DRM Wealth Management, LLC
President Founder - Financial Planner
David Rae is the independent LA CFP®, AIF® to Lead Your Financial Team. We believe everyone can retire earlier and with more money than they ever thought possible.
For a Free Copy of David Financial Book visit http://www.financialplannerla.com/torrance/
David Rae, Certified Financial Planner®, Accredited Investment Fiduciary® and Wealth Manager positions his clients for prosperity.
Name one of the "100 Most Influential Financial Advisors" by Investopedia.
“Once you get your financial house in order,” he says, “It’s a lot easier for everything else–personal life, professional life, family life and recreational life–to fall into place too.”
Working with a wide diversity of clients for well over a decade, he has built a successful career developing comprehensive financial plans to meet life goals, retirement, tax planning, estate issues, portfolio revision, life insurance, portfolio management, business exit strategies and more. While based in Los Angeles, he serves clients across the country. At the same time, he enjoys a solid reputation as a smart, go-to financial guy for both mainstream and LGBT print, broadcast and online media.
David grew up Irvine, California. His father Mike Rae retired from a career as an NFL quarterback (USC, Raiders, Redskins, Buccaneers) while he was still in elementary school. This gave him a front row seat to retirement planning and money manners early on. His mother, Terri, was something of a financial genius who ran a tight ship, planned carefully, got the most bang for the buck and successfully avoided the financial traps that often snare former athletes and their families.
At the University of Redlands, David majored in Business and Musical Theatre, earning full-ride scholarships in both disciplines. A year studying abroad in Vienna, Austria – in addition to consistent and considerable amounts of world travel that he keeps up to this day – engendered a dimensional world view about peoples and cultures.
Life in finance
Financial planning has proven an excellent fit for fully engages David’s considerable math, social and communication skills. He began in 2003 as a Financial Advisor and hit the ground running. After completing the CFP’s rigorous two-year preparation program, in 2006 he passed the two-day CFP exam (the financial industry’s equivalent of the bar exam) with flying colors, earning him his professional certification. He achieved his Accredited Investment Fiduciary certification in 2015. He became President of DRM Wealth Management in 2017. This independent RIA specializes in helping the friends on the LGBT community reach their financial goals.
In addition to building his own business, David has always been active in helping others build their businesses as well. In 2004, he founded the Beverly Hills Breakfast Club chapter of BNI, an international networking group, which has grown today into the largest and wealthiest chapter in Southern California. He was also named an "Adviser with Heart" by Wealth Management Magazine.
“There’s a significant lack of financial literacy in the general population,” David reports, “Even among those who are very bright. This may be related to being phobic about math since so much about money is really about math too. My function is to translate what may seem to be overwhelming and confusing concepts and programs into something clear, understandable and attainable. Essentially it’s pretty simple. You have a dream or life goal? Great, let’s sit down together, plan a workable strategy on how to finance it and make it a reality.”
David Rae is the go to Financial Expert for the media. He has been seen, quoted and published in many national publications including Nightline, ABC News, CBS News, Fox News, NBC News, KTLA News, KCAL 9 News, Time Magazine, MSN Money, Men’s Health, NBC News, The Today Show, US News & World Report, Yahoo News and 401(K) Specialist Magazine and many more. He blogs weekly on financial issues for The Huffington Post where he is noted for his trenchant observations and spot-on wit. He is also a regular contributor to The Advocate Magazine and Investopedia blogs. Recently, David was interviewed by Nightline. He also has his own personal finance blog Financial Planner LA
David has completed the 545 mile Aids Lifecycle bicycle ride from San Francisco to Los Angeles for seven years in a row becoming not only a top fundraiser personally but heading a team that raised over a million dollars for the organization. A longtime and enthusiastic resident of West Hollywood, he lives with his husband Ryne Meadors and their two chihuahuas.
More info at www.davidraefp.com
or the top rated www.FinancialPlannerLA.com blog.
BA, Business Adminstration, University of Redlands
Assets Under Management:
All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security investment or instrument or to participate in any particular trading strategy.
Securities and investment advisory services offered through DRM Wealth Management LLC Registered Investment Adviser. DRM Wealth Management LLC, Trilogy Capital, TD Ameritrade, SEI and Investopedia are separate and unrelated companies. www.financialplannerla.com
Fiduciary Rule and Dodd Frank Video From ABC 7 News
Record Powerball Lottery What to do if you Win - VIDEO
Tax Reform and your Wallet NBC News with David Rae
How to get a Friend to Pay You Back KTLA Video
Couple things to think about here.....
the shorter time you own the house the great the risk of losing money on the property. But it sounds like you are mostly trying to lower your monthy expenses.
With your assumptions of a $175,000 (or less) house - if you can put 20% down your payment would be less than $1000 per month (depending on where you live and taxes). That means you would be saving $500-750 per month plus get a tax break. AND some of that monthly payment would go to paying down the mortgage.
As long as you think the house won't lose more than $500/m in value the time you live there, seems like a no brainer. Even if the house doesn't go up in value at all you would have a tough time losing money.
Best of Luck,
You bring up a great question that I hear a lot when people read about the 4% rule of thumb for retirement income. People often think they must spend the Required minimum distributions when they take them. This is not the cast. You would take 4% each year, and the rest would be reinvested into a taxable investment account.
RMDs are based on an average life expectancy so if you spent your RMD every year, the odd or running out of money before you run out of life would be HUGE for many retirees.
Reminder the "4% rule" is a just a rule of thumb- and not a guarantee of running out of money. Work with a CFP to make sure your have an appropriate spending plan for your need and life expectancy.
I think the most important thing is to get started. At the beginning the growth on your account will most be from your contributions. Earning 10% of $100 means $10 in profit. Over time compounding will help the account grow even faster. Picture the same potential 10% return on $100,000 all of a sudden your account increased $10,000.
Tips- Make the contribution automatic- so you put away $100 per month on the same day into the same investment each and every month whether the stock market news is good or bad.
At this point and at your age look for a low cost index fund or ETF without transaction costs. $4.95 per trade may not seem like a big deal- but that's huge for someone saving $100/m.
Mark your calendar to try increase the $100/m over time. Even if just upping it to $105 or $110 it will really start to add up over time.
My initial thoughts would be to invest at least enough to get any employer match for your 401k at work. You will get a tax break and free money from your boss.
From there I would pay down your credit cards. If you other debt student loans are car notes with high rates- but some money towards those.
If there is anything else left over I would look at investing in a taxable account- where the money can grow but still be usuable for other financial goals you may have.
Whatever you do, put this money to good use.
Best of Luck.
I would say investors love bear markets and putting thier money into the stock market.
The average person likely pull money out of the stock market and hides in cash or bonds until the market goes back up, or the news sounds rosier.
Over the longer term the stock market has averaged say 11% and the average investor has averaged 3-4%- Which of those returns would you rather have?
Make sure to invest automatically into a diversified portfolio over time. That way you buys more when times are bad and less when times are good.