Financial advice

[@1RBFjr]

Alright, needing a little advise. I’m not sure if a financial advisor or portfolio manager would be my route or what really.

So I’ve had 6 figures in a bank Cd for the past year and half. Been riding the 90 day cds as the are paying more %. I am now thinking since it’s matured to pull it and put it in a brokerage link. Put that 6 figures into an ETF maybe VOO, SPY, QQQ or something like that. I know there will be ups and downs but year over year it really outperforms any type of cd or high yeild saving account. The bank CD is really my savings but I’m ready to take the next step forward and create some wealth for my young 2 daughters. So I’m thinking the rough 10% YOY return from SPY along with my additional inputs to a brokerage account will compound so much faster and hopefully create that wealth. I know the capital gains situation on short and long term but I shouldnt have to pull hardly any out.

does anyone here deal with this kind of stuff or can lead me in the right direction?

There are many people here providing suggestions, but I also would consider some reading. I suggest checking out Dave Ramsey’s book Total Money Makeover. He touches on many of your questions.

Some people don’t like Ramsey (also a UT grad) and that’s fine. Years before I had even heard of him I was already in the mindset of many of the things he advocates.

 

[walkenvol]

Long term care insurance for the young isn’t a bad idea if it’s available at a good price. 40 year olds occasionally need life long care as well as old fellers. But at a younger age the disabled person could get divorced, go bankrupt, and take advantage of government programs. Can’t live with the ex-spouse though I think.

I’ve done a cursory look at long term care rates and it appeared to me that the monthly premium you’d pay at 60 was the same whether you started the policy at 50 versus 59. Unless there’s a policy that reduces the monthly premium as you age based on when the policy began then you’re likely much better off investing that money when younger? Since these premiums can be paid from an HSA, I’d prefer to load up there for the future.

IMO unless your health and family history lead you to believe you will likely have many years in a care facility, I haven’t seen the LTC policy that I thought was a fair value. The industry appears to try to use fear tactics to sell those policies with “can you afford $125K a year” type rhetoric. If you’ve invested decently, then you’re likely have that or more available. JMO

 

[walkenvol]

I’ve wondered about HSAs. If somebody can pay for health care without dipping into the HSA, why not do that and let the health savings account grow and exploit the tax advantages. I guess if the HSA grew very large and exceeds likely out of pocket health care expenses then it makes sense.

That’s what I’ve been doing, but my out of pocket healthcare outside of monthly premiums so far has been nominal.

 

[05_never_again]

There are many people here providing suggestions, but I also would consider some reading. I suggest checking out Dave Ramsey’s book Total Money Makeover. He touches on many of your questions.

Some people don’t like Ramsey (also a UT grad) and that’s fine. Years before I had even heard of him I was already in the mindset of many of the things he advocates.

I wouldn't take DR's advice about investing. Budgeting, yes, investing no.

 

[Thunder Good-Oil]

Any recommendations

Sorry, I’ve never shopped for LT disability coverage. But when it was available through an employer I took advantage of it.

I’d use an independent agent if looking rather than simply using a broker representing a specific insurance company. I would think that there are wide variations of what’s out there. How to get on Medicaid? Healthcare only coverage? Assisted living? Nursing home coverage? Etc?

 

[Thunder Good-Oil]

I’ve done a cursory look at long term care rates and it appeared to me that the monthly premium you’d pay at 60 was the same whether you started the policy at 50 versus 59. Unless there’s a policy that reduces the monthly premium as you age based on when the policy began then you’re likely much better off investing that money when younger? Since these premiums can be paid from an HSA, I’d prefer to load up there for the future.

IMO unless your health and family history lead you to believe you will likely have many years in a care facility, I haven’t seen the LTC policy that I thought was a fair value. The industry appears to try to use fear tactics to sell those policies with “can you afford $125K a year” type rhetoric. If you’ve invested decently, then you’re likely have that or more available. JMO

Health issues are probably what wrecks people’s wealth more than anything else. But everybody’s situation is unique.

