fees.

kveggie1 t1_jaf0ubp wrote on February 28, 2023 at 11:29 PM

No, Run away fast. You will be taken to the cleaners. They have hungry commission based sales people. You are talking to an insurance pusher.... not a financial adviser.

open a brokerage account at Vanguard and invest in index mutual funds.

bros402 t1_jaf4s82 wrote on February 28, 2023 at 11:58 PM

No, run away from NWM. You saw a salesman.

If you are the average american couple, nothing big like a disabled dependent or anything like that - go to Fidelity, Vanguard, or Schwab and open a Roth IRA. Put up to 6500 in it a year and invest it in a target date fund (or something that tracks the S&P 500).

For your 401(k)s, put it in a target date fund.

Now you're ready to retire. Just make sure the money is invested - check every once in a while. Every month if that is how often you put money in the Roth IRA.

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