Kathryn Hauer

CFP®, EA
Personal Finance, Retirement, Taxes
97%
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215
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26
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“Kathy, author of "Financial Advice for Blue Collar America," helps you plan and manage your money while teaching you about financial matters and financial safety. She was named one of Investopedia's Top 100 Financial Advisors of 2018.”
Firm:

Wilson David Investment Advisors

Job Title:

Financial Planner

Biography:

I fix things. My specialties are financial planning, financial literacy education, taxes, and investment advice, but over my 30-year career, I've been able to help people fix problems with money, construction projects, meetings, sentence construction, culinary disasters, and academic difficulties.

I wish I were like Samantha of the TV show Bewitched and could just twitch my nose to repair everyone's problems. Unfortunately, no magic erupts when I twitch my nose. I help clients using my knowledge, experience, and hard work...although I like to think that our working together has its own magic. My work as a lecturer, teacher, copy-editor, writer, presenter, negotiator, researcher, and office manager in a diverse cross section of business, educational, and government organizations has helped me gain the depth of knowledge needed to advise my clients in all aspects of sound financial planning and investment. I have been described as a fast, cheerful, flexible worker who rapidly resolves unexpected problems and project difficulties. I manage work quality and time based on guidelines provided and use my talents to provide customers with top-notch service.

As a champion for financial literacy, I speak at high schools, libraries, career fairs, churches, businesses and community groups - anywhere I can get a platform! - to raise awareness about financial knowledge and safety. I recently published "Financial Advice for Blue Collar America" which offers guidance on basic concepts of money including insurance and taxes, financial traps to avoid, how to pay for college and tech school, and info about the bright future ahead for blue collar careers.

Education:

BA, College of William and Mary
MA, College of William and Mary
MBA, University of South Carolina

CRD Number:

6380680

Disclaimer:

By choosing to work with this Advisor, you acknowledge that neither Wilson David Investment Advisors nor this Advisor makes any representations or promises that the services you receive are appropriate for you and your business or guarantees any specific outcome or results. Wilson David Investment Advisors does not guarantee the suitability of the Advisor for your particular needs and does not endorse the advice and services rendered by any Advisor. Wilson David Investment Advisors is a registered investment adviser registered in South Carolina and GA through FINRA. Any commentaries, articles or other opinions herein are intended to be general in nature and for current interest. All content on this website is presented as of the date published or indicated, and may be superseded by subsequent market events or for other reasons. All investments involve risk, including loss of principal invested.  The answers presented on Ask an Advisor should be considered general information presented to inform the public. They are based on the information provided in the question, which may have omitted important details that would have changed the answer had they been known. Please consult a financial advisor before concluding that the information is relevant to your own situation.

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    Debt, Retirement, Real Estate, Insurance, Women & Money
Should I pay down student loan debt or start a business?
100% of people found this answer helpful

Hi!  So glad you wrote to us.  My colleagues offer great advice, and I’d like to add few thoughts. I love your idea of arranging your life to be able to care for your kids yourself as much as possible. I was able to stay home with the kids for 4 years, and after that I had flexible, non-demanding jobs during their growing-up years. Our two kids are now 30- and 27 years old now, and making that choice to put them first was the smartest thing I ever did. My husband was completely behind this decision, both emotionally and financially…and he didn’t divorce me later, either, for a new “trophy” wife, ha ha. Well, at least not yet – but we’ve made it 35 years, though, and I’m a pretty good cook, so I think we’re ok! So that plan worked for our family, but the financial risks when a person (usually a woman) makes that decision can be very negative and detrimental.

I realize that your plan is to work from home, and in today’s “gig” economy with all its remote work possibilities, that desire is more realistic than ever before. However, starting a business is usually very time-consuming and capital-intensive; it’s unlikely that your new business will be profitable in its first year and even less likely that it will generate income even close to the $70K you are currently making per year. So you and your husband will want to make sure that you can live and continue to live comfortably on $65K per year rather than $135K in case you don’t bring in any income for a year or two or more. That’s a huge drop in income; you might want to try a month or two of living on that amount of money and see how it feels, trying to imagine how it would be with another human being added to the mix.

You’ll have strong incentive to try to make that planwork because if you are like me, you are NOT going to want to leave the kids with other people while you go to work.  My husband faced a layoff when our second child was two, and we made the decision for me to go back to work. Even though I got a job just half a mile away, could come home at lunch, and was able to afford a caregiver who came to our house, it was awful to be away from the kids every day and entrust their care to someone else not me.

So if you find you are able to live on less, that will give you more courage to consider this plan. Another thing to think about is if you might be able to telecommute or work remotely or continue your current job in a part time status after you have kids. Do you have skills that will let you work from home for another company or your current employer rather than starting your own business? That option would minimize your time away from the children you are going to have.

Also, you will want to make sure your hubby is “in” – if he wants you to keep earning that $70K per year or if he isn’t happy about the self employment thing, it will be hard to make a go of it. Consider too that if you take time off from working to start a business, you won’t be putting in money to your social security account or a 401k, which could hurt in the long run if your marriage and/or business don’t work out and you’ve missed out on years of earning and years of gaining experience that will help you get continually higher responsibility and higher paying jobs. I don’t mean to be a kill joy here but that reality has negatively affected the long term financial well being of many women.

So in answer to your specific question about whether you should pay down debt or start a business, maybe what you could do is for two months send your whole paycheck to pay down your student loan principal and live just on your husband’s salary. That two-month trial will accomplish both goals and give you a window into how it might work in the future.

So excited for you as you think about becoming a parent. It’s been the best experience for our family, and I hope you’ll enjoy it just as much.  Best wishes to you!

July 2018
    Debt, Personal Finance
Should I take a personal loan to pay off high interest credit card debt?
100% of people found this answer helpful
June 2018
    Retirement, Retirement Savings
With only $192,000 saved, should I retire or not?
100% of people found this answer helpful
June 2018
    Military / Veterans, Estate Planning, Investing, Real Estate
Can I invest in real estate while young and in the military, and if so, how can I manage my investment while deployed?
100% of people found this answer helpful
June 2018
    Debt, Personal Finance
Should I postpone attending college to pay off my current debt, or go further into debt to pay for school?
100% of people found this answer helpful
June 2018