Financial Pathway Advisors, LLC
James Kinney is the founder and owner of Financial Pathway Advisors of Bridgewater New Jersey. Financial Pathways also has offices in Flanders and Cranbury New Jersey.
Jim is a Certified Financial Planner and a NAPFA registered fee only financial advisor. Fee only advisors are committed to maintaining a compensation model that eliminates the potential conflicts of interest which may result when parties other than the client are paying for advice. Fee only advisors are not permitted to accept commissions, referral payments, or any other form of compensation from investment firms, insurance companies, or other professionals.
Jim is a strong believer in the power of financial planning, when done with the clients’ best interests in mind, to improve lives, reduce stress, and achieve goals. Both Jim and Luba have analytical backgrounds (both have spent time working in IT, as well as business and finance), which are demonstrated in the care and attention they pay to even the smallest detail in their clients’ financial plans.
In addition to retirement planning and investing, Jim has specialized training in planning for college, while his partner, Luba, is a Certified Divorce Financial Planning Specialist.
Jim believes that investment risk management should be at the core of every financial plan. Again, his analytical approach is on display as the firm carefully creates, for each client, portfolios that are optimally diversified to balance investment risk vs. the need for positive returns. There are no cookie cutter investment solutions at Financial Pathways. Each client’s investment recommendations are unique and based on his or her carefully considered financial plan.
Jim lives in Hillsborough New Jersey with his wife Laura. They have four adult and college age children. Jim earned his bachelors degree in Business Administration from Drexel University in 1984, his MBA from Fairleigh Dickinson University in 1990. Prior to beginning his current career, Jim had been a successful entrepreneur, founding and growing a successful international manufacturing and data management company from 1990 to 2003. He started his financial planning career in 2004, founded Financial Pathways in 2007, and earned his CFP® certification in 2008. Luba Globerman joined his practice in 2009. Jim is a member of the Financial Planning Association (FPA) as well as the National Association of Personal Financial Advisors (NAPFA). He has been an active adult leader in the Boy Scouts of America for 18 years, and enjoys camping, hiking, fishing, running and the outdoors.
BS, Business Administration, Drexel University
MBA, Fairleigh Dickenson University
Financial Pathway Advisors is a Registered Investment Advisor in the State of New Jersey. Advisory services are offered only to residents of the State of New Jersey, except as permitted by applicable state and federal securities regulations.
I don't ever like to hear the words "I am about to put my entire life savings into.." pretty much anything. Be very careful about the fine print, including "caps" to earnings "participation rates" withdrawal rules, and the like. If you cannot explain to me exactly how the money grows, what your investment will be worth if the market goes up 10% or down 10%, what the surrender period is and what are the exceptions, and what all the rules are regarding how you take your money out in retirement - then don't go here. The investment is "guaranteed" by the issuing company. Some fixed annuities are issued not by traditional insurance companies but by investment firms, which typically pay higher rates, but are less secure than the traditional insurance company issuers. My advice is to diversify your holdings. Never put all of your savings in one product - especially something illiquid (meaning you can't get out your money without a penalty).
First of all, I do not like the term "Blue Chip" stock. The implication is that somehow that stock is safer, or a better investment, than other stocks. At one time, maybe this was true, but in today's rapidly changing economy, no single company can offer the kind of "widows and orphans" safety that people used to associate with stocks like IBM (a shadow of its former self), General Motors (declared bankruptcy), and the like. With that out of the way, I would recommend that investors who want to invest in large US companies may want to purchase an S&P 500 index fund. By owning 500 of the largest companies in the US, you reduce the risk that you choose a stinker, while capturing all of the returns of the market. Keep in mind that you should not invest in stocks at all unless a) you can tolerate fluctuations in your investment value and b) you don't need the money for the next 5 years at least.
Figure out what is an appropriate benchmark to compare your performance to. For instance, let's say you started investing 12 months ago, and selected a portfolio of stocks. A reasonable benchmark might be the S&P 500 index. If the S&P 500 is up more than your portfolio - then your stock selection skills might not be the best. But don't sweat that - most professionals can't beat the index either. (that's why most investors are better off just buying the index - you will beat most pros at their own game). If you are invested in a more diversified portfolio, it is harder to measure success. If your goal is a moderate allocation, you could choose a well known moderate allocation strategy fund like the Vanguard Lifestrategy Moderate Growth Fund. Again, if you can't beat the benchmark - you can always buy it!
$3600 per year from a 200,000 investment is a yield of 1.8%. If you are willing to tolerate some fluctuation in principle, a balanced portfolio of stocks and bonds could spin off that much in interest and dividends. I would advise you seek out a fee only financial planner (prefer someone who isn't going to profit from selling you products) to help you plan for the future. You not only have today's expenses to worry about, but tomorrow's as well, and inflation will keep those expenses rising. A financial planner can help you create a solution not just for today, but tomorrow as well. You need to be careful of tax consequences as well. Distributions from a 403b are subject to tax penalties prior to age 59.5, but in your case, there are several exceptions which may apply.
Yes, even if you don't expect to owe tax, you still need to file a return. Social Security and pension are taxable income, and need to be reported.