Team Financial Strategies
Jody Team, a CERTIFIED FINANCIAL PLANNER™, started Team Financial Strategies in April of 2005. Team Financial has grown into a firm with four CFP® certificates and two CPAs. Additionally, Jody is the lead investment manager for The Texas Fund, a mutual fund that invests in companies headquartered in Texas. Jody has worked in the financial planning industry for 14 years. He enjoys working with individuals in ongoing relationships so he can better help and understand the financial picture when one of those big "life financial moments" arrive. In putting together Team Financial Strategies, one of his objectives was to create an avenue for young professionals to get financial planning advice catered to their situations while continuing to offer more traditional services to those nearing retirement.
Jody has been in this industry long enough to have experienced a couple of bear and bull markets. He has seen and worked with hundreds of clients in their planning situations. He started Team Financial Strategies out of a desire to serve and felt that his talents were best suited in financial planning. He loves that this firm has helped so many people and looks forward to seeing how the company can help so many more.
In his opinion, financial planning is more than putting together a retirement plan. Ongoing planning should help people recognize what is important to them and work towards making a difference in that area. Whether his clients are in the process of accumulating wealth, have inherited wealth, or have come into wealth by other means, his objective is to work with them to make sure that their finances make a positive impact on their life. When he came into this field, it seemed that so many people were being sold products but few were actually receiving quality advice. He had a desire to be part of that change in the community of people around him. Aside from working with individuals, Jody also enjoys working with independent contractors, small business owners, and employees/staff from local universities.
Jody Team lives in Abilene, Texas with his wife Rachel and three daughters Emma, Audrey, and Cora. Outside of the office, Jody enjoys watching and playing sports, spending time outside, and enjoying his life with his family.
BBA, Finance, Abilene Christian University
Assets Under Management:
Traditional open ended mutual funds are, simply put, a group of stocks bundled together in one investment. So one advantage is that you can buy one mutual fund and be invested in a large number of stocks. This gives you instant diversification reducing the risk of loss from one company going belly up. Mutual funds also give you access to professional management or if its a passive mutual fund access to a specific index. When you compare to an ETF I think the main advantage mutual funds have is they can be smaller in assets managed yet give you good liquidity. An ETF under $100 million in assets might have a large bid ask spread where a mutual fund will always reflect the price of the underlying stocks at the end of each day.
As a general rule, 25% debt to income is probably a manageable level. However, I like to get clients to think about cash flow. The more fixed expenses you lock yourself into, the less you can save and spend on things you enjoy. Society is nickel and diming you with a bunch of small variable expenses (think apps, memberships, warranties, etc). Try to look at this the other way. How much do you want to save every month? Go for at least 10%. What is the total of your fixed expenses as compared to your income? (debt payments, memberships, insurance, taxes, etc) If your total fixed expenses are more than 75% of your income, they will eat you alive. Consider keeping total fixed expenses below 50% of your income, save at least 10% and that should leave you plenty of flexibility to stay out of trouble.
If you do not have other employees involved in your 1099 work then you should consider a Solo 401k. With a Solo 401k only members or spouses of members can contribute. If you are over 50, the Solo 401k allows you to utilize the extra $6k of over 50 tax deferral (So combined $60k instead of $54k through SEP for 2017). You could also consider contributing for your spouse if he/she does work for you in your consulting practice.
Make sure and keep 3 months worth of your expenses (at least your base needs to meet bills) in cash. That probably does not leave you much if any of the $20K to invest. That said, if there is a fear of a job loss, you also probably need to try and start looking at where you can cut back in your budget now and store that away for a couple of months. That will prepare you more for a reduction in income and add some to your savings. Once you have done this and cover 3 months of expenses, you could start investing the remainder in a diversified investment account that you could access if you go through your 3 month fund.
It does sounds like your budget is extremely tight. I would say one thing you really need to look at is how much is being withheld for income taxes out of your paycheck or other withholdings. After withholding for social security and Medicare your check is probably down to around $1,900/mth. Your income taxes should be very low (I would guess around $200/mth but you need to really get a good calculation on this). Cash flow is king, so try to put something ($100/month would be great) into savings and if you adjust your tax withholding you can use those funds to help support your budget and put money away throughout the year instead of letting Uncle Sam borrow it from you at a 0% interest rate. It will take a little while to build up a pool of money but you can do it!