Financial Planning for Young Professionals

Not long ago, a young couple set up a meeting with me to discuss some of their finances. I called to learn more about what problem they were trying to solve, and learned that they wanted to make sure that their investment portfolio was appropriately diversified. As we were setting up time for the meeting, I asked how they were doing with debt, credit cards and if they had extra spending money at the end of the month. There was a pause. Then she said “You work with clients on that sort of thing?”

“Of course I do. In fact, it’s what I spend a lot of my initial client time working through.”

In our first meeting we spent ten minutes reviewing their stock allocation, and then the next 70 minutes working on an approach to better manage their monthly spending and consolidating their credit cards.

I have a fundamental belief that everyone needs a financial advisor. Millennials have a huge advantage over their elders when it comes to investing, but they have to take advantage of it now:

1. Time is on your side - Money grows over time and it makes a profound difference over a long period of time. As an example, if you invest $2k from 19 years old to 26 (8 years) when you retire, you will have $1MM. If you wait until you are 27 to start saving, you would have to put away $2k each year until you are 65 (39 years), and still only have $900k. So start early!

2. Setting up good habits - It is always easier to start with a strong and thoughtful foundation, rather than reseting in the future, due to bad behavior. Lets set up good habits now so that you will benefit in the long term.

Whether it is helping to budget/monthly spending, set goals, mediate differences between partners, set up investments, talk taxes or buying a car, a financial planner can be a steady hand to help.

If you are a young professional, you may think a financial advisor doesn’t make sense for you because you likely

• Don’t have much of an investment nest egg

• Don’t own a house, and are very likely renting

• Live paycheck to paycheck

• Have debt due to student loans and/or credit cards

• Don’t have kids and thus have fewer variables in your life equation

• Have long time before retirement

• You use an online tools/service for budgeting or saving

If some subset of that list resonates with you, here are some things to be thinking about:

• Am I successfully balancing my short/mid/long term goals?

• Am I saving enough?

• Am I spending too much?

• Do I love what I do at my job?

• Do I have disability, term life and health insurance?

• Am I accessing all of the amazing array of benefits my company offers (ESPP, anyone?)

• Does my partner see eye to eye with me on spending and saving?

• Is there harmony between my spending and my values and goals?

• Should I be consolidating your debt?

Too often it seems that young professionals make their decisions in isolation, without seeking advice from someone with more experience. Perhaps there is information around the internet that could be gleaned from a quick google search. A financial advisor, who gets to know your background and experiences, can provide much of the needed support to help get your financial house in order for the long run. Helping you set up much of the foundation, so that you can answer the questions above, with certainty and confidence.

You don’t need a small fortune to start this process and to get competent help, Chamberlain Financial Advisors is here to help! I spend the time getting to know you. I understand your context, so that the advice I give you, meets your specific needs. Lets create a plan that will help you build to that fortune, so that your future self is delighted to meet you. And don’t worry, I get that you are busy, I work to make your life easy. We can meet for lunch, after work for a drink, or I can come by your house for consultations.

Big Bonus? Don't Ignore the Rainbow

I have been asked for suggestions on what to do with a nice fat bonus check (or a big pay day from a sales/legal win). It always depends on your particular situation. However, there are some high level things I would suggest thinking about. First, have a plan!! I would go into it with split among your goals, Eg: 20% - short term, 60% - mid/long term, 20% - fun.

Short term issues that alleviate worry:

1. Pay down any high interest debt - credit card, 2nd mortgage, school loans

2. Put new tires on your car

Short/mid term value that you can add to your family

1. Time to upgrade your 10 year old minivan?

2. Remodel the kids bathroom?

Mid/long term investment for your future self

1. Fund an IRA

2. Fund an investment account

3. Buy into a real estate deal

4. Fund your safety cash (3 months of family bills)

5. Fund the kids 529’s

Do something for your self! It’s a bonus, enjoy it.

1. Buy yourself something fancy

2. Buy a gift for your sweet heart

3. Go for a ridiculously expensive dinner/outing

4. Check off an item on your bucket list

5. Hop on a plane for a far away spot for a week

6. Put a down payment on a Tesla

The key points here are:

1. Take care of some short term issues, that keep you up at night.

2. Think about your future self … they will be knocking on your door soon

3. HAVE SOME FUN

Warning: Don’t let your “bonus” fund your life.

If you are counting on your bonus to pay your bills, or keep you afloat for the year … please, pretty please with a cherry on top, you need to reevaluate how you are allocating your monthly income. Use this next bonus check, to catch you up. And lets go ahead and set up a plan, moving forward, so that you are focusing your spending on the things that matter to you. And not throwing money at things that don’t. Schedule a quick call or coffee!!

The Financial Mistake You Don't Realize You Are Making?

