SJK Financial Planning, L.L.C.
Wes started his career as an insurance agent for his family’s independent insurance agency in Fort Worth, Texas, where he was born and raised. He owned several businesses over the years in the financial services and other industries.
After working decades in the insurance and financial services industry, Wes eventually left the insurance field to commit to financial planning and investment advising. Wes founded SJK Financial Planning, where SJK represents the initials of his children.
Wes graduated with a bachelor's degree in Business Administration from the University of North Texas majoring in Financial Planning. In addition to being a Certified Financial Planner™ Professional, Wes is a Life Underwriters Training Council Fellow (LUTCF). Wes is also an active member of the DFW chapter of the Financial Planning Association.
In his personal life, Wes has raised three children and seen them through college. He has been active in church, school, and professional organizations all his life. Wes enjoys the outdoors participating in backpacking, hunting, fishing, canoeing, and camping. He likes to cook, garden and read. He has a passion for old movies and is a Turner Classic Movie fan.
BA, Risk Management, Insurance, & Financial Services, The University of North Texas
Assets Under Management:
Wes Shannon, CFP
The answers already given are correct but I just want to ad one more item. In a short sale, the lender ends up writing off the loss (difference between the sale and the mortgage). This loss is then reported as income to the seller of the house since it is a loan forgiveness. An example would be that Bob sell his house for $225,000 but the mortgage is $235,000. The mortage company agrees to take the $225,000 as payment of the mortgage and they will write off the $10,000 as a loss but will send a 1099 to Bob for him to report the $10,000 as income on his tax return. Bob will pay the taxes on the $10,000 which could be as much as $3,900 if Bob is in the top tax bracket.
Start investing monthly into an after-tax investment account using ETF's. I would suggest a growth oriented portfolio and then if and when you should need the passive income you could change your portfolio to an income oriented goal. Doing it in an after-tax account would give you full access for income if you need it. Basically what I suggest is grow as much money as you can while you are working and then if you suffer a period of unemployment you can have funds to invest into income producing investments for the passive income.
You need unbiased advice from a fiduciary. Go to www.letsmakeaplan.org and find a Certified Financial Planning Professional™. Seek a “fee only” planner who is with a Registered Investment Advisory (RIA) firm. Get a formal financial plan written and then invest with the RIA firm. Most firms will charge you a percentage of the Assets Under Management (AUM) and that will be deducted from your investments. Get the written plan first before moving the money to the firm. Ask for the adviser’s ADV part 2A and part 2B disclosure brochures and read them before making the decision to meet with them.
Congratulations and good luck.
Your question generated more questions in my mind, but before I ask more I would suggest you pay off the credit cards with the $200K. In regards to the housing situation, can you afford to make the mortgage payment, taxes, and upkeep on your present income? If not, sell the home and take whatever equity you have plus the remaining $150,000 of the settlement. Then find a Certified Financial Planning Professional™ in your area and get a financial plan. Plan on spending about $1500 for the plan. Good Luck!
Your questions are perfect, they identify all of the problems with investing in small crowdfunding opportunities. Unless you personally know the owners of the company offering stock and you trust them and believe in their business model, you should stay away from crowdfunding investments. There is a limited market for their shares and basically the crowdfunding is just replacing the job of a venture capital firm, but spread amoung many people thus not haveing the influence of a singe venture captial fund. Crowdfunding will make you money only if the business grows rapidly and provides sustainable profits. Then when the company goes public or the owners buy you out will you realize a return on your investment.