Financial advisor???

[casa_mugrienta]

We have too much sitting in the bank, I never look at the balance and my wife showed it to me this afternoon and while I was presently surprised it made me sick at the same time.

We could pay off our mortgage and still have money in the bank but considering the coming inflation (yes, I know there is no inflation) and our very manageable mortgage being half the average rent for a unit in our area it seems like a dumb idea. I did look at doing a refi after my buddy got a 2.8% rate but backed off after they only offered my 3.4% for my current 3.8% (maybe because my place is a condo and his is a single family home?)

Our only debt is the mortgage, we own everything else.

The only money we have saved for retirement is my 403b, I contribute 4% because that's what the match is and whatever is happening in Wall Street looks like an amusement park.

Advice on how to find a decent financial advisor? I need to invest.

 

[grapedrink]

IMO you are doing a good job with savings and matching your 403b/401k or whatever. Pretty hard to beat an automatic 100% ROI, or even if it's only 50% that's still a good deal.

Definitely refi, even if it drops only half point or at worst $50/month that is still some good coin. I've refi'd thrice since I bought my house in 2015 and now my all in payment with prop tax is less than what my mortgage was on its own at purchase with 4% APR. Now is the time, or maybe 6-12 months ago was?

IMO there is no reason to pay off your mortgage except for peace of mind, you can easily beat the interest in the market with simple low-to-moderate risk index funds. I can understand the hesitation with buying in at what seems to be peak stupid, because it very well might be, so instead you could just trickle some in month by month ie "dollar cost averaging". Open a Roth IRA where you can both contribute $6k/year and the gains are tax free.

You don't need a professional, except for maybe a shrink if this stuff makes you nervous. Cash in the bank is great and all but you could have done a lot better over the last 5-10 years.

 

[bluemarlin04]

No reason to pay off the mortgage.

Do you have a Roth IRA?

Put money into index funds and split it between a couple different ones and that’s it. No need to complicate it.

I recommend using the funds based on withdrawal date.

Use Vanguard because the fees are lowest.


It isn’t complicated and there’s zero need for a financial advisor

 

[silentbutdeadly]

Why haven't you rented your place and purchased something else to live in?

 

[santacruzin]

What grape and sbd said

 

[bluemarlin04]

Why haven't you rented your place and purchased something else to live in?

Few thing about rental properties.

They are expensive and cost money. One vacancy is 2 months of mortgage payments. Stuff constantly breaks and by law you only have a certain amount of days to get it fixed before you get yourself into trouble.

The money isn’t easily accessible. If you sell you’re getting hit hard with taxes.

If you can handle the costs associated with then they can be lucrative investments.

But they do cost money.

 

[ajmojave]

We have too much sitting in the bank, I never look at the balance and my wife showed it to me this afternoon and while I was presently surprised it made me sick at the same time.

We could pay off our mortgage and still have money in the bank but considering the coming inflation (yes, I know there is no inflation) and our very manageable mortgage being half the average rent for a unit in our area it seems like a dumb idea. I did look at doing a refi after my buddy got a 2.8% rate but backed off after they only offered my 3.4% for my current 3.8% (maybe because my place is a condo and his is a single family home?)

Our only debt is the mortgage, we own everything else.

The only money we have saved for retirement is my 403b, I contribute 4% because that's what the match is and whatever is happening in Wall Street looks like an amusement park.

Advice on how to find a decent financial advisor? I need to invest.

consider a fee only advisor you dont get pitched anything and it can add some peace of mind. you can find them here https://www.garrettplanningnetwork.com
or here https://www.napfa.org/financial-planning/what-is-fee-only-advising

I am also in agreement with the previous posters on index funds. but what do I know.

 

[sussle]

consider a fee only advisor you dont get pitched anything and it can add some peace of mind. you can find them here https://www.garrettplanningnetwork.com
or here https://www.napfa.org/financial-planning/what-is-fee-only-advising

I am also in agreement with the previous posters on index funds. but what do I know.

This - would much rather pay someone's hourly to objectively evaluate my sh!t and tax consequences thereof. Do not want to be pitched on proprietary financial products by the person I have hired give me financial advice.

 

[bluemarlin04]

This - would much rather pay someone's hourly to objectively evaluate my sh!t and tax consequences thereof. Do not want to be pitched on proprietary financial products by the person I have hired give me financial advice.

If you want to be advised on taxes hire a tax accountant and make sure they’re licensed and pay them to do your taxes every year. They’ll advise and ensure you don’t hit any land mines

 

[SlicedFeet]

Financial Advisors are the thing of the past unless you have over $1m plus in cash and have kids. They would then set up trusts and also insurance policys to help cover estate taxes. The name of the long term game is capital preservation and tax avoidance. Of course if you‘re a full on liberal, that strategy does not apply.

Start out by putting 60% of your cash in an S&P 500 no load mutual fund. You can increase that ratio as you see fit, or outlook on the economy. Every financial advisor, trader, you name it tries to beat the S&P 500. It’s the benchmark. A lot don’t beat it. Maybe one year they did, over the long haul, few do.

Just because you put money in the market doesn't mean it has to stay there. Say you feel sh!t’s going to hit the fan. Sell some of the S&P 500 you have and increase your cash.

Then if any Financial Advisor gives you shade for just investing in the S&P 500, being a “passive investor” put your middle finger up their left nostril.

Of course we are at all time highs, but excess cash is a long term issue whether you like it or not. Time goes fast.

Back the the Financial Advisor, they are sales men plain and simple. Whether they realize it yet or not, their main goal is to get “assets under management” They have quota to meet, new clients to bring, in or they are let go.

