Gen Y Planning
Sophia Bera, CFP® is not your father’s financial planner. After working in traditional financial planning firms since 2007 she quit her job at a NY start-up to launch her own firm, Gen Y Planning. Now, she runs a 6-figure online business from her laptop. Her recent accolades include the “Top 40 Under 40” by Investment News, “10 young Advisors to Watch” by Financial Advisor Magazine, and “10 of the Best Personal Finance Experts on Twitter.”
Sophia’s been quoted in the New York Times, Wall Street Journal, Forbes, Fortune, Business Insider, Yahoo Finance, CNN Money, CNBC, Huffington Post, Mashable, LifeHacker, and more. If you Google “financial planner for millennials” she’s at the top of the list. When she’s not working from a coffee shop, you can find her in a yoga class or eating a breakfast taco in Austin, TX.
Gen Y Planning works exclusively with young professionals across the country to help them navigate through their finances as they experience life changes such as getting married, having a baby, buying a home, landing a new job, etc. Often times they are earning six figure incomes but haven't had the time to accumulate assets. Topics that arise include career coaching, student loan analysis, investment advice, saving for the future, company benefits optimization, insurance education, and tax planning.
Minnesota State University-Mankato
Assets Under Management:
Up front planning fee plus monthly retainer.
Quick Start session for $499.
Gen Y Planning, LLC is a registered investment adviser offering advisory services in the State of TX, MN, NY, CA and in other jurisdictions where exempted. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
Congrats on getting an early start! It sounds like you're already making a bunch of smart choices with your money.
I am a virtual financial planner for millennials and would be happy to work with you! I have young clients across the country. I love helping my clients use their money to live awesome lives. I focus much more on what you want your life to look like and then we figure out how to fund your goals.
I charge an upfront planning fee followed by a monthly retainer as opposed to solely focusing on assets. You can learn more about my services here. If you're interested, you can also apply to become a client by filling out this short Google form.
Way to go! I would focus on paying off your student loans and continue to max out your Roth IRA every year. Make sure that you have a few thousand dollars set aside for emergency savings as well.
If you are interested in starting a brokerage account to save for goals that go above and beyond retirement, I would start a "build wealth" account at Betterment. You can choose a percentage of stocks to bonds and then Betterment diversifies the portfolio into low cost index ETFs. You pay .25% to have Betterment manage the account but they wrap in all the trade fees. They also make it really easy to set up automatic contributions from your checking.
You're off to a great start! If you want to learn more about saving for retirement, I have a course called: Smart and Easy Retirement Planning for Millennials. You can check it out here: genyplanning.com/retire.
You are doing an amazing job of building financial security. For me that means: paying off debt, building up emergency savings, and getting on track for retirement. Here's what I would suggest:
- Make sure you are maxing out your Roth IRA ($5,500 per year)
- If you have a Health Savings Account (HSA) max that out ($3,400 per year). You have to have a High Deductible Healthcare Plan (HDHP) in order to qualify for an HSA.
- Then max out your 401(k) ($18,000 per year)
- Have 3 months of net pay saved for emergencies. I like using Ally Bank to keep emergency savings.
I do NOT recommend getting any type of Whole life insurance. I would open a brokerage account or a savings account to set aside money for these other goals depending on how far in the future they are. If the are less than 3 year, use a high yield savings account or a CD. If they are in the 3-10 year range then I would open a Betterment brokerage account and invest it more moderately then the retirement accounts. I like their Safety Net bucket.
A lot of life insurance agents will try to sell you insurance and you really don't need because you don't have any dependents. It's better to use savings and investing to save for these future goals otherwise the majority of the premium payments are going towards the insurance and not towards building up the cash value.
Here's an article that another CFP friend wrote that I agree with: https://www.aol.com/article/finance/2014/07/03/whole-life-insurance-bad-investment-most-people/20922084/.
I specialize in working with Millennials and if you are ever interested in hiring a financial planner, I'd love to work with you! Here's my site: genyplanning.com.
Usually, series EE bonds aren't earning much interest so I would recommend that you cash them in whenever you'd like and use that money towards your other financial priorities such as paying down debt, building up savings, or starting a Roth IRA. Good luck!
That's so wonderful that you recently sold your business! Congrats! While a lot of financial planners would recommend that you invest the money and don't pay off your mortgage, I tend to be in favor of paying off your mortgage because I've never had a client regret paying off their mortgage. One of my favorite financial planners wrote a great post on this topic which really changed my opinion on it.
However, since you're transitioning from selling your business to launching a new career, I might be more inclined to keep more cash on hand. Since your interest rate is at 4.25%, one thing I would consider is actually refinancing to a 15-year mortgage since you can probably lower your rate by about .50%-1% and cut a significant amount off the life of your loan, while also maintaining a nice sum of cash.
It's also a great time to max out your work retirement plan in the year that you sell (401(k), SEP-IRA, etc). This will help save you money on your taxes and then you can later look at doing a Roth Conversion next year when you're in a much lower income tax bracket.
I help a lot of clients in their 30s navigate through multiple financial priorities. I would highly recommend that you interview a few fee-only financial planners and find one that understands your unique situation. You can search for a planner in your area on NAPFA or you can look for a planner that works virtually like myself.