Alex Koury is a CERTIFIED FINANCIAL PLANNER™ professions Professional and Wealth Advisor for Values Quest, Inc., in Phoenix, Arizona. In addition to being a CFP®, he holds the following securities registrations: Series 7, 9 & 10 – General Securities and Series 66 – through Commonwealth Financial Network®. Alex is also licensed through the state of Arizona, California, and Georgia for life, accident/health, disability, fixed and variable annuities and property and casualty insurance.
As Wealth Advisor for Values Quest, Inc., Alex provides financial services for Scottsdale and the Phoenix Metropolitan area. He is also an Investment Advisor Representative with Commonwealth Financial Network®, the nation’s largest privately held independent broker/dealer–RIA with $1 billion in annual revenues*, Commonwealth has the scale, stability, and resources to help us deliver the solutions our clients need. With a staff of approximately 810, Commonwealth helps approximately 1,710 independent advisors serve their clients and manage total account assets of approximately $114.4 billion.**
Values Quest, Inc., is an independent wealth management firm dedicated to helping their clients build and preserve their wealth and hard-earned assets. The firm’s independence enables Alex to establish working relationships with other industry leading financial professionals, estate attorneys, CPAs, and insurance providers. Alex leverages their expertise to create customized portfolios, and he only recommends those products and services that are specifically tailored to suit his clients’ unique needs and values. In addition, he prides himself on building lifelong relationships with his clients, which he considers family.
After graduating from Regis University in Denver, Colorado with a Bachelor of Science in Finance and a Bachelor of Science in Economics, Alex returned to his home state of Arizona. Alex is the Pro Bono/Public Awareness Chairperson for the Financial Planning Association of Greater Phoenix and provides financial planning education to other nonprofit organizations and private companies in the valley. In addition to his professional achievements, Alex enjoys sports, the outdoors and spending time with his wife, Amzi, and their 9-month-old daughter, Naila. A frequent hiker you may find Alex on Camelback or Piestewa Peak Mountain any given morning.
*As of 01/19/17
**As of 12/31/16
BS, Economics, Regis University
BS, Finance, Regis University
Securities and advisory services offered through Commonwealth Financial Network®, www.FINRA.org / www.SIPC.org, a Registered Investment Adviser. Fixed insurance products and services offered through CES Insurance Agency or Values Quest, Inc. 2720 E. Camelback Rd. Suite 200 Phoenix, AZ 85016, 602.765.2224. This communication is strictly intended for individuals residing in the states of AZ, CA, GA. No offers may be made or accepted from any resident outside these states due to various state requirements and registration requirements regarding investment products and services.
Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP in the U.S., which it awards to individuals who successfully complete CFP Boards initial and ongoing certification requirements.
I commend you for taking care of your family and taking a chance on yourself to start your own business. Financial plans are great when they work exactly according to plan, but then life happens and having the wherewithal to figure out where you go from here is important. You seem like you have a great attitude, and you are willing to do what it takes to hit your target. It is never too late to start fresh even at 43 years young. You and your wife will most likely live long into your 90's and possibly 100, but time is now of the essence to get your financial plan in order.
To answer your question, however, much information needs to be gathered:
- Budget/Cash Flow Statement
- Outstanding debts
- Understanding your goals and objectives
- College savings (if any)
- Other goals you may have
- Reviewing your company retirement plan
- Reviewing your company benefits
- Comprehensive review of your situation.
Understanding who you are and what you want to achieve will dictate how much money you will need to put away monthly. Since you are older, you will need to be more aggressive with your savings/investment plan. However, there may be other important matters to consider, such as your children and wife. What if you were to unexpectedly die tomorrow, or become disabled? Would you want your family to be financially secure? There are many questions to be asked and answered, but it would require you to speak with a financial planner to determine what is feasible.
I would be happy to speak to you further on a complimentary basis to understand more about your situation to determine whether I can help.
If your time horizon for this lump sum of money is 20+ years it is okay to invest the lump sum at once considering you will be investing in a broad portfolio like your current investments. Currently, valuations are still relatively cheap, and there may be more room for this market to run. Market volatility is at a historic low, and corporations are continuing to make significant profits. If you did not like the idea of putting all of your money to work in the market at once I would consider creating a timeline for yourself to invest the money. Let's say you have $100,000 to invest and you wanted to have it invested in one year. You could invest $25,000 every quarter if that made you feel better, but I wouldn't put too much thought in trying to time the market as time in the market is most important. You will be able to rebalance your portfolio regularly and still buy low, sell high. I would encourage you, however, to look at the bigger picture. Compare your investments today with your intended investments to make sure you are sticking within your risk tolerance and strategy.
Congratulations on taking the crucial step of asking this question so early in your financial life! After reading your story, it reminds me of when I was starting off my career. I received basically the same advice as you are today, and that is to save for retirement, etc. You are 100% correct in your statement, and that is why a financial planner can help you plan based on your lifestyle and long-term goals. I would say this - taking care of your short-term needs may affect your long-term outcomes, but that does not mean you shouldn't plan. Planning gives you more confidence in making decisions like saving for a home or taking the vacation you want. In addition, the advice you are receiving isn't good advice because it does not consider your unique situation and goals.
This is what a planner can do for you at this stage.
- Determine the amount of money you should be putting into your retirement.
- Helping you set up a budget that supports your short and long-term goals.
- People tend to be extreme savers or extreme savers, but there can be a healthy balance between the two.
- Setting targets for you like having money saved for a down payment on a home.
- Having an emergency savings to avoid going into debt.
- Help you prioritize your goals - What is most important to you?
These are just some examples, and working with a financial planner could be one of the best investments you can make at this stage. I would not feel intimated to find a planner that fits your needs, and the costs of setting up your plan would be relatively inexpensive as you don't have any complex planning situations at this stage. It is an exercise that will make you feel more comfortable and confident about using money and not the other way around.
I hope this helps.
First off, congratulations on saving over $100k in your retirement account. That is no easy feat, and it takes foresight to have as much saved up as you do. The immediate answer would be to use a 401k loan if you absolutely insisted on paying off your debt in full or using your $12,000 as well to get rid of the problem, but this story reminds me of some clients of mine that had a similar issue. They had the funds to pay off their large debt balance, but as soon as they paid off their loans they were right back to charging the credit cards again.
As a financial planner, I like to talk to my clients about their money habits to help them make the best decisions based on their financial personalities. So, you must answer the question, "How did I rack up $23,000 in debt?" Was it frivolous spending? Emergency? It is a nice thought to pay off your cards to qualify for home, but what happens when you are a homeowner?
You will have to consider expenses you have not had before like maintenance of your property. How will that fit into your budget, and how will you adjust your lifestyle to make the home a truly productive asset for you?
Certainly, you can do what you want, but if I were you I would review my income and expenses to see how I am living today to determine how a home will now have to be figured into the mix. In addition, I would highly encourage you to sit down with a financial planner to help you determine how much of a home you can afford. Buying a home is a big deal, and it can have significant ramifications on the outcome of your overall plan.
I hope this helps!
I would highly recommend speaking with a financial planner to help you determine the best use of your funds. Since the only information you provided is the amount of money you inherited no one would be able to give you sound advice. You may be well off already and not need the money, or you may need the money to support your lifestyle now.
Some things to consider at this stage in your life is the potential of needing long term care. What would happen if you were not able to take care of yourself? How would you want to be cared for in the event you needed assistance? Not properly planning for this potential event can expose you, your family, and assets to financial catastrophe. You can find out more information at www.longtermcare.gov