I was talking with a family friend, who’s retired, about how she was managing her affairs. She felt confident that all was well. She and her husband had recently updated their will. I nodded with approval, as its always a wise move to have your will reevaluated every so often. I’m curious (nosy) and try to be helpful, so I asked her more questions. After I asked about her stock/bond/cash allocations, we moved on to insurance. I asked about long term care, in case circumstances changed and they needed assisted living. She got real quiet and then all of a sudden blew up in frustration …

“I didn’t think to ask about that but WHY DIDN’T THE LAWYER??!! I’m calling him tomorrow!”

It’s a common revelation to people I meet with: On your own, you’ve engaged with several specialists but don’t have a financial advisor with a holistic view of your entire financial health to make sure everything is covered. Similar to a primary care physician who sees you on a regular basis and advises when to see a trusted specialist. Or a systems architect in software, who understands how the myriad components of a system interact.

You may have someone for stocks and bonds, a medicare guru, an estate lawyer, a real estate lawyer and an insurance agent … but do you have anybody that has the overall holistic view of your plan, tying everything together? Someone who’s family’s future, is directly tied to your family’s future success?

At Chamberlain Financial Advisors, we assess all aspects of your situation, providing solid advice throughout. We are fee-only, meaning we don’t get commissions to sell you products. Where we need experts, I facilitate the conversation. The ultimate goal is your overall financial health.

Do you have an advocate with a holistic view of your family’s financial situation? Are you DIY’ing it, but don’t really understand all aspects of the plan? Set up some time with Josh. Let’s get fully healthy.

Why Would You Pay More For Xfit Each Month Than a Financial Advisor?

A recurring theme keeps coming up in conversations with potential clients... the idea that they "don't have enough dough" to "deserve" a financial advisor because they don't have significant investable assets lying around. 

This notion, incidentally, is perpetuated by many advisors that won't talk to anyone with assets under $500,000!  Because apparently their time/overhead is worth more than $5,000/client/year?

I became a financial advisor because of my love of investing and finance and my passion for helping others reach a place where cash is not the primary variable in determining a family’s long term decisions. It is important to me that my services are affordable and accessible so that I can build trustworthy and lasting relationships with as many people who could benefit from my help. To do all these things I have put together a win-win solution for those who don't have a boatload of assets -- yet.

Introducing Chamberlain Financial Advisors' Monthly Subscription

I want to work with people in their 30's and 40's that have great potential, realize they want to meet long term goals, and need someone they trust to help shepherd them through. I am offering a monthly subscription option, that is less than your monthly Crossfit or Yoga membership -- and it's equally as important for your (financial) health!

We will develop a regular cadence for meetings, virtual or in person, around your schedule.  We will work on budgeting, investing, insurance (I’ve got a guy you can work with), saving for a house/boat/college expenses, annual company elections and anything else you may have on your mind.  And as we work together, we will build a lasting relationship of trust.

Financial Planning & Investment Retainer

$125/month + $997 Upfront Fee

For those saving for retirement and who want to stay ahead of the game. Chamberlain Financial Advisors will create and manage your plan, guide your through the implementation process, monitor your investments and advise you as life changes.

• Full implementation

• Ongoing guidance

• Investment advice

• No asset requirement

• Virtual planning available

Can you afford to put off this decision any longer?  Do right by you and your family and start investing in your future. Schedule a call to discuss how, for less than your monthly cable bill, we can start building your wealth and reach financial freedom.

(**And Jenn and I love our fitness routines!! We love y’all @crossfitdecatur and @purebarredecatur.)

Why You Need to Friend Your Future Self

Think about you!

Yes, you. Where do you live? Who do you live with? Where do you work? How do you spend your free time? Now picture yourself in 10 years. Where do you live?  Same place? Who do you live with? Are you working?... Do you have the same occupation? How do you spend your free time? 

In 2008, UCLA psychologist Hal Hershfield, Ph.D., conducted a study asking similar types of questions and found people commonly had two different neural patterns when thinking about the present versus the future:  The first neural pattern:  "I'm thinking about me".  The second neural pattern:  "I'm thinking about a stranger".

How you identify with your future self is called "self-continuity".  Because many of us are not well connected to our future selves, we make decisions that maximize our current selves, and leave our future selves in bad shape. Check out this short article from Men's Health for more.

An example of this sort of behavior: On Friday watched the Atlanta United game with friends.  As the game wound down, I ordered a parting drink.  I certainly did not need it, and I had already scheduled an xfit workout the following morning.  I failed to contemplate how my future self (only 8 hours into the future) was going to deal with waking up early and feeling crappy for my work out.

Get to know your future self and accomplishing your goals can be simpler than it seems.

Saving now, for either a short term goal such as a vacation, or a long term goal like retirement can seem vexing.  And it will require a short term sacrifice.  But your future self will appreciate it. 

Here are a few things to get in touch with your future self:

1.  Write a letter to your future self

2.  Take a picture of yourself and run it through agingbooth or faceapp

3.  Tap a surrogate, like your mom/dad, or someone with a similar job

4.  Schedule a time with me and let me help get you connected

YOUR FUTURE SELF IS LOOKING FORWARD TO MEETING YOU!!

Lets schedule a quick 20 minute call to work on getting you to acquainted.