Financial Planning / Investment Advice

[JAG]

As some of you may know, I'm newly married (yes yes, thanks for your condolences. :) ). My wife and I have just started work on getting our finances in order and it came to me that I didn't recall ever seeing any threads on general saving / fiancial planning advice. We're basically looking to save for the whole gamut of house, kids, and retirement and we were thinking of going to some professionals for assistance. What kind of experience have people had in the area of financial planning as far as groups to stay away from or groups that have been extra helpful? Any particular areas of investing we should consider? I'd basically be interested in hearing any stories people can relate on this topic. Thanks all.

[sachmo71]

I hired a finacial planner through American Express. It was relatively inexpensive, considering how little I know about finanaces. She really helped us get the ball rolling on saving for the future, and on how to budget our money better. I would say that she saved me about $5000 this year alone, so to me it was well worth the $750 fee.

[Draft Dodger]

we're going to see a financial planner sometime this year - not so much for existing finances, but more to make sure we are on track for retirement.

[Hammer755]

Before our son was born, we went to a local financial planner that was recommended by Dave Ramsey (www.daveramsey.com). She set us up with pretty much everything we needed to plan for our son's future - Investments (we opened a pair of Roth IRA's), life insurance, as well as recommendations for my 401k.

[Cap Ologist]

Before our son was born, we went to a local financial planner that was recommended by Dave Ramsey (www.daveramsey.com). She set us up with pretty much everything we needed to plan for our son's future - Investments (we opened a pair of Roth IRA's), life insurance, as well as recommendations for my 401k.

I'd also recommend visiting Dave Ramsey's site, he has really helped me out a lot. I think you can get some good solid advice from him.

[Subby]

Max your 401K. Buy a house. Set up a college savings plan.

Those are the only investments you really need.

That will be $750, please.

[Draft Dodger]

Max your 401K. Buy a house. Set up a college savings plan.

Those are the only investments you really need.

That will be $750, please.

will you accept a semi-used copy of Net Detective?

[wig]

Invest in Spam

[Radii]

go read all of the free savings/paying off debt/investment/IRA/college fund type articles over a the Motley Fool (www.fool.com). Learn as much as you can before you go spend a bunch of money for professional advice, the advice will mean more that way.

[Franklinnoble]

There's nothing better than a good accountant. I managed to find a guy at my church that has been invaluable. He does my taxes every year for about what it used to cost me to buy TurboTax, and I get better refunds. He's also plugged into the local financial community and has been able to find me help with everything from estate planning to mortgage banking.

[Philliesfan980]

There's nothing better than a good accountant. I managed to find a guy at my church that has been invaluable. He does my taxes every year for about what it used to cost me to buy TurboTax, and I get better refunds. He's also plugged into the local financial community and has been able to find me help with everything from estate planning to mortgage banking.

*CRINGES*

I'm an accountant... its April 14th.. bring on the questions.


Yes, I work in public accounting, not some clerk job.

[Philliesfan980]

Dola.. Wow, Sorry about the last message, it sounded really snotty..

You'll have to forgive me, I'm a little on edge.

[Rizon]

*CRINGES*

I'm an accountant... its April 14th.. bring on the questions.


Yes, I work in public accounting, not some clerk job.

You damn accountants are all shady!

[JonInMiddleGA]

You know my motto ... Don't Trust Anybody.

One of the few exceptions to that rule is my accountant, and now, financial advisor.

We've known him for more than a decade, I know of no one who I believe works any harder than he does to live by his principles both personally & professionally. I don't believe he's ever given us any advice that wasn't made with our best interest (not his) as the primary motivation. I wouldn't want to be without him & his help.

So to answer your question ... yeah, I'd saying finding a pro is a pretty good idea ;)

[Draft Dodger]

which reminds me - how much do they normally cost? is it a per sitting or yealy basis? a % of income?

[Peregrine]

JAG, I highly recommend the information and advice you will find on the Motley Fool, www.fool.com. It's been very helpful in getting my financial life organized. One of their main thrusts is that you don't need to hire a financial advisor, for the most part you can do the research yourself and save yourself some cash.

[WSUCougar]

My wife and I had a very positive experience with a financial planner from American Express. He was recommended to us by a co-worker.

Basically, we had an initial meeting which involved a friendly discussion of "where we want to be" in terms of goals. He asked such questions as:

What do we want to save/spend money for/on in our future?

Do we want to upgrade our house? Car(s)? Travel? etc.

Are we saving for our son’s education, and if so, at what desired level?

When do we want to retire?

What standard of living level do we want to be at for retirement?

