Do stocks held by me belong in Planners portfolio?
breenthumb
6 years ago
Featured Answer
Sort by:Oldest
Comments (26)
SaltiDawg
6 years agoRelated Discussions
Financial Planner
Comments (12)Hi azmom, Anyone uses a financial planner? You bet... I've surrounded myself with them (but it's my industry anyway... and I have an "immersive" nature as well....) What kind of service/assistance do you recieve from your financial planner? There are many angles to financial planning... and although I know of firms that CAN offer something from every perspective, I have RARELY FOUND* a single individual who can effectively "step back" and look at the entire big picture and actually apply the various critical knowledge details to map out a full, comprehensive plan. (*The ONLY exception being "fee only" professionals who are not compensated on transaction frequency or account sizes... but either hourly fees (no incentive against your best interests... but really no incentive FOR your best interests either,) or an annual percentage of your total Net Worth GROWTH (which means they win when/if you win, and get less, or nothing, if you do not win... little or no compensation for financially 'treading water.') From a very HIGH LEVEL, GENERAL perspective, the areas that need to be coordinated and planned are; A) Assets (this is what much of the industry solely focuses on,) B) Risk Coverage (mostly done with insurance... which, unfortunately, is too rarely "planned" and too frequently "pushed." Everyone who is beyond being single, renting a shared room and earning minimum wage, needs SOME degree of protective coverage... The more you have (income, assets, dependents, etc.,) the more you need further levels of properly fit coverage... however, as with food "more is not necessarily better." Being properly custom FIT with coverage is the critical piece a planner needs to be able to do... and that changes (just like human bodies being fit for clothes) over time. C) Safe Savings (and the avoidance of 'deadening' the family portfolio by putting TOO MUCH in 'safe' savings when it may be neither safe, nor properly earning what the family needs it to earn.) D) LEVERAGE/DEBT Management. Eliminating 'naked debt' is critical... but too often confused with the use of 'tax-preferenced asset leverage.' Debts such as consumer credit generally reduce the family net worth and safety, while properly used tax-preferenced asset leverage (mortgages and business credit) generally increase family net worth and safety. The critical issue is how to know which is which, and how to treat them (which are polar opposites.) E) Tax Planning. Waiting until it's time to do your tax returns before you pay attention to your tax details is analogous to going to a single aerobics class once a year and wondering why you can't catch your breath. Some people are comfortable (or willing to struggle) with the basic forms of tax returns once a year... but MOST people are confused & overwhelmed by the moving-target details of structuring your financial life so that you are "least bitten" by the tax wolves. Just the difference of keeping 10% more of what is yours every year (and having it work in compounding returns) is a HUGE piece in the puzzle of what you are left with at retirement... and having someone who lives, eats, and breathes (and stays sane) in the world of taxes and the IRS code changes is a critical support. How did you find him/her? A) I lurk (and participate) at various financial communities online (like this one... though I don't know any other planners here...) B) I ask those I know (and am impressed by) for introductions to others THEY know in ancillary expertise fields. What are your expectations of the service? Someone who LOVES the corner of the industry they specialize in, and just devours the concepts on an ongoing basis. I seek "no b.s." sincerety and integrity... someone I COULD trust to toss my house-keys to if they were in town while I was away on vacation. Someone who has the same perspective on comprehensive and balanced planning... same ideas about life, and what "retirement" does and does not mean... and the ability to truly LISTEN, and if they do not understand, to ASK.... What is the fee structure? Is it worthwhile to use the service? Above are my perspectives on BEST fee structures. Since I have no single "captain" (but reserve that hat for myself) I have different incremental arrangements with the players on my 'financial support board.' For anyone desiring to NOT wear the "captain's hat" I would recommend SELECTING a 'captain' (or "lead advisor") with the idea that they will NOT be relied on to be the "one size fits all specialist" (which is simply unrealistic) but rather the "quarterback" for the professional team YOU OWN who are all facing the same goalposts that you are, and win when you win. Is it worthwhile? If you choose your professionals carefully, and stay in regular contact so THEY know they are taking you where you want to go... DEFINITELY! Cheers, Dave Donhoff Strategic Equity & Mortgage Planner...See Morehome equity loan or take from portfolio?
