If u don't know there are firms that have structure that u suggested, you have no idea. Please have strong opinions on topics that u know the answer. Also, I never stated there are firm that give promises.
Retirement Targets
- Thread starter yowza
- Start date
LOL hopefully to retirement. I'm in my early 40's.
Somebody explain taking a loan out of your life insurance policy like I'm 8 years old. Is it useful or a bad idea?
1). Not good since it will end up requiring you to pay more over the life of it.
2). Now the real answer, unless you have major health issues, cash out and drop the whole/universal insurance and go term.
Before you do that, what is the interest rate that you will be charged for the loan? Is it a whole Life or Universal Lift policy?
This is correct. In most policies, u have a fixed rate, as long as u are current, that u can borrow from the life insurance company at a low fixed rate. The Company will then take your cash value as collateral.
Financial advisors making 1% of balance... can make 500k annually w $50m under mgmt. Thats like maybe 20-50 clients, depending.
Now consider how much time it takes to assemble a sane and balanced portfolio, and to use probably 80%of that same answer for almost all clients. At say, 4 hours per quarter of effort, per client, youre working roughly a third of the year and bringing in a cool half mil.
Yeah, they are definitely looking for clients!
Those are fair numbers, but remember that is before rent, staff (if needed), fees they pay to third-party advisors (like american funds) taxes, marketing, etc. The $500 is gross income, not take home pay. You were not saying it was take home pay, but I am pointing that out. No, I am not an advisor, but i do use one.
A neighbor of mine is a financial advisor. Drives really nice vehicles, has a boat, etc, etc…. and hardly ever works. Nice gig.
The great thing about the advisory business: everyone, and I mean everyone, is a prospect or a customer. All expenses:cars, meals, clubs, entertainment, etc, are deductible (only at the 50% level) from gross income.
I am in the process of investing as much as I can as I have been lucky enough to have a really good last 4 years.
I have maxed out my IRA the last two years, have an individual account with the same company that I have put money into as well.
With that, I have a good chuck of money to put somewhere and I don’t know what to do with it. I want to invest as much as possible. What do I do?
I have maxed out my IRA the last two years, have an individual account with the same company that I have put money into as well.
With that, I have a good chuck of money to put somewhere and I don’t know what to do with it. I want to invest as much as possible. What do I do?
Ir is impossible to give a great recommendation without the following: your age, savings rate, personal liquidity that u want that is not invested, the amount u have to invest, would this additional investment demand liquidity or could u not look at it for five years, is this vegas money or do u want little downside, etc.
I am not saying you give all of this on a masked, college board, but until all of this is reviewed you will receive opinions and not necessarily the correct answers.
Easy way out: buy a Treasury fund making 5.2%, buy a two-year cd making 4.5%, buy AT&T giving a 7% divi yield. Please note the AT&T has downside on stock price. Easiest recommendation if u have a long-term perspective is to buy an aggressive small-cap mutual fund.
State of IA has upped 529 tax deduct to $5500 per account.
We have been maxing that out and will continue to do so. A partial reason for that is because of the 529 to Roth rollover (which I also hope increases from the $35k).
Is there a reason why you wouldn't invest it in a taxable account?
Get that money compounding. It's still liquid if you need it. There is market risk, but if it's money you're trying to find a home for then market risk is low over a longer term.
Getting to $100k is a big hurdle. The Rule of 72 says it's going to double in 7-10 years depending on your returns in the market.
Throw it in a couple of market tracking ETFs and watch it grow.
(Not a financial consultant)
That's what I did when I got some money when my parents passed away. It's a managed account so I have to pay taxes on any captital gains from anything that is sold and any dividends that are reinvested so I have an extra $250 per paycheck withheld to help with that.
Then when I eventually have to takes RMDs I'll just deposit that into that account and keep drawing off that until I die or run out.
This is all so new to me. Didn’t really start making investable money until 2021. Have been putting Monday into the traditional IRA, as well as an individual account getting traded the same way.
Currently 34, 35 in August. Make six figures in a commission based job, and only have rent, and monthly insurance on car as set in stone bills. Car is paid off, student loans paid off, as well. I don’t buy a lot of things except groceries, out to eat every so often, and things like concerts, trips, etc.
I just want to be able to put as much away somewhere as I possibly can while maintaining some liquidity for emergencies but no more than 20,000 I would think. I’ve talked to a lot of friends to see what they do, and none of this makes much sense to me. I don’t want to work longer than I have to, and while the money I am making is very good for my situation I want to be able to start investing for down the road to make not working sooner a possibility.
*forgot to mention we do not have an employer match retirement account. Just started our company 3 years ago and not quite at that point to do so yet.
FWIW - once I had one year's living expenses in my checking account (that allowed me to sleep at night), I invested aggressively in individual stocks and higher risk small cap mutual funds. U can research on your own or higher an advisor. This is obviously your call, but u have to a strategy that u understand and hold yourself to this plan. It sounds like u are well on that way. Great job. Find out what makes u comfortable (for me, it was one year of living expenses in cash) and implemente it. Start swimming....
Not a financial advisor but to keep this very simple, this is what I'd recommend:
Put your emergency funds in an Ally Savings account (or another high yield savings account that doesn't charge fees).
I'd say 3-6 months of expenses is adequate, but obviously whatever makes you comfortable.
Think about if you lost your job today, how long would it take to find another job that would cover your bills and keep that amount.
Continue maxing out your traditional IRA - Invest in VTI (or another total stock index ETF with very low fees. VTI is a vanguard fund with an expense ratio of 0.05%)
I'm not opposed to a Roth IRA, but in my opinion you should be looking for tax deferment now and I'd prefer the traditional IRA in your situation.
Do you have the ability to open a Heath Savings Account? My employer offers this with our high deductible medical plan, but sounds like you are at a smaller company that may not offer this.
This is one of the best retirement vehicles to avoid taxes as the money in is tax free, it grows tax free and as long as you withdraw for eligible medical expenses, the money coming out is tax free.
Brokerage account for your remaining savings. Again I'd recommend simply buying VTI shares each month. Don't worry about the price per share, just put money in the account and buy on the first or last day of the month.
This is an easy set it and forget it investing strategy.
Beyond these, my opinion is your next step is to reduce your tax liability.
I'll guess you're paying somewhere around $30K in federal taxes and it sounds like you're already maxing out the deductions you have available to you.
Do you have any interest in owning a rental property?
One option would be to buy a duplex, live in one side and rent out the other.
Or simply buy an existing rental property.
This is a good way to take advantage of the depreciation on your taxes.
You could pay a CPA ~$500/year to do your taxes and ask them for tax advice too.
