The Wealth Coach for Women, Inc.
Certified Money Coach
Therese Nicklas is a Certified Money Coach(TM) at The Wealth Coach for Women, Inc, a fee-only Registered Investment Advisory firm. She is committed to helping smart, successful women learn how to make wise financial decisions. She knows coping with money issues is a struggle for many, even when they are successful in other areas of their life. The financial impact for women in transition from divorce, death of a spouse, caring for a family member or changing careers is profound. Often they were not the person handling the household finances and do not know where to begin. Given this, Therese's mission is to provide tools and resources to help them gain clarity and confidence so they can move forward with their lives.
Therese's Wealth Coaching process helps her clients identify what holds them back and move beyond these limitations. Her clients are bright, successful women. Many are entrepreneurs. They are brilliant at helping others but often lack confidence when it comes to money management and business expansion. Therese's distinct coaching program helps women solve common problems associated with choices from their past caused by unconscious money patterns. Money Coaching bridges the gap between behavioral finance and traditional Financial Planning. By identifying the bad habits that hold a person back and replacing them with positive behaviors, the client is empowered with smart money strategies that help them attain their goals.
Therese's Passion Inspired, Purpose Driven(TM) approach helps clients take some of the uncertainty out of tomorrow so they can live their life by design, not default. Together they utilize a holistic financial life planning process that consolidates the fractured advice they may receive from multiple sources. By coordinating the services of her client's financial team, the possibility of something significant falling through the cracks is minimized. Throughout the process, Therese holds their hand while holding them accountable.
Therese has been featured in the Wall Street Journal, Forbes Magazine, and more. She is a sought out speaker, serving as a subject matter expert for many healing arts, divorce mediators and grief counseling centers.
BS, Business Administration, Eastern Nazarene College
Certificate in Financial Planning, Boston University Center for Professional Education
Assets Under Management:
Investment advice offered through The Wealth Coach for Women, Inc.® a Registered Investment Advisory firm offering fee only advisory services in the State of Massachusetts and in other jurisdictions where exempted. Custodial services offered through TD Ameritrade Institutional, Member FINRA and SIPC. The Wealth Coach for Women, Inc. is a separate entity from TD Ameritrade Institutional. For a list of states where I am registered to do business, please visit www.wealthcoachforwomen.net. Third party posts found on this website do not reflect the view of TD Ameritrade Institutional and have not been reviewed by TD Ameritrade as to accuracy or completeness.
What Happens When Passion and Purpose Collide
You might want to meet with the financial aid advisor at your school. Sometimes grad school loans include a cost of living stipend. If you only want money for tuition, you can ask how you should fill out the application to receive less. It is also possible you received the amount for the full school year. How did you plan to pay for next semester? If you were planning to borrow, use the $8,000 toward next semester. If you don't need it, you can either start paying your loan back or put it in a separate bank account to use for future semesters. If you think you will need to borrow again in the future, paying the loan back now might complicate things. I hope this helps.
The short answer to your question is "yes" if you are willing to pay cash for the house. But now I must put my Money Coach/Financial Planner hat on...
First, congrats on the inheritance. If it was due to the loss of a loved one, my condolonces for your loss. For someone to amass that amount of money, they had to be a disciplined saver, investor and live below their means. My first recommendation is to try to glean a life lesson from them. Too often I see inherited wealth evaporate because the person inheriting feels compelled to raise their lifestyle beyond what is normal for them. Based on the data you shared, it appears you and your wife have a comfortable but moderate lifestyle. Buying this house will elevate your lifestyle and the expenses that go with it considerably. Are you considering this house because it has income potential?
By purchasing a house for $950,000, you are buying something that eats up close to 50% of your inheritance. Is that really what you want to do? If the house is much larger than your current residence, do you really want the upkeep, taxes, utility bills etc. that will go along with the house? My professional advice would be for you to really look at all the expenses involved with buying this house. Regarding Social Security, my rule of thumb is to wait until you are full retirement age to draw. Starting at 62 reduces your payout by 25% for the rest of your life. If you and your wife have earned income, you will pay a large penalty on the social security income until you reach full retirement age. Since you are obviously not desparate for money, it does not make any sense for you to start your social security pension early. By making prudent, thoughtful decisions you will have a better chance of having this money last beyond your lifetime.
It's great that you are looking for ways to save and invest at your age, congratulations! Before I would recommend any type of investment that ties up your money, I would need to know how you are paying for college. Did you get a full scholarship? Are your parents paying for it? If you have any financial obligation toward college (even living expenses) my advice would be to save your income for that. If you don't, I would recommend a Roth IRA because you are in a low income bracket right now.
It depends. The short answer is your mother can gift up to $14,000 a year without incurring gift tax issues. The reason I say "it depends" is the money was inherited by your mother. You didn't indicate how much she inherited or her financial status. How is her savings? Is she financially prepared to pay potential medical expenses in retirement? If Mom runs out of money, are you committed to helping her financially?
if you are enjoying the benefits of a Master's degree with a good paying job (you mentioned you can do more than the minimum) you can either remain independent financially and pay your own loans as is or
refinance for a better rate or
Take a LOAN from mom that you pay back. This would need to be in writing and paid as scheduled, otherwise she would incur a gift tax. If you paid her 4%, it would be better than what she could get in the bank and it would save you money. Unless the amount of money Mom inherited is way more than she will ever need, I am personally not a fan of having her gift a large sum now.
Congrats on having a plan to satisfy college debt quickly! It sounds like you are doing a great job handling financial matters. To answer your question, I recommend clients keep about 6 months worth of normal monthly expenses in a cash position for emergencies. The "job" of the cash is to be readily available and safe in case you have an emergency. If you can find a decent interest rate at a bank, great. Don't worry about potential growth for this pool of money. It's sole purpose is to be a safety net. Keeping it in a safe place is essential. You could find a CD that might be paying a little more interest, but watch out for potential fees if you need access. To be honest, it isn't enough money to worry about the interest rate difference. You are doing a great job so far, relax and enjoy!