D3 Financial Counselors
Adam is a Co-Owner and a Senior Portfolio Manager at D3 Financial Counselors. He and Don Duncan oversee all of the Affordable Family Office services provided to D3 Financial Counselor’s clients. Besides portfolio management, Adam specializes in helping medical professionals and corporate clients with wealth accumulation strategies.
Adam joined D3's team in June 2008, after graduating from Eastern Illinois University with a specialization in Financial Planning. Adam earned his CFP® designation in June 2011 and his Certified Investment Management Analyst ® (CIMA®) certification in June 2012. Adam is also a NAPFA registered financial planner. Adam successfully completed D3’s Financial Planning Management Development Program and is now a part owner of D3 Financial Counselors. He has responsibility for helping to manage all of the Affordable Family Office services provided to D3 Financial Counselor’s clients. Since 2012, Adam has been conducting seminars for graduating medical school and dental school students on debt reduction and wealth accumulation strategies at the University of Illinois at Chicago.
Raised in the northwest suburbs of Chicago, Adam currently lives in Lisle with his wife Amanda, daughter Addison, and dog Chula. In his spare time, he likes to stay active by biking, running, playing tennis and skiing. He also enjoys the sports, music, and food culture that Chicago has to offer.
Assets Under Management:
Most companies will only allow an 80% loan to value on a refinance, or will increase your interest rate if the loan to value exceeds 80%. You will likely not be able to "cash out" more than about $28K.
I would ask a few questions before refinancing:
- How will this affect my cash flow? Will I end up increasing my loan servicing expenses? Can I afford this increase?
- Am I reducing my interest rate of my loans (is the 3.25% loan less than the interest rate of my other debt)?
- Do my loans that I am looking to pay off carry any special provisions that I can take advantage of (perhaps you maybe eligible for loan forgiveness on the grad loans depending on the loan type)?
Even though I rarely recommend whole life, there are benefits:
- Forced savings - Your "premiums" pay for both life insurance, and are used to build up the cash value of a policy. These can be good savings tools for people who have trouble otherwise setting aside money for retirement or other goals. They can also offer somewhat attractive returns for investors that are not willing to tolerate investment risk (at the cost of high fees, and lack of liquidity).
- Tax deferral - You are able to pay for insurance with investment earnings, which are not taxed as long as they stay in the policy. Taxes are incurred when you pull earnings out of the policy. There is an economic benefit to deferring taxes.
- Insurability past a certain term - If you have a need for life insurance past working age, these can be a good tool. You may need insurance past working age if you have a single life annuity, or if you would like to use insurance to fund a legacy goal/pay for estate taxes.
"I feel like these salesman have no experience and know less about personal finance than I do." You are probably right. These are high commission, highly profitable products to sell. Ask these advisors if they are fiduciaries (meaning they are working with your interests first). My guess would be that they are not.
From my experience, diversifying between multiple institutions, especially if you are a high net worth investor, can create issues.
By adding another institution into the equation, you are likely paying more, and creating potential for errors in communication. A few examples:
- You give institution A your taxable account, and institution B your IRA. This limits each institution's ability to create tax alpha through asset location.
- If one or both institutions are providing financial planning, are they able to incorporate each other's accounts on a real time basis to provide you with recommendations based on accurate data?
- Most firms have declining pricing models (the more they manage, the less you pay as a % of assets). By using two firms, you will likely pay more in total than using one firm.
In my opinion, the reason to diversify firms is if one firm does not implement a diversified portfolio, or is making large tactical changes to your portfolio. Having two firms would reduce your "manager risk" in this instance.