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I need financial advice...but don't know who to ask

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stu_tv
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I need financial advice...but don't know who to ask  Reply with quote  

Hello all,

This is my first post.

I am currently finishing up some post-graduate training and will shortly begin my first "real" job which pays $98,500 annually.

I am currently carrying $115,000 in student loans, $3,000 in credit card debt, and have $86,000 left on more mortgage. In addition, I am married with 2 small children.

Tonight I began my search for a financial planner to (obviously) help develop the best plan for me to repay my debt and start investing in my family's future. During my search I found some very reputable financial planners operating on a fee-for-service basis. However, these individuals/firms seemed most interested in meeting 5-10 times per year.

I don't think I need this aggressive of a service. What I believe I need is someone to help formulate an initial financial plan who I can then meet with every 1-2 years or as needed.

My attempts to locate a unbiased person/service such as this in or around the state of Iowa have been unsuccessful.

Can anyone help?

Thanks,

stu_tv
Post Thu Jun 30, 2011 3:39 am
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coaster
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I agree that the frequency they want is too often for you; however, the frequency you want is not often enough. Things can change rapidly, especially at your age, and especially with respect to your financial situation. I think twice a year should be adequate for both you and your planner, with a couple extra meetings up front.

You're well-advised to consider fee-based planners. I understand the fees can be a serious hurdle at this point. Be sure you communicate this. I think that a person who wants to gain you as a lifetime client will cut you some considerable slack right now.
Post Thu Jun 30, 2011 7:14 am
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oldguy
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quote:
I am currently carrying $115,000 in student loans, $3,000 in credit card debt, and have $86,000 left on more mortgage. In addition, I am married with 2 small children.

help develop the best plan for me to repay my debt and start investing in my family's future.


Great starting salary!

A key concept is income stream allocation. Eg, if you direct $10k/yr into 11%/yr investments for 35 yrs, it will be $3,800,000. Or, if you direct that $10k/yr into prepayment of debt for 10 yrs and then start investing, you will have only $1,270,000 after 35 yrs.
So be careful of the "get debtfree" advice, it has the ring of purity - but it can be expensive. Keep your longterm, low rate loans (usually mortgages & SLs) for full term - and quickly dispatch your shortterm, high rate loans (usually revolving consumer credit).

(An old Iowa U grad)
Post Thu Jun 30, 2011 2:33 pm
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littleroc02us
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quote:
Originally posted by oldguy
quote:
I am currently carrying $115,000 in student loans, $3,000 in credit card debt, and have $86,000 left on more mortgage. In addition, I am married with 2 small children.

help develop the best plan for me to repay my debt and start investing in my family's future.


Great starting salary!

A key concept is income stream allocation. Eg, if you direct $10k/yr into 11%/yr investments for 35 yrs, it will be $3,800,000. Or, if you direct that $10k/yr into prepayment of debt for 10 yrs and then start investing, you will have only $1,270,000 after 35 yrs.
So be careful of the "get debtfree" advice, it has the ring of purity - but it can be expensive. Keep your longterm, low rate loans (usually mortgages & SLs) for full term - and quickly dispatch your shortterm, high rate loans (usually revolving consumer credit).

(An old Iowa U grad)


But remember that your not accounting for risk when you say to be careful of being debt free, plus you have to minus your investment if it were to transpire to 3.8 million from all the debts you have since you leverage everything or buy a bigger house and never pay off the mortgage, huge car loans and tons of cc debt, so that 3.8 million could only be around 2 million when you account for risk and liabilities.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Thu Jun 30, 2011 2:53 pm
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felix.renegade
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Keep it simple. Take a hard look at these debts and start with the loans with highest interest rate. Concentrate on paying those off first. This will save you a ton of money. Avoid taking on additional loans, if you can help it...Good luck.
Post Thu Jun 30, 2011 5:53 pm
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Gary Barzel
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Although that is what some Financial advisers suggest, if you make it clear before you sign up that you are only interested in meeting once a year or so, they will try to work it out with you.
Post Thu Aug 18, 2011 2:04 pm
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