Is it more important to retire early, or with more money?
He then gathered information from us about income, debts, and so on, and plotted our financial situation and possible directions using his financial software system.

He also addressed such things as:

Our will/trust – he drummed on this one BIG TIME. Basically, make sure you get one.

Insurance needs, risks, gaps, etc. This was an eye-opener for us. It was too easy to make assumptions that we were covered in many instances (such as disability). He showed us where the gaps were.

The difference in taxes for investments. Key elements here were when the money was taxed, the intended use of the money, whether withdrawals will be needed, etc.

He loves Roth IRAs. What’s not to love? He recommended this even over the educational saving funds available.

So in the end we got a host of pertinent general information, a detailed plan mapping out our current situation and financial future, and a good working relationship with the guy.

All for $150.

[JAG]

Lots of conflicting thoughts here, but it's good to hear both sides. I've been looking online recently for information on a few different sites. I haven't looked that much into Motley Fool, but I've heard good things and I will definitely check that out. I'm not sure if we will for sure get professional help, although we're probably leaning that way.

[Peregrine]

He loves Roth IRAs. What’s not to love?

They are certainly a very good thing, and easy to set up and invest in. Since the contribution limits are pretty low, $3000 depending on income, it's a good thing to get in the habit of doing every year.

It's silly also, but many people don't even utilize their 401k plans through work nearly enough. You definitely need to contribute at least to the employer matching level, and really maxing it is a good idea, it reduces your taxable income and lets you sock away retirement money automatically. Of course the fund options people have can differ pretty wildly depending on who they work for.

[Peregrine]

JAG, the Motley Fool has a lot of info on it's site, and it also has message boards that are filled with a large number of extremely financially knowledgable people. I have learned so much from them it's not funny.

Here's their basic 13 steps for investing, which you might find useful. The important things at first are to take an honest look at your financial situation, reduce debt as much as possible, establish some emergency savings in case of major life changes or job loss, etc. These are all covered in the steps:

http://www.fool.com/school/13steps/13steps.htm

[Franklinnoble]

Well, I spent the first 10-12 years of my adult life handling my own finances without much professional advice, and I have since seen the light. For what a good accountant or financial planner will cost you, it's almost stupid not to have one. Others' experience may vary, but my only regret is not getting professional advice sooner.

[Philliesfan980]

They are certainly a very good thing, and easy to set up and invest in. Since the contribution limits are pretty low, $3000 depending on income, it's a good thing to get in the habit of doing every year.

It's silly also, but many people don't even utilize their 401k plans through work nearly enough. You definitely need to contribute at least to the employer matching level, and really maxing it is a good idea, it reduces your taxable income and lets you sock away retirement money automatically. Of course the fund options people have can differ pretty wildly depending on who they work for.


Also the thing about 401k is the vesting period. Currently, mine doesn't "vest" until after 5 years, which is almost an eternity for a job now.

But all in all, a GREAT investment. Whats not to like? Free money!

[Daimyo]

At a very minimum put 10% of your pre-tax income in a 401k/403b invested in mutual funds... if you start young enough that alone will build a huge nest egg by retirement time.

[randal7]

Get Mutual Funds for Dummies and Investing for Dummies, and Andrew Tobias' book (the title of which I forget). After reading them, if you feel adventurous, get Bogle on Mutual Funds by John Bogle, which is very stat-heavy but is the single best investing book I have ever read. You can also get good, unbiased investing advice at www.vanguard.com (Vanguard is a non-profit company). If you are willing to accept that shooting for those well-above-average returns people brag about is the same as going to a casino, you can handle your own investments. If you want to gamble on big returns, you probably better get help.

[finkenst]

well, first and foremost...
if your employer offers any match to 401k/403b, etc... Put in at least the matching amount. If you don't you ware turning away FREE money... Need we say how difficult it is to turn (upwards of) 100% ROI on any investment?

Yes, the vesting period varies. My old employer was 5 years. My current employer is 100% vested immediately, so i got that going for me.

that said what's been recommended to me is: Max the match on 401k/403b/tiaacref, etc .. Then put the max into a Roth IRA (if eligible), then max the 401k contribution (13k this year?) if you can.

there are some other things to do, of course.

[Peregrine]

that said what's been recommended to me is: Max the match on 401k/403b/tiaacref, etc .. Then put the max into a Roth IRA (if eligible), then max the 401k contribution (13k this year?) if you can.


Yeah, this is a good approach. My plan is to get close to maxing my 401k, percentage wise (I don't want to put non tax-deferred money in there, though that is available) and max my Roth IRA and make sure I have a good amount of emergency savings. Beyond that I can put the money in a taxable account or use my DRIP plans, I'm focusing on the latter at the moment.