Any financial planners?

[Pugdog007]

I'm recently single (not by choice) and want to make sure I'm making good financial decisions for myself. I have a 401k through work, and keep a fair amount of money in my savings account. I don't have any other savings or money market or stock accounts. My question is - should I be keeping a lot in my savings or should I start to diversify? My APY on my savings is 4.58%. Is that good or bad? Can someone explain to me what a "high yield" savings account is?

 

[mom2taylorandemily]

I used to work for a Stock Broker, but I am not qualified to give you advice. But the one piece of advice he gave to each of his clients (I am one of his clients now) and I follow is this: keep enough money in your savings acct. that you can get to easily to cover your bills (including spending money) for at least 3 months worth. That way, if you are ever unemployed, you can cover your bills for a minimum of 3 months without having to dip into 401K.

 

[Pugdog007]

I used to work for a Stock Broker, but I am not qualified to give you advice. But the one piece of advice he gave to each of his clients (I am one of his clients now) and I follow is this: keep enough money in your savings acct. that you can get to easily to cover your bills (including spending money) for at least 3 months worth. That way, if you are ever unemployed, you can cover your bills for a minimum of 3 months without having to dip into 401K.

I have enough in my savings for close to 3 years of bills right now. That's why I'm wondering if I should look at moving some of it into something else that will have a higher yield???

 

[mom2taylorandemily]

I have enough in my savings for close to 3 years of bills right now. That's why I'm wondering if I should look at moving some of it into something else that will have a higher yield???

I guess then the question is this: how much of a risk taker are you? Don't ever invest anything you aren't willing to lose if the market were to crash. When I began investing, I was young (right out of college) and felt like I had plenty of time to save and invest, so I invested in some high risk high yield options. But as I have gotten older and had a family my level of risk has definitely decreased. I tend to stick to medium yield stocks, and funds, DHs 401K is spread out over several fund groups (1 being high risk, giving a high yield, but a few in low risk as well). I would look into finding a stock broker who is a CFA and just go in and ask for advice, take your portfolio with you. Most will look at it for you, if it is a possibility that you will be signing on as a client. A good broker will offer sound advice. I would not go to a newby, he is hot for commissions, look for a seasoned broker.

 

[clh2]

Personally, I wouldn't go to anyone but a fee-based planner, i.e. one who charges you hourly, not by someone who is making commission (just a conflict of interest IMHO.)

We've used a great financial planner forabout 15 years, and while his hourly rate makes me go , it is truly the best money we spend.

We get a complete set of meeting notes,and then DH and I take care of moving funds around for the goals that we are working towards.