Comments (4)Hi Len VT, If you've been holding your stocks for an extended period, you'll likely have a substantial capital gain built up and if you liquidate investments you'll have capital gain tax to pay, which will mean that you'll have to liquidate a larger amount of pre-tax asset value in order to have the after-tax amount needed for your renovation. Not only that, you'll have to pay commission to sell them and, after the house loan is paid off, commission again to re-purchase, supposing that you'd choose to buy the same stocks later. Not only that, I think that the markets are down now, so I'd rather not liquidate some of my stock market-based assets, these days, lacking serious need. In fact, I've been buying more, recently, and expect to buy more, later, as I expect an advance in the markets, though I think that it may be later than jkom51 thinks. I hear some folks telling of set-up costs related to a home equity line of credit, which is understandable, as a lender wants to be sure that the property is as claimed, is properly evaluated, lacks large loans against it now, etc. I have used stock certificates and mutual fund certificates as collateral for a line of credit, and had no set-up fees to pay. If you were to use stocks or mutual funds, you might qualify for a lower interest rate, in that liquidation would be much easier, in case of default. Also, I've allowed my line to sit unused for substantial periods, and there have been no inactivity fees, either. In fact, in that you have much larger assets than you'd need to liquidate to fund your upgrade, you might choose to take out a larger loan and make some increased equity investments currently. I understand that the interest rate on your home improvement loan would be deductible, but not being a resident of your country I'm not sure. If it is not, you'd want to keep the two loans separate, as the line of credit for further equity investment would be deductible in your area, I'm almost positive. While interest rates currently are low, I expect to see them rise, for when one considers the bad odour internationally that has developed in recent months over the U.S. sub-prime mortgage debacle, and the huge U.S. gov't. debt, much of it held abroad, it could well be that, in the light of the deficits developed recently, largely due to the Iraq war, it may be necessary for the U.S. gov't. to offer higher rates to foreign holders in order to entice them to make further loans, before long. Good wishes as you consider your options further - I hope that you are happy with your choices, later. ole joyful...See MoreMet with financial planner yesterday (retirement)
Comments (42)I'll be happy to help you with this. First of all, there are two different reduction calculations: one for the basic insurance and one for the option B insurance. It sounds like your question pertains to the basic insurance. As I stated in an earlier post, it appeared that your husband had calculated the basic insurance premium based on a 50% reduction at age 65. What this means is that starting with the 2nd month following his 65th birthday, the amount of his basic insurance will decrease 1% per month for 50 months until the amount of the insurance is only 50% of what it was when he retired. So, if he started with $150,000 of basic life insurance, it would end up being $75,000 when he is 69. The amount that he pays will change from .925 per thousand to .325 per thousand at age 65 and will continue for as long as he lives. He could also choose the "no reduction" option, in which case the basic insurance would never be reduced and the full $150,000 would be payable upon his death. However, instead of paying .925 per $1000, his premium would start off at more than double that amount. He would be paying $2.155 per $1000. Finally, he also could choose the 75% reduction which of course is the cheapest. He would start off paying only .325 per $1000, but at age 65 the amount of basic life insurance would begin reducing at the rate of 2% per month until only 25% was left. So, if he started with 150,000 worth of basic insurance, he would be left with only 37,500 by age 68. However, he would stop paying premiums at age 65 and the 37,500 worth of insurance would be free for the rest of his life. Similar choices must be made with regard to the optional insurance, but I believe that those choices don't have to be made until he is 65. Let me know if you want me to go into detail about the optional insurance (which represents about $300,000 of his coverage). I hope that this explanation has helped somewhat....See MoreDiscussion and strategies re current stock market drop
