Pring Turner Capital Group
Ever since he can remember, Jim Kopas has always had a keen eye for business. His “professional” career began at the ripe old age of 11 when he started a dog walking service in Walnut Creek to help neighbors with especially energetic pets. After just a few months of walking dogs and with years of accumulated birthday savings, Jim had enough money to open his first investment account. He has been enamored with investments ever since.
To grow his investment knowledge, Jim enrolled at Santa Clara University in 2005 and three years later received a BSC degree in Finance. Upon graduation he joined the fee-only investment advisor in Walnut Creek, California. This was just in time to be greeted with the greatest financial crises since the Great Depression, an even more valuable learning experience than college. In 2013, he earned the Chartered Financial Analyst®(CFA) designation, one of the most respected and recognized investment advisory designations in the world.
Away from the Walnut Creek office when not working as a financial advisor, Jim loves spending precious time with his wife Genna and daughters Kate and Charlotte. The Kopas family especially enjoys traveling, attending Cal Football games, and long walks around the Walnut Creek area with the family’s golden retrievers.
BSC, Finance, Santa Clara University
Assets Under Management:
Pring Turner is an investment advisor in Walnut Creek, Ca registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The views represented herein are Pring Turner’s own and all information is obtained from sources believed to be accurate and reliable. This information should not be considered a solicitation or offer to provide any service in any jurisdiction where it would be unlawful to do so. Past performance does not guarantee future results.
Pring Turner Investment Management
Great question! First and foremost congratulations on starting your first job and beginning to save for retirement at such a young age! In the long-run this will be a tremendous advantage for you since it gives you an extremely long time horizon to compound investment returns.
Also given your current income level it sounds like you have made the smart choice in saving in a Roth IRA. Overtime as your salary grows you will likely reach a point where a traditional IRA (or 401k) might make more sense as you can defer income taxes – but for now a Roth is ideal for you given that you are in a relatively low tax bracket.
Your additional savings ($16k for retirement and $15k for future expenses) could be put into taxable brokerage accounts so you can invest and grow that money. Keep in mind you will probably have two different investment approaches for these two “buckets” of money. Your retirement money has a very long time horizon while your “future expenses” money will likely be needed much sooner and thus will likely be invested differently.
All in all you are doing all the right things. Just continue to: 1) Always spend less than you earn, 2) Invest in stocks for the long run, 3) Do not touch your retirement savings (let it grow), and 4) Let compound interest do all the heavy lifting.
Charlie Munger, the outspoken and incredibly wise vice chairman of Berkshire Hathaway explains it best, “Spend less than you make; always be saving something... Overtime it will amount to something. This is such a no-brainer.”
Best of luck!
The first question should be: Are you a fee-only investment advisor? This arrangement eliminates conflicts of interest between you and your investment advisor. These next sets of questions are a very good starting point for learning if a particular fee-only investment advisor is a suitable match for you.
- What is your investment strategy? Keys: Is the strategy easily understood? Does it make sense to you?
- How long have you been investment advising using this strategy? Key: How much experience does the investment advisor team have?
- What is your investment performance? Keys: Not only what are the returns, but more importantly, how much risk was taken? Is the performance history documented and does it adhere to Global Investment Performance Standards (GIPS)? GIPS is the investment industry’s gold standard used to measure investment performance and can also be used to easily compare managers. How has risk been quantified?
- What are the worst percentage drawdowns during the bad periods? Keys: How much time did it take for the investment portfolio to get back to new highs?
- Does the investment advisor communicate what you own and why? Do they communicate when performance slides and things are not going as well?