tedclev

Basically the title. I'm interested what this community thinks of PCAOB Release 2023-003 (NOCLAR amendment), especially if any auditors would like to chime in. It seems to me like it's a huge costly solution for a minor problem and places too much liability/responsibility on audit firms. Isn't AS 2405 adequate as it stands?

This might belong more in coastfire, but ultimately I'd like this community's input.

My wife and I are both 39, two young kids. House paid off (500k equity roughly). Cars paid off, though I'll probably need to get a new one in the next year (I'm over 200k now). Kids' college already funded thru 529s. Both kids out of the house in 15 years. Zero debt. Roughly $80k in annual expenses, though that's going to drop by $10k in a year when our youngest starts school, but I still want to assume $80k annually. We don't live extravagantly but enjoy travel and don't really intend to increase our spending other than maybe a big splurge trip every few years.

Liquid assets... $1.1 million in taxable

I have a family member that wants to invest $500k in the market for long term safe growth and wants to entrust it to a financial advisor. I'm trying to explain that this is not a great option due to (1) virtually none of them beat the S&P500, and (2) the cost of managing the money. She sees a fee of 1% and thinks it's no big deal.

So let's operate on a couple assumptions here, namely that the advisor/manager is actually able to match SPY (average 10% annual growth) and that the fee is 1% of AUM.

On the first year, that's a $5,000 management fee. She sees that as no big deal. But I see that $5k compounding at 10% for 30 years is $87.2k she won't have. Now, moving on. Let's say her acc