Comments (18)patti 47?? (who doesn't look a day over 36), I've been called a "dope", at times. Does that count? Susan on, What kind of stuff does your financial advisor sell? Does s/he recommend financial investments that s/he doesn't sell? As you are reasonably young, do you carry mainly equity-based assets? Mainly mutual funds, stocks, or what? If you carry some mutual funds or stocks, have you considered having some of the certificates issued for ones that you plan to own for a numbr of years, your core assets, to use as collateral if you make a loan to buy a vehicle, etc? If you ask your credit union, bank or other lender, I'll bet that they'll offer a lower interest rate if you use such assets as collateral, in addition to the car. Are you achieving major tax reductions on current investment income? Quite a bit of deferral of tax load? Quite a few RRSPs? Have you read some of my materials referring to some of my reservations about using them, especially for younger investors? If you carry substantial RRSP assets, is a portion of them of the self-directed kind, and, if so, and of substantial size, does your carrier manage them without an annual admin. fee? I enjoyed that for a number of years (got into such a plan under an earlier carrier that was bought out). But when rolling over the RRSP into a RRIF, the later carrier told me there'd be an annual fee. When I returned a while later saying that I'd found some other carriers that would manage the fund with no fee ... they found a means by which they could do that, as well. I didn't feel it necessary to reveal to him that I found the offer made by the others less attractive. As Grandma used to say, "One should tell the truth ... but it isn't necesssary to shoot one's mouth off and tell all that one knows". (A bit of a free-style rendering of Grandma's words, here). (My hope here is that you answer these questions within your own mind/family, not to me [it isn't my business, unless you choose to make it so], or here in public). Good wishes, everyone, for increasing your knowledge of how money works, over the years. ole joyful P.S.: Commentary on RRSPs: http://ths.gardenweb.com/forums/load/saving/msg011934521024.html?4 o j P.P.S.: Investment portfolio 16 years: 5-year growth rates 16.58% - 36.61% (difference slightly over 20%); 10-year growth rates 19.67% - 29.37% (difference slightly under 10%): http://ths.gardenweb.com/forums/load/finance/msg0206395613737.html?1 o j...See Morebreenthumb
6 years agolast modified: 6 years agosushipup1
6 years agobreenthumb
6 years agolast modified: 6 years agobreenthumb
6 years agobry911
6 years agolast modified: 6 years agobry911
6 years agolast modified: 6 years agomaifleur01
6 years agomaifleur01
6 years agoElmer J Fudd
6 years agobry911
6 years agolast modified: 6 years agoElmer J Fudd
6 years agolast modified: 6 years agobry911
6 years agolast modified: 6 years agobry911
6 years agolast modified: 6 years agoElmer J Fudd
6 years agobry911
6 years agolast modified: 6 years agobry911
6 years agobreenthumb
6 years agobry911
6 years agolast modified: 6 years ago
Related Stories
MOST POPULARDecorating 101: How Much Is This Going to Cost Me?
Learn what you might spend on DIY decorating, plus where it’s good to splurge or scrimp
Full StoryORGANIZINGHow Much Stuff Is Enough?
Play the numbers game to streamline your belongings, for a neater home and a less-stressed you
Full StoryMOVINGShould It Come With You When You Move?
Ask these 4 essential questions about every one of your belongings before you move into a new space
Full StoryMOST POPULAR8 Questions to Ask Yourself Before Meeting With Your Designer
Thinking in advance about how you use your space will get your first design consultation off to its best start
Full StoryORGANIZINGDo It for the Kids! A Few Routines Help a Home Run More Smoothly
Not a Naturally Organized person? These tips can help you tackle the onslaught of papers, meals, laundry — and even help you find your keys
Full StoryMOST POPULARHow to Choose the Right Kitchen Sink
Learn about basin configurations, sink shapes, materials and even accessories and specialty sinks
Full StoryDOORSKnow Your House: Interior Door Parts and Styles
Learn all the possibilities for your doors, and you may never default to the standard six-panel again
Full StoryLIFEThe Beautiful Thing About Dad's Chair
My father had his own spot in the house. His father had his own spot. Now I have mine
Full StoryBATHROOM DESIGNSpotted: Refrigerators in the Bathroom
You read that right. Before you protest, here are seven good reasons why people are chilling in the bath
Full StoryECLECTIC HOMESHouzz Tour: Parisian Modern Updates for a Toronto Coach House
Iconic furniture, creative groupings and bold colors turn a short-term Canadian rental into a knockout
Full StorySponsored
More Discussions
sushipup1