MJT & Associates, LLC Financial Advisory Group
Mitchell Thompson works closely with clients to address their financial concerns and help them achieve their financial goals, and to regularly review investment selections for their continued suitability. He also collaborates with other tax advisors, attorneys, estate planners and other financial professionals to help ensure that all of his clients’ financial needs get met.
Mitchell has been working as a financial planner and investment advisor since 2000. He previously worked with GEN Financial Management., Woodbury Financial Group and Mass Mutual Financial Group. Mitchell obtained Certified Financial Planner™ designation in 2006 and is an active member in the Society of Financial Service Professionals (SFP). Mitch’s commitment to the community includes volunteering for the SFP Pro Bono planning alliance with the MS Society and the Autism Society of Minnesota.
Mitchell grew up in Renville in southwestern Minnesota. He obtained his B.A. in 2000 from Jamestown College with a concentration in Economics and Personal Financial Services. Away from the office, Mitchell enjoys his family, traveling, spending time outdoors, working in his woodshop, and visiting the cabin with family and friends.
BA, Business Administration, University of Jamestown
Assets Under Management:
Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Registered Representative, Securities offered through Cambridge Investment Research, Inc. a Broker/Dealer, Member FINRA/SIPC. MJT & Associates, LLC. Financial Advisory Group and Cambridge are not affiliated
With the caveat of not knowing all of your financial information and the understanding of this, I believe and explain to my clients that balance is needed. You need to work on both sides of the balance sheet, the assets and liabilities. If you don’t already have your Short-Term Emergency Fund (<2years) of 6 months of recurring monthly expenses, I would fund that. After that is funded, I would focus on a 3-legged stool approach; Pay-Off Non-deductible debt, Intermediate Goal Funding (2-7 years), and Long Term Funding (7+ years).
As far as the resource flow, I would have the following generic flow:
- I would contribute up to your maximum match in your employer pension plan, if available.
- Next, I would fund a Roth IRA, if you qualify.
- After you max out your Roth IRA’s or don’t qualify, I would fund your resources in the following manner
- 40% to your employer pension plan, until maxed reached
- 40% to a Joint Non-Qualified Brokerage account for you and your wife. This is where all “overflow” resources would flow after everything else is funded or paid off.
- 30% to your Non-Deductible Debt
I would not rush to pay of your mortgage as it is probably a 30-year amortization and has a low interest rate. Would you rather save 4%, net probably 2.5%, (buy paying down your mortgage) or earn 10%, net 8.5%, (the S&P 500’s 20-year average rate of return)? I would make the point that you would want to keep the arbitrage and not give it away.
You need to factor in the liquidating and cash flow concerns that are key for today as well as in the future. Having these available opens up options for you and your wife.
Hope this helps and have a great day.
First and foremost, I am very sorry for the loss of your husband and your families grief. My main recommendation is to do nothing for a year. Take this time to focus on your immediate needs and cash flow as well as take the time needed to grieve and find your “new normal”. This allows you and your family to focus on your “church” and allow “state” needs to wait until it is appropriate to address those needs and issues.
I would also take this time to review, interview, and attain a fiduciary financial advisor. The character of a fiduciary advisor is to put the client—you—first. You are the client, and your needs, wants, and wishes should be a priority first and foremost above anybody else’s. What you’re going through is very difficult since it involves a lot of technical and foreign verbiage as well as processes that you may not understand, nor should you. This is your first time going through this, and it’s something that you should not have to feel like you are going through alone. As an experienced advisor, to use the old cliché, “This isn’t my first rodeo,” nor should it be of any experienced financial advisor. Like myself, other advisors have helped other clients go through the very same loss of a spouse that you have experienced. They, like myself, will help navigate your way through what needs to be done today and what can and should wait until tomorrow, which should be in 9 to 12 months. A good holistic advisor would know this and would personally help you walk through all of these issues based on your needs, wants, and wishes. Your advisory team should be focusing on allowing you to concentrate on your “church” and health while allowing the “state” to settle and address those issues when it is appropriate and you are less emotional. Your “church” is what is most important, and taking care of that will take care of your “state.”
Any pressure to invest any monies, sell property or the business interest, or completely restructure any of your assets is wrong and a definite signal that that particular advisors is not appropriate who will have your best interests in mind, not theirs.
As long as you immediate needs and cash flow are being taken care of, there is no need to rush into other discretion’s. One year of waiting and collecting thoughts will not hurt you and will actually help you make the best decisions possible with a clearer mindset and goals.
If you have any further questions, concerns, or thoughts; please don’t hesitate to contact me or another fiduciary financial advisor.
Again, I am sorry for you loss.
Mitchell J. Thompson, CFP
Navigating Clients to Financial Success