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.
Yes. You will pay more tax on your Social Security benefits when you earn more money, since more of your benefit will be subject to tax. And ironically, you will continue paying self employment taxes into the Social Security system, even though you will no longer be accruing additional benefits. (it is possible your benefit could be increased based on additional income history - but this is likely to be insignificant if you already have a litetime of earnings history).
First, your age has little to do with the number of funds. I don't think this many funds are necessary to implement a suitable investment strategy, but since you are paying someone to manage the complexity, it is not a problem as long as the asset allocation that results is where you should be. In other words - I wouldn't do it that way because I like to keep things simpler - but the number of funds alone shouldn't be detrimental to returns. Now lets look at the other part of your question.
"Returns haven't been good enough" - this assumption is based on what standard? That US stocks have had stronger returns? That your neighbors are bragging about how much they make in the stock market? What return do you think is reasonable, and on what do you base your thinking?
I see many investors complain about their own returns when stocks are performing well and they are not keeping up. But the truth is, the only way to get those returns in stocks is to take on a level of risk which they did not want to take. When you agreed on a strategy with your advisor, my guess is that you did not tell him you wanted to be very aggressive (i.e. invest it all in stocks).
Consider that returns over the past year showed US stocks up strongly, foreign stocks were down modestly, and bonds were also down modestly. Now, you COULD have earned much higher returns over the past year by being all in stocks. But would that have been wise given your age and financial plan? Only if you knew ahead of time that stocks would do well - and neither you or your advisor could ever know that. So you are likely in a diversified strategy with stocks, bonds, US, foreign, perhaps some cash, etc. But to be diversified means you will always have some of your money in the sector that is performing well, and some of your money in sectors that are behaving poorly. In such a strategy, the returns you mention probably weren't so bad. Instead of comparing your return to what you hear your neighbor bragging about (or the stock market return) try comparing to a prudent alternative, such as a Target Date 2020 fund or an allocation fund that matches the stock bond allocation in your portfolio. For instance, over the past 12 months, the Vanguard Lifestrategy Conservative Growth allocation fund with 40% stocks and 60% fixed income is up 2.88%. You did well in comparison to that conservatively managed portfolio.
I would encourage you to bring your concerns to the attention of your advisor and find out the logic behind the fund selections, etc. If you do not like or trust the answers, then I suspect you have a relationship problem. But if you are going to shop for a new advisor, do it because either the relationship isn't working, or he/she is not communicating well with you, or you are not receiving the level of service you think you should for the fees you pay. .
There is no limit as far as tax rules, you can leave it in the 401k indefinitely, as long as you take out the annual Required Minimum Distribution. But some 401k plans have their own rules requiring employees who have separated from service to remove their money. Such rules are specific to the plan. If your plan has such a rule, you can rollover the 401k to an IRA to avoid a taxable distribution.
Fees are not really insignificant - they can add up. What is important to measure is what will you get for the fees you pay in terms of service, and also to consider investment philosophy.
As an example, many brokerage firms will take your money, charge you a substantial fee to buy and sell investments, and that is about all.
Other firms - in my experience typically independent financial planners - will provide a similar service at a similar fee - but will also include detailed financial planning and non investment financial advice.
Furhtermore, some brokers will charge you a fee for investment management - and then build into your portfolio products that pay a commission as well. Just my opinion, some will object - I think if you pay someone to manage your investments they should a) put your interests first above their own - i.e. be a fiduciary and b) should be seeking out the very best (often but not always lowest cost) investments on your behalf, rather than choosing investments that will enhance their own income.
I would agree that the fee is worthwhile to the extent you don't have time, interest, or patience to really learn about how to be a good investor. (hint: it has more to do with what you DON"T do (panic when the market falls, trade frequently, make emotional decisions, etc.)
Consider looking beyond the brokerage channel and consider finding a fee only financial planner and compare levels of service, fees, and approaches. You can find fee only financial planner near you on www.napfa.org.
No. You can certainly use your profits to fund a regular IRA contribution, or to increase your 401k contribution, but you can't directly "hide" your gains. If you really need to do day trading (which is generally not advisable) I would suggest you perform the activity in tax deferred accounts.