Have a question that’s keeping you up at night? Well on today’s show I’ll be answering 5 listener questions ranging from saving for a down payment on a home to firing your current financial advisor. This is the first episode that I feature questions submitted by you, the listeners. To be honest, I am blown away that I have received over 30 questions in the past few weeks. Many amazing questions that I think will really help build a foundation of financial knowledge that will help you take control over your finances and set you down the right financial path. Ask your most important financial question right now and be featured on the show!
Should I pay off my home loan early?
There are a few factors to consider when approaching home mortgage. Do you have other types of debt, like student loans, with higher interest rates? It will also depend on the type of mortgage you have, fixed or an adjustable rate mortgage. I also like to factor in your feelings toward debt, because overall satisfaction in life is very important when considering financial decisions.
What are your recommendations on investing for retirement, putting away funds for kids college or general savings for your life goals when you have credit card debt?
Credit card debt is pretty much the worse form of debt that you can have (other than some horrid pay day loan). The interest rates are insane, 18% to 22% or more and there are not many investments out there that can keep up with that kind of return. Paying off the credit card debt is a must and it should be done as fast as possible.
What do I do with my 403b from my previous employer?
There are 4 options that you have when deciding to leave your current employer and join another practice, however, 1 option really stands out as the best choice. Rolling your 403b over into a traditional IRA at a large custodian (TD Ameritrade, Fidelity etc) will provide you with access to better investments and lower costs.
I’m saving for a home down payment, is it better to invest that money while saving or store it away in a savings account?
It would really depend on the timing of when you will be purchasing a home and your ability and desire to take risk. If you are looking at buying a home within 12 to 18 months, I wouldn’t be overly concerned with trying to invest the money, especially with a high allocation to stocks.
If you are looking to buy a home many years from now, let’s say in 3-5 years, I would be more likely to recommend that you look at investing a portion or all of that money into a taxable account.
How do you fire your advisor? What is the process of doing that and who will manage my investments and insurance policies after?
Firing an advisor is pretty easy actually, especially if they don’t manage money or are the agent of record for their insurance policies. Each advisor is different so you will need to look through the client agreement that you signed when you first signed on with the advisor to see how long they will require notice.
- The difference between fee only and fee-based financial planning
- How insurance agents get paid and the hidden fees you need to be aware of
- The four options you have with your 403b when you change jobs