Sorry about that, Simon! We'll get that fixed asap. Please check back there later today.
Judy, this sounds like a good plan, you can then look at your own benefit at your age 70 and see if it is higher, could take that then,
NRodrequez, it sounds like you do not have the knowledge to do it yourself, so I would hire an advisor.
Judy, it is also a good idea to delay collecting your benefits for as long as your can and you benefits will also enjoy an automatic 8% increase every year that you delay collecting your benefits past your full retirement age up to the age of 70
N Rodrequez, if we aren't talking about a lot of money, a target date fund might be a good and simple alternative. While many providers offer them, I would look at Vanguard first. That said, 40 is a great age to start a relationship with a financial planner. If you make any needed course changes now, your probability of success is MUCH great than if you wait until retirement to have that kind of engagement.
You are very welcome Bob. I'm glad you took advantage of this wonderful opportunity provided by Kiplinger and NAPFA. Tell your friends.
hi Joe, I would agree that you should increase your bond holding to closer to 40%. And it is a good idea to invest in low cost index funds from companies like Vanguard rather than investing in more expensive actively managed funds
Michelle, I would have your sister contact NFCC, the National Foundation for Credit Counseling. They are set up to help people with debt issues.
Michelle: You certainly are kind to want to help her. An option could be to cover the expenses she can't, that's all. You may want to limit how long you take this on, saying I will do this for xx months. Perhaps assisting her in preparing her skills for another job, a higher paying one would assist her in the future. That's what will help her grow out of this situation.
hi Lee, I would be careful about investing some of your bond allocation money into preferred stocks even if they are paying a nice amount of dividends. At the end of the day, preferred stocks are riskier investments than bonds and a truly diversified and risk adjusted portfolio should maintain a healthy allocation to stocks and bonds
Michelle, the phone number for NFCC is 1-800-388-2227
Lee, preferred stocks can be a good investment or you could use a preferred stock mutual fund. The risk of a single preferred stock is that the company could go bankrupt and you would lose both the interest and the principle. It could be a component of a well diversified portfolio.
Good Afternoon! My name is Phil Hogg. I am a CERTIFIED FINANCIAL PLANNER (TM) Professional with Hogg-Murnighan Financial Planning located in Chicago, IL and the world wide web at www.hmfinancialplanning.com I hope to answer a few of your questions today regarding personal finance and saving for retirement.
Howdy Phil! Happy to have you on board!
Hi, this is Pat Jennerjohn, CFP, with Focused Finances in Oakland California.
Pat and Phil, could you kick off by taking this question from John Idoux: I am over 70 and 1/2 and I still work full-time.I have two 403(b) accounts and a 457 account to which I contribute when employed full-time at my previous employer. Thus, I no longer contribute to those accounts, but since I am stll employed full-time, can I wait to begin RMDs on those accounts until I am no longer working full-time. Thanks.
Hi Dee. I think you have an attractive interest rate on the 15yr. Depending on the allocation of your portfolio(s), I would be inclined to maintain the mortgage and not pay it off in 5yrs. I ask about your asset allocation because if your return is greater than 3.5% (mortgage rate), then having your contributions invested in a portfolio earning greater than 3.5% is advantageous compared to your int. rate.
Hi, this is Therese Govern, financial planner and NAPFA member from Seattle, WA. Happy to be on the call today.
Hi Therese. Welcome aboard!
Just a reminder to our participants: We are answering questions in the order in which they are received. We have a number of great questions ready to go, and we will be getting to them as quickly as we can. A transcript will be available after the chat.
Dee. Feel free to visit Vanguard's website for calculators and financial planning considerations. They also have worksheets and other helpful information. Good luck, I think you are doing a great job starting the process when you are 37.