Retirement savings without 401K option

[abmitch01]

I would go with a Roth IRA through Vanguard. They are vey helpful in picking funds that meet your needs. And definitely do the spousal IRA.

 

[clh2]

You've gotten a few people saying that a ROTH is the way to go.

I still say you need to discuss the pro's and con's of either a Regular IRA or a Roth IRA need to be discussed with a financial planner. I am not anti-Roth - I do even have one. Just if you are dropping down in income 40%, do you have the cash to pay for income taxes on the money being contributed to a Roth? Or are you better off, at least for the short term, to invest in a regular (i.e. pre-tax) IRA until you are on stable ground from adjusting to the new income?

A financial planner should be able to help out on this decision!

 

[ilovemk76]

Roth IRA at Vanguard

Not a financial adviser but a certified financial planner.

 

[alymae1010]

I agree with all of the Roth IRAs at Vanguard votes. It doesn't seem like you NEED a tax break right now since it sounds like you are still in a good financial position despite the income loss. The tax break in the future on all of your earnings is going to be far more valuable.

 

[abmitch01]

the Vanguard head honcho has written several books that really helped me. I can't remember the names but they'd come up in a google search, they are by John Bogle. there are also good books by the "Bogleheads", people with tried and tee advice about investing with Vanguard or similar index funds. Cheaper than a financial planner! Also, if you happen to have more than 100k to invest, Vanguard gives you a free session with a planner.

 

[Monykalyn]

i guess I am confused about financial planners charging? ours gets a commission, but we don't pay him, and he has a wide range of investment products. He also helped us set up good life insurance and will be advising on how to change it as we and kids get older and needs change. Have been doing this for 4+ years now (since hub lost his job and went independent-) He helps with mine as well (I have a matching employer contribution plan at my work) and we meet quarterly. We also have a CPA do our taxes as we are considered "independent" business owners. A good planner will work through every aspect of financial life including goals and time frames for those goals. Unlike many of our friends who are just now thinking of retirement plans we have been saving and meeting with advisors since first married (21 years next month)
Good luck with however it works for you OP!

 

[supersnoop]

i guess I am confused about financial planners charging? ours gets a commission, but we don't pay him, and he has a wide range of investment products. He also helped us set up good life insurance and will be advising on how to change it as we and kids get older and needs change. Have been doing this for 4+ years now (since hub lost his job and went independent-) He helps with mine as well (I have a matching employer contribution plan at my work) and we meet quarterly. We also have a CPA do our taxes as we are considered "independent" business owners. A good planner will work through every aspect of financial life including goals and time frames for those goals. Unlike many of our friends who are just now thinking of retirement plans we have been saving and meeting with advisors since first married (21 years next month) Good luck with however it works for you OP!

I prefer a flat fee because I don't want a financial advisor who is incentivized to constantly sell me something.

 

[clh2]

I prefer a flat fee because I don't want a financial advisor who is incentivized to constantly sell me something.

I agree 100%.

I want recommendations from my fee-only planner that are good for our financial well-being. I do not want recommendations that put money in a "FREE" financial planner's pocket.

 

[bdcp]

I prefer a flat fee because I don't want a financial advisor who is incentivized to constantly sell me something.

You need one who does not work for a company that sells their own investments. Ours works for a FP company, and they do not have their own products, but they do have access to investments the average person has never heard of.

We've had the same FP for 10 years and yes he gets a commission, but we make a lot more in our accounts than we ever could on our own. He knows of products that aren't available to individuals/public. It drives me crazy when people complain about paying a commission. Ours comes right out of the accounts once per year. We have made a ton of money using our FP. We meet once per quarter and go over our accounts. He makes recommendations about moving investments around, including within accounts we already have. He makes nothing for doing that. The more we make, the more he makes, so that's his incentive. I would never use a FP that has a flat fee because what exactly is his incentive to really help you? Not to mention there are FP's who work for flat fees and sell their own products too.