Just go into your local Wells Fargo, etc, where ever your bank account is. Sit down with a rep and say, open an investment account and put this amount in an no load S&P 500 mutual fund. If they say anything else. Tell them they are incompetent inbacilibes, and ask them if this is how they want to start the relationship.

 

[bluemarlin04]

No. Don’t use anything but vanguard.

 

[JeffRSpicoli]

Worked in the industry for ~30 years in a variety of roles.

Before offering any proposal

What is the time frame before you use the money?

 

[casa_mugrienta]

Worked in the industry for ~30 years in a variety of roles.

Before offering any proposal

What is the time frame before you use the money?

We don't really use any money. Just save half of all income and then some.

 

[casa_mugrienta]

Part of the problem is I have no idea what you guys are talking about.

I know investing while ignorant is a good way to lose a lot of money.

Where is a good place to educate myself (would prefer not to use the internet to do so)

 

[casa_mugrienta]

No. Don’t use anything but vanguard.

Why

 

[casa_mugrienta]

Financial Advisors are the thing of the past unless you have over $1m plus in cash and have kids. They would then set up trusts and also insurance policys to help cover estate taxes. The name of the long term game is capital preservation and tax avoidance. Of course if you‘re a full on liberal, that strategy does not apply.

Start out by putting 60% of your cash in an S&P 500 no load mutual fund. You can increase that ratio as you see fit, or outlook on the economy. Every financial advisor, trader, you name it tries to beat the S&P 500. It’s the benchmark. A lot don’t beat it. Maybe one year they did, over the long haul, few do.

Just because you put money in the market doesn't mean it has to stay there. Say you feel sh!t’s going to hit the fan. Sell some of the S&P 500 you have and increase your cash.

Then if any Financial Advisor gives you shade for just investing in the S&P 500, being a “passive investor” put your middle finger up their left nostril.

Of course we are at all time highs, but excess cash is a long term issue whether you like it or not. Time goes fast.

Back the the Financial Advisor, they are sales men plain and simple. Whether they realize it yet or not, their main goal is to get “assets under management” They have quota to meet, new clients to bring, in or they are let go.

Just go into your local Wells Fargo, etc, where ever your bank account is. Sit down with a rep and say, open an investment account and put this amount in an no load S&P 500 mutual fund. If they say anything else. Tell them they are incompetent inbacilibes, and ask them if this is how they want to start the relationship.

I'm pretty uncomfortable placing my money in the stock market at this point.

That sh!t just seems like some ridiculous complex amusement park to me.

I try to stay grounded in reality, the stock market seems the opposite of that to me.

 

[SurfFuerteventura]

We don't really use any money. Just save half of all income and then some.

Cut half of one of your hours, or 25% of both.

Less savings, but better life quality.

 

[casa_mugrienta]

Cut half of one of your hours, or 25% of both.

Less savings, but better life quality.

I only work 3 days a week. I'm good.

I've tried to convince my wife to quit teaching and work as a private tutor/teacher - she is very good and can charge rates that are much more lucrative than her current classroom job - but she won't, for whatever reason. Seems dumb to me as she all ready has a small network of well-heeled clients she tutors for and is always getting additional requests.

 

[JeffRSpicoli]

We don't really use any money. Just save half of all income and then some.

Plenty of tools out there to educate yourself. It's really not that complicated.

But first you need to identify you time horizon: e.g. won't use the money for 7-10+ years then you can be more aggressive: using that timeframe alone a stock to bond mix of 85%stock/15% bonds or 70%stock/30%bond; that is if you are comfortable with market fluctuations.

If you have that long but are less comfortable with the daily/weekly/monthly ups and downs then you can give up some upside potential to limit downside then say something like a 60% stock/40% bond mix.

Just some high level discussion here, plenty of off the self mutual funds that have these "recipes" baked into their investment guidelines.

-and note the sub asset classes in the stock/bond selection is also important:
Stock = domestic some large cap, mid cap, small cap, international
Bond = Corporate bonds, government, high yeild

Again plenty of off the shelf products that do all of this already just make sure you are matching you time frame and comfort with risk accordingly.

We can get more in depth if you want.

Cheers

 

[casa_mugrienta]

Plenty of tools out there to educate yourself. It's really not that complicated.

Can you advise on what the good tools are?

It seems most of the education tools out there are either YouTube videos, bloggers, or people wanting to sell products.

But first you need to identify you time horizon: e.g. won't use the money for 7-10+ years then you can be more aggressive: using that timeframe alone a stock to bond mix of 85%stock/15% bonds or 70%stock/30%bond; that is if you are comfortable with market fluctuations.

If you have that long but are less comfortable with the daily/weekly/monthly ups and downs then you can give up some upside potential to limit downside then say something like a 60% stock/40% bond mix.

I'm 36 so guessing I have another 30 years before I would touch my retirement income.

However, not sure if I see myself living in my current location - or any city - 10 years out as development is exploding in my area and the zoning changes are set to make this place look like the East Coast.

Just some high level discussion here, plenty of off the self mutual funds that have these "recipes" baked into their investment guidelines.

-and note the sub asset classes in the stock/bond selection is also important:
Stock = domestic some large cap, mid cap, small cap, international
Bond = Corporate bonds, government, high yeild

Again plenty of off the shelf products that do all of this already just make sure you are matching you time frame and comfort with risk accordingly.

We can get more in depth if you want.

What about getting hosed on fees?

I had something called Euro Pacific Growth Fund.

That fucking thing made something like $250 over 10 years cause the fees were like $50/yr. Thank god it wasn't my money. I cashed it out and used it for a deposit on a board.