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.
This is complicated. If your 20 year old is receiving financial aid, getting married could increase your Expected Family Contribution and reduce available financial aid.
Federal income tax considerations alone may not be sufficient to sway the decision. Ask your accountant to do a "what if" tax scenario to be certain. I am expecting that the difference will not be sufficient to sway such a big decision on its own.
Does the pension plan allow for non-spouse beneficiaries? If not, this could be important. If the spouse with the pension dies and the pension is lost, will the other spouse have sufficient resources to carry on?
Similarly with Social Security (although maybe less so since you may have similar earnings history) the surviving spouse would have choice of the larger of two benefit payments. So if one partner had a much higher benefit, the surviving spouse (but not unmarried partner) would have greater income security if married.
If you choose NOT to get married, make sure you have done thorough estate planning (will, power of attorney, medical directive). This is crucial for unmarried partners. If you die without a will, the state will pass assets to your living relatives - not to unmarried partners. I would advise working with a financial planner and an estate attorney to dig into these questions in more detail.
In order to buy the investments, you must have an account which is titled to some entity or individual with a tax id number. That entity is reposnible for filing a return and paying taxes. How is the account titled? To whom were the 1099 forms issued. Answer that, and you know how taxes are to be paid.
This is really a legal question, not a financial one, and you should probably address the situation with a qualified elder care attorney. I suppose that, yes, he can simply refuse to pay, but there may be legal recourse available to you.
As others have pointed out, this is impossible to answer. Lets say I assume that you will earn 6% on average, a conservative assumption based on historical performance. Then a $2,000,000 portfolio will allow you to withdraw $10,000 per month, without eating into the original investment.
The fly in the ointment is the sequence of returns. Lets say in the first year of retirement, we have a financial crisis like decline of 50% in the stock market. Now you only have $1,000,000. Your return assumption has to now increase to 12% per year in order to support the same $10,000 per month distribution.
Then there is the further question of why do you assume you need $10,000 per month in perpetuity? Cost of living will certainly increase, making that $10,000 shrink year after year. So if you are estimating your need at $10,000, you ignore inflation at your own peril.
I admit to some bias, as a fee only advisor myself, but I would suggest you want an advisor that is not paid to sell you a product. For instance, many advisors will steer you into annuities. And certain annuiities may be a good choice for retirement income, but most are highly laden with fees and expenses. And they are not the best choice for everyone. In the event that an annuity is the best solution for you, there are now "no load" annuity products available in the market with vastly improved terms. The problem is that no one is incentivized to share them with you.
Of course, some fee only advisors will seek primarily to manage your investments. And maybe that is ok too. In doing so, they will take care of managing the distribution on your behalf. But they will not make any money from advice such as "paying down your mortgage" or "buying an immediate income annuity" - and so may be biased against providing that kind of advice.
Ultimately it is hard to completely get rid of bias in the advice field. Regardless of pay incentives, advisors are only human, and each may come with his own biases and preconceptions. But the good news is that my experience with peers suggests that MOST independent fee only CFPs are well motivated, and try to do the best job they can for their clients, even when it comes to offering advice that does not directly benefit them.
My best advice is to interview several independent fee only planners who will create a financial plan for you for a fee. (a free plan is going to be a sales pitch, you want a real plan based on real analysis - which you will need to pay for). Discuss ahead of time how the advisor may be able to work with you in the future. Financial planning is an ongoing process, not a one time shot. Some will work with you by managing your money, others perhaps with some sort of retainer. Understand what services will be provided. Then choose the individual with whom you feel the most comfortable. Once the plan is complete, you will have established sufficient rapport with the planner to make a sound decision on whether you can work with him or her on an ongoing basis. NAPFA is a great source for referrals www.napfa.org.