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Hi everyone,
My wife and I are now finally done with school/training and fortunate to being entering a period of seemingly reasonable stability (at least relative to our past). Accordingly, we're trying to get everything lined up and do some long-term planning (house, retirement, things to think about as we look towards having kids and possible helping her parents immigrate and covering their expenses). I suppose by many standards we are in pretty good financial shape (zero debt minus a car we're paying off, solid salaries, saving > ~$1500/month). I'm nonetheless finding the process of sorting through all this somewhat overwhelming. Simple things like "Am I being reasonable about what kind of house we can buy, is it realistic to bring her parents over, how should we prioritize saving for a down payment vs. other savings, etc., how the heck I should be sorting out the bajillion options offered through our 401ks to make sure we're making the best decisions there, etc." So basically, I feel I can't manage my own life and want someone to help or at least sign off that we aren't about to do something insane like buy a house we can't afford given our other priorities
I'm wondering if anyone could:
A) Point me to written resources on this. The web is full of junk (from what I've seen). A good book would do wonders, but a bad book could do more harm than good so I'm hoping to get recommendations. This is sad, but at 32 years old I still feel like I need a primer on being a grown up.
B) How does one go about finding a good financial planner? I know to look for fee-only. Most I'm finding to fall much more on the "stock advising" side than personal finance issues like I raised above. Not that I'm against stock advice, but its not really my main concern at the moment (or at least not our only one). Frankly, I feel like I need just a ~2 hour consultation/lesson with someone who understands this stuff way better than I do.
Appreciate any suggestions you can offer! We're both coming from backgrounds/families where there was minimal discussion of money (largely because there wasn't any).
Try a CPA that also has the AICPA certification for financial planning.
You do not want someone to help with investments but someone to tell you how to plan your financial life. Finding a good planer is a very good idea.
Lots of books on investing and many of them have difference of opinion as to specifics
Might consider reading articles at site called AssetBuilder---guy who started it is SCOTT Burns, an MIT grad who was investment writer for Dallas Morning News (my local paper) for decades. Has written several investing books, some with Larry Swedroe who is probably better known that Burns. There are years of articles from his past paper blog and this new site. He is one of original partners for company that helps people invest in DFA funds (mainly)...run several different portfolios designed to fit risk profiles...the returns for past years are available on site for anyone to see...not recommending that company--
But the site has useful info and they are pretty transparent about how they invest people's money--not too complicated for choice...
And Burns has several portfolios he designed years ago--Couch Potato, Margarita, 5 speed--they use Vanguard funds for most part...
He is early believer in low cost funds, not paying high fees for managed funds that don't really provide any more success than wide spectrum index funds. Sort of Bogle head but his articles also touch on other aspects of financial life--buying home, college costs, annuities...
Some people recommend William Bernsteins 4 Pillars of Investing Wisdom and John Bogle's books and there is Boglehead site you can read w/o joining--lots of good info there from people who believe in low-cost investing, buy and hold for long-term...
If you want to ask question you need to join but don't think you get any spam from giving your email...
Try a CPA that also has the AICPA certification for financial planning.
You do not want someone to help with investments but someone to tell you how to plan your financial life. Finding a good planer is a very good idea.
The financial advisor we use now is a CPA, partner in the firm that did our business and personal taxes for 30 yrs probably. He runs their wealth management division and is a CFP...
My husband had income from a job but also had an S-Corp for years and over about the last 10 yrs it brought in quite bit of money. It was very helpful to have someone who had good tax understanding and knowledge about estate planning as we were getting older and moving toward retirement. I guess it depends on the firm as to whether a fee-only or % of assets under management would be the payment arrangement.
Thank you for all the responses so far! We'll definitely be looking for a fee-only CPA...our assets are minimal at present, so not sure someone would even be willing to take us on. Investing is really only part of the equation though - any recommendations on things like home ownership, planning for those costs, etc.?
Thank you for all the responses so far! We'll definitely be looking for a fee-only CPA...our assets are minimal at present, so not sure someone would even be willing to take us on. Investing is really only part of the equation though - any recommendations on things like home ownership, planning for those costs, etc.?
CPA's normally work on an hourly basis or a fix fee basis. You note that your assets are minimal. That is ok, you do not need someone that is going to invest your money and take a fee for it. You need someone to map out a financial road map for your life. Once you get some ideas you can probably go on without any hand holding for a few years and then check back.
I think you have a good handle on your circumstances and a few meetings with a professional planner will be very beneficial in giving you the confidence that you know what your are doing.
Hard to beat the bogleheads wiki for both personal finance and investment advice.
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