A good CFP ought to know what’s best. One working independently and as a fiduciary that’s not selling insurance products on the side.

 

[@1RBFjr]

I wouldn't take DR's advice about investing. Budgeting, yes, investing no.

I understand. We don’t follow all of his investment advice either.

 

[allvol90]

Sorry, I’ve never shopped for LT disability coverage. But when it was available through an employer I took advantage of it.

I’d use an independent agent if looking rather than simply using a broker representing a specific insurance company. I would think that there are wide variations of what’s out there. How to get on Medicaid? Healthcare only coverage? Assisted living? Nursing home coverage? Etc?

Oh long term disability. I thought you was talking about some type of long term health care insurance plan. Yes I have long and short term through work

 

[allvol90]

I understand. We don’t follow all of his investment advice either.

I actually think I have that book that I got for Christmas one year. I think I’m gonna pull the trigger and move the money into my fidelity account and let it draw from SPAXX and invest into VTI on red days Like Today. It’s really hard not to look at the overall charts. Yes there are Years better than other and years where it’s flat or red but overall I don’t think it’s going to hurt unless everything just crashes and never returns. I had just graduated in high school in 08 and remember those bad economy years but they rebounded. Same in 15 I think it was and it rebounded. Covid same thing. i just need to figure out a good portfolio and not just VTI.

 

[Ernest T. Vol]

I actually think I have that book that I got for Christmas one year. I think I’m gonna pull the trigger and move the money into my fidelity account and let it draw from SPAXX and invest into VTI on red days Like Today. It’s really hard not to look at the overall charts. Yes there are Years better than other and years where it’s flat or red but overall I don’t think it’s going to hurt unless everything just crashes and never returns. I had just graduated in high school in 08 and remember those bad economy years but they rebounded. Same in 15 I think it was and it rebounded. Covid same thing. i just need to figure out a good portfolio and not just VTI.

For me, there's only one way to invest but several ways to trade. For investing long-term: vti, vxus and bnd(if in a nontaxable account) vteb if taxable. Find your allocation for comfort and keep your core no matter what comes. Buy a few stocks (not a material amount compared to your core) to trade outside to keep an edge or skin in the game.

 

[Thunder Good-Oil]

Oh long term disability. I thought you was talking about some type of long term health care insurance plan. Yes I have long and short term through work

I’m kind of lumping it all together. I guess there’s nursing home care which isn’t covered by Medicare. Then there’s long term and catastrophic health care situations. And there’s also (I guess) loss of income if somebody is unable to work.

Everybody’s situation and needs are unique. Without the right type of coverage the necessary care can, and often does, take everything that you’ve accumulated over decades of hard work.

 

[SpecialKVolfan]

You’re good.
lol.

 

[walkenvol]

I’m kind of lumping it all together. I guess there’s nursing home care which isn’t covered by Medicare. Then there’s long term and catastrophic health care situations. And there’s also (I guess) loss of income if somebody is unable to work.

Everybody’s situation and needs are unique. Without the right type of coverage the necessary care can, and often does, take everything that you’ve accumulated over decades of hard work.

If you’ve purchased strong Medicare advantage or supplemental insurance and have a healthy SS payment plus pensions and/or other sources of income from retirement savings, (I’m talking about pushing you above IIRMA limits level) then I think it’s going to be very rare to get wiped out due to long term care IMO. If someone knows differently, please educate me so I don’t make a mistake. TIA

 

[allvol90]

For me, there's only one way to invest but several ways to trade. For investing long-term: vti, vxus and bnd(if in a nontaxable account) vteb if taxable. Find your allocation for comfort and keep your core no matter what comes. Buy a few stocks (not a material amount compared to your core) to trade outside to keep an edge or skin in the game.

Why VTEB? I looked and understand it’s a bond but the past 5 years is down 8.7%. Is it just another way to secure funds? Yea im not into trading. Went that route and got smoked.