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.
To me, the difference is largely one of time frame.
Lets offer an example. We have 2 ten year olds with $100.
Amy uses the $100 to buy lemons, sugar, an old table, and some poster board and sets up a lemonade stand on a busy road. Business is brisk, and she reinvests her profits by buying more supplies. By the end of the summer she has turned $100 into $500. Some days (rainy, cool days) business was slow, some days (the hot sunny ones) it was brisk. She was never discouraged. She did not throw up her hands on the first rainy day and say "no one is ever going to buy lemonade again - I'm going to sell my stand". She is an investor.
Johnny on the other hand goes and spends his entire $100 buying lemons, which he hopes to sell to Amy next week at a higher price. He heard the price of lemons will go up because the forecast is calling for record heat and lemonade is popular in the hot weather. Lo and behold, the forecast is wrong, the price of lemons drops, and Johnny is wiped out. Johnny is a speculator.
Speculators are forever trying to be smarter than the market. Investors simply participate in the markets. Speculating is akin to gambling. Investing is like going to work.
So if I understand you correctly, your husbands retirement plan is to simply live it up and then die before he runs out of money? Wow. Surely there is a better way! Any withdrawal will be taxed, the rate depends on your income. If your taxable income is over about $75,000 (including the distribution), then it will probably be taxed at 25%. If you are younger than 59.5, then you will also be assessed a penalty of 10%. So taking the money out is expensive. More importantly, what happens if you DON'T die before you stop working. What if you get sick and can't work. I guarantee you when you are 75 years old, you will not regret saving more for retirement. You might very well regret that you cashed in that retirement plan and blew it on a vacation you couldn't afford.
Be careful with Gold as an investment. It is subject to long periods of underperformance, with typically short term jumps during periods of economic uncertainty, inflation (if anyone can remember that) or weak dollar performance (another distant memory). Gold has been far more volatile historically than stocks or bonds, without the long term returns that have been provided by stocks! Remember, gold is one of the few "investments" you can buy which generates no income or profit and really has no inherent value. Furthermore, be wary of "Gold companies" that want to sell you IRA's etc. Look at fees they will charge, and the price they will actually sell gold at. For instance, if the spot price of gold is $1,350, my guess is that you will buy for more, and sell for much less. You may also pay hefty fees on the account itself. This is all unnecessary, because you can buy a gold ETF like GLD (not an investment recommendation!!!) which owns physical gold in a vault, you can buy it in a regular discount brokerage along with your stock and bond portfolio, and you can buy and sell, instantaneously, with no cost other than your discount brokerage trading fee. These companies are selling you something you can do for yourself at a much lower cost.
What I sense here are conflicting priorities. Your husband wants more space to live in, but I sense that you want to make sure you are secure financially, especially given that you are coming out of some difficult times.
Buying too much home can be a big mistake, if you are not ready. Bigger mortgage payments, tax bills, and maintenance costs leave you vulnerable if your income should go down in the future. The burden of high fixed expenses can also make it harder to achieve other important goals. Just "being able to afford it" - for instance, qualifying for a mortgage, does not mean that it is a good idea. The mortgage company only cares that you can pay your mortgage. They don't care if you have enough to save for retirement, pay for college, go on vacation, etc.
I would not recommend stretching on your home until your other financial ducks are in a row. Do you have a plan to pay for college? Have you discussed it? There is still time to save money for that goal - but maybe not if you buy the bigger home. Is your retirement savings where it should be? If not, are you contributing enough to catch up? Do you even know where you "should be" at this point in life?
One other point - don't think of the home as an investment. It is a place to live, that will cost money to upkeep and maintain. It is better than renting, for sure, but less house is more when it comes to building wealth for the long term. My most financially secure clients currently in retirement are mostly there because they kept housing costs low throughout their lives, forgoing the big house and big mortgage payments.
Be careful. If you can afford it without sacrificing these other goals, and are willing to take on the burden of higher expenses, then go ahead. But retirement and college planning should come first, in my opinion.
Save your money, unless you plan on working in the field. That being said, coursework in business finance may help you better grasp the larger picture of how stock markets relate to the economy and business world at large. As for books, I strongly suggest you include "A Random Walk Down Wall Street" by Burton Malkeil and "Value Investing" by Benjamin Graham. These are two classic must reads with different perspectives. Graham’s book is a bit dated, but still a worthwhile read, as he was Warren Buffet’s mentor. I am more of a Malkeil guy myself.