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.
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
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Tax Reform and your Wallet NBC News with David Rae
How to get a Friend to Pay You Back KTLA Video
So looks like you are seeing what happens when you work with Non Fiduciary Financial Advisors who are mostly compensated by COMMISSIONS. That being said I'm a big fan of the tax free opportunities available with Life Insurance. The 3-4% returns sounds quite low for this type of product.
ROTH IRA or 401k are accounts you want to be maxing out before considering Life Insurance. So keep life insurance on your radar for later in Life when you actually need life insurance, and are maxing out your other BETTER accounts like a 401k or ROTH. Also make sure to work with a trusted fiduciary FEE ONLY financial planner to avoid being sold stuff that may not actually be in your best interest.
For more on Cash Value Life Insurance check out these two posts:
I've found that easing into retirement and working part time has been great for many of my clients. You will have more money to enjoy your time off, or travel. Also insurance can be quite expensive. That alone is a huge benefit.
If you can wait to take social security. But if you need to take it now -some may end up being taxable if you work part time. If you and your spouse file a joint return with a combined income below $32,000, your benefits are out of reach. For income between $32,000 and $44,000, up to 50 percent of benefits may be taxable, and up to 85 percent if combined income is more than $44,000.
Way back when I started my ROTH IRA with just $25 per month. So if you are looking to invest - you can get started with $25 per month. TD Ameritrade has some great no transaction fee ETFs that you could potentially use and have the high trading fees.
On the other hand you are looking to stock trade- you are going to be pushing a boulder up a steep hill. You will like pay $6.95 per trade at TD. (Same reasoning will apply whether the fee is higher or lower than this elsewhere). That means right off the bat you are losing 28% of your investment.
Then you would have to sell again to get your money out. If you put in $25 paid the $6.95 fee you would need to earn 56% just to break even. That is ignoring any taxes that might be due on your gains.
I will leave the arguement of stock trading versus investing. But at you asset level you can save yourself time and hassle but using funds or ETFs or even model portfolios.
With the amount of debt you have in student loans it is imperitive that you finish the PSLF program. As long as you plan to complete the 8 years to have debt forgiven there is no reason to pay more towards you student loans.
As for saving for retirement- strive to save 10% of your income if possible. At the very least make sure to contribute enough to get any match that may be offered by your employer. This is like free money.
Even if you can't say 10% of your income right now- get started. You can increase the amount you put away over time. Also it is a good idea to try and set up an emergency fund with 3-6 months of expenses.
You can have a 401K and other investment accounts. Having a second invesment account can help you diversify your portfolio and choose specific investments that may not be available in your retirement account through work.