Coastwise Capital Group
Laurie Itkin is a financial advisor and wealth manager at Coastwise Capital Group, an award-winning boutique money management firm in La Jolla, California, where she serves clients throughout the country. Through her separate company, The Options Lady, she serves as a Certified Divorce Financial Analyst (CDFA) and provides analysis of the financial and tax impacts of proposed settlement options being considered by divorcing couples.
Laurie is often quoted in the press and regularly appears as a personal finance and investment expert on television and radio. Her book, Every Woman Should Know Her Options: Invest Your Way to Financial Empowerment, became an Amazon best-seller in three categories. She has a talent for communicating arcane economic and investing subjects in language that everyone can understand and has a passion for educating and empowering women to become successful investors. Laurie volunteers as a pro-bono financial planner for the San Diego Financial Literacy Center and as a mentor to women launching new businesses through Hera Labs' business accelerator.
Laurie received a B.S. in economics with a concentration in finance from the Wharton School of the University of Pennsylvania. Laurie lives in San Diego and enjoys playing squash and pickleball and practicing yoga.
BS, Economics/Finance, University of Pennsylvania
Assets Under Management:
Nothing contained in this publication or any answer provided is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. 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. Investment advisory services provided by Coastwise Capital Group, LLC, a California registered investment advisor. For more information visit http://www.coastwisegroup.com.
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Investopedia Interview Laurie Itkin Nov 2016
I agree with the answers the other three advisors gave. I do want to emphasize that if you want the money to grow over time, earning "interest" in today's low interest rate environment could be quite frustrating. I encourage you to learn about dividend-paying stocks, real estate investment trusts (REITs), and corporate and government bonds. These securities carry more risk than a CD or high-yield savings account but without risk you can't grow your money.
The bottom line is you need to determine when you might need to access these funds and what you plan to use the funds for. If you plan to use the money for a down payment on a house in the next 12-months, for example, than you want to keep the money liquid.
If you are receiving a potentially life-changing amount of money, then it is worth your while to interview a couple of financial advisors who can help you invest the money wisely.
Targeting an annual return of 8-12% is a simply that...a target. There is no way to guarantee a "steady" 8-12% return. However, history has shown that over long periods of time (i.e., 30 years or more) a diversified, dividend-paying stock portfolio with dividends reinvested will return about 7-9% on AVERAGE (not every year). So if you are in it for the long term and don't pull money out when the stock market has its dips, corrections, and crashes, you will be successful.
What exactly are you trying to "hedge?" Is your portfolio 100% stocks? 100% bonds? 100% gold? 100% real estate?
Are you afraid that Donald Trump will rise in the polls and that stocks will drop in fear of him becoming President? Do you believe that interest rates will rise after the election and fear that the price of your bonds will fall? Markets go up and down and any event can have a short or long term impact. It's impossible to predict.
If you are trying to hedge a long stock position, you can use options to partially hedge. For instance, you can sell call options against stocks you hold. Or you could possibly buy a put option on a major index. The combinations are endless. If you think volatility will increase, there are ETFs that move in the same or opposite direction of the VIX.
All of these are advanced strategies so please consult with a financial advisor who has expertise in hedging. In any case, a well-diversified portfolio that includes many asset classes that matches your time horizon (which is hopefully longer than November) is a good course of action.
I generally prefer ETFs to mutual funds. ETFs are diversified like mutual funds but trade like a stock. Many online brokerage firms such as Schwab and TD Ameritrade offer a large list of commission-free ETFs and some have very low expense ratios. If you do choose to invest in mutual funds, look for index funds with low fees.
Congratulations! You are in an excellent financial position and are being responsible by waiting a few years before attending an MBA program. You are on your way to paying off your current student loans and this will help your grad school debt be manageable.
If your employer matches more than $2K, I'd suggest increasing your 401(k) contribution so you get more "free money."
The interest rate on your student loan is fairly low, but you have enough cash each month to pay down the debt a bit faster.
You already have a robust emergency fund so if after doing the first two things, you still have a few hundred dollars a month of excess, (and don't make too much income to qualify), consider contributing to a Roth IRA and investing it conservatively as you may need to take out the principal to help pay for grad school. Since you are young, I'd suggest that your 401(k) be comprised of mostly if not all stocks as retirement age is far away.
Since I don't know your entire financial picture, I suggest you consult a fee-only financial advisor who could work with you for a couple of hours and give advice appropriate for your specific situation.