Hi,
I'm new here. I came across this forum while researching an "investment" product recommended by a financial planner--Brighthouse Shield Annuity (either 3 or 6 year). When the financial planner recommended it (a year ago), I said I'd get back to him because I needed to look into it. One of my cardinal rules for managing my money has always been that I don't put my money in things I don't understand. It took me awhile to take a look at what he was recommending b/c I was busy working. So, a year later, I looked into it and (based in part on what I've read on this forum) decided I don't like this suggestion. In fact, I'm questioning whose interest my investment in this product would serve-- his, or mine?-- and whether I should trust this financial planner's advice at all. I don't have any other money invested with this person; all of my investments are in index funds (Vanguard) in a Schwab account. He simply helped me look at my budget and gave some projections for retirement based on my income, then recommended this annuity (I presume, because he'd make a nice commission off of it).
My sister and mother have a financial planner they use at Ameriprise-- they swear by this person's advice and have insinuated that I'm foolish for not having a financial planner. That person recommended a Long Term Care Insurance plan for my sister that she is paying into. I have no idea if that's something I really should do, too, though I distrust insurance to actually pay anything. I'm in healthcare; insurance companies are terrible when you actually need to use your benefits.
My financial picture is as follows:
Age: 55 y/o, single female, no children
Plan to retire at 70, maybe a little later (I like my job)
Employment: full time in a private practice that I own (small business, but no employees)
Assets:
~430K in a SEP IRA account at Schwab (this account has grown substantially over the years), invested as follows:
VOO (Vanguard 500 Index)--53%
VO (Vanguard Mid-cap)--14%
VIOO (Vanguard 500 Small Cap)--16%
VEA (Vanguard FTSE Developed Markets)--9%
$33K is in cash that needs to be reinvested
~140K in a Capital One savings account that is earning 4% interest
~80K in a business bank account (not interest-bearing, BofA account)
Debts: Mortgage at 3% interest; no student loans (I paid these off, despite returning to school for a change of careers in my 40s); no car loan on my 2019 Forester
I would likely inherit some money from my mother when she dies, but I don't count on that since I have no idea what the value of her estate is or how long she will live.
I'm thinking I should buy Treasury bonds (maybe a ladder?) with the cash sitting in my SEP IRA account, and maybe with future SEP contributions for the next few years to balance the portfolio? The money sitting in the Capital One savings account is actually earning a fair amount of interest-- close to what the Treasury ladder would get-- so I'm inclined to leave it there.
Every year, I max out my allowable contributions to the SEP IRA because it reduces my tax liability; I'll be transferring additional money from the business account into the SEP IRA account for my 2024 contribution in the coming months. The money in the business account is essentially my emergency fund-- it's over 6 months of income, and I'm comfortable with a larger cash cushion. Because I am self-employed, I don't have the luxury of a guaranteed income, though-- truth be told-- my income has increased every year. I'd like to have cash to do some things, like maybe remodel my kitchen, which is why I have parked a chunk of money in the Capital One account.
Do I really need a financial planner? I need to do some things like estate planning, writing a will, etc. But, this is the second time I've talked to a financial planner and said I need help with these (non-investment-type) things and been recommended a product that I found "suss" (as the kids say these days). He did not point me in the direction of someone who could help me with my will/estate planning, though I didn't press him on it after he recommended the annuity. It sounds to me like an annuity might be a good idea if I was close to retirement and wanted to convert a chunk of money into a guaranteed pot through an immediate annuity, but not this product the financial planner was recommending.
If I do go with a financial planner, I am leery of going with the one my family members are using for privacy reasons; I don't trust that the person won't disclose my financial picture to other family members (there are reasons I want to avoid this).
Thoughts? Am I on the right track?
Thanks!
I'm new here. I came across this forum while researching an "investment" product recommended by a financial planner--Brighthouse Shield Annuity (either 3 or 6 year). When the financial planner recommended it (a year ago), I said I'd get back to him because I needed to look into it. One of my cardinal rules for managing my money has always been that I don't put my money in things I don't understand. It took me awhile to take a look at what he was recommending b/c I was busy working. So, a year later, I looked into it and (based in part on what I've read on this forum) decided I don't like this suggestion. In fact, I'm questioning whose interest my investment in this product would serve-- his, or mine?-- and whether I should trust this financial planner's advice at all. I don't have any other money invested with this person; all of my investments are in index funds (Vanguard) in a Schwab account. He simply helped me look at my budget and gave some projections for retirement based on my income, then recommended this annuity (I presume, because he'd make a nice commission off of it).
My sister and mother have a financial planner they use at Ameriprise-- they swear by this person's advice and have insinuated that I'm foolish for not having a financial planner. That person recommended a Long Term Care Insurance plan for my sister that she is paying into. I have no idea if that's something I really should do, too, though I distrust insurance to actually pay anything. I'm in healthcare; insurance companies are terrible when you actually need to use your benefits.
My financial picture is as follows:
Age: 55 y/o, single female, no children
Plan to retire at 70, maybe a little later (I like my job)
Employment: full time in a private practice that I own (small business, but no employees)
Assets:
~430K in a SEP IRA account at Schwab (this account has grown substantially over the years), invested as follows:
VOO (Vanguard 500 Index)--53%
VO (Vanguard Mid-cap)--14%
VIOO (Vanguard 500 Small Cap)--16%
VEA (Vanguard FTSE Developed Markets)--9%
$33K is in cash that needs to be reinvested
~140K in a Capital One savings account that is earning 4% interest
~80K in a business bank account (not interest-bearing, BofA account)
Debts: Mortgage at 3% interest; no student loans (I paid these off, despite returning to school for a change of careers in my 40s); no car loan on my 2019 Forester
I would likely inherit some money from my mother when she dies, but I don't count on that since I have no idea what the value of her estate is or how long she will live.
I'm thinking I should buy Treasury bonds (maybe a ladder?) with the cash sitting in my SEP IRA account, and maybe with future SEP contributions for the next few years to balance the portfolio? The money sitting in the Capital One savings account is actually earning a fair amount of interest-- close to what the Treasury ladder would get-- so I'm inclined to leave it there.
Every year, I max out my allowable contributions to the SEP IRA because it reduces my tax liability; I'll be transferring additional money from the business account into the SEP IRA account for my 2024 contribution in the coming months. The money in the business account is essentially my emergency fund-- it's over 6 months of income, and I'm comfortable with a larger cash cushion. Because I am self-employed, I don't have the luxury of a guaranteed income, though-- truth be told-- my income has increased every year. I'd like to have cash to do some things, like maybe remodel my kitchen, which is why I have parked a chunk of money in the Capital One account.
Do I really need a financial planner? I need to do some things like estate planning, writing a will, etc. But, this is the second time I've talked to a financial planner and said I need help with these (non-investment-type) things and been recommended a product that I found "suss" (as the kids say these days). He did not point me in the direction of someone who could help me with my will/estate planning, though I didn't press him on it after he recommended the annuity. It sounds to me like an annuity might be a good idea if I was close to retirement and wanted to convert a chunk of money into a guaranteed pot through an immediate annuity, but not this product the financial planner was recommending.
If I do go with a financial planner, I am leery of going with the one my family members are using for privacy reasons; I don't trust that the person won't disclose my financial picture to other family members (there are reasons I want to avoid this).
Thoughts? Am I on the right track?
Thanks!
Statistics: Posted by drglitterpants — Fri Nov 22, 2024 6:48 pm — Replies 12 — Views 838