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Mitchell J. Thompson

CFP®
Personal Finance, Small Business, Lifestage Based Planning
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“ Mitchell Thompson, CFP®, 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.”
Firm:

MJT & Associates, LLC Financial Advisory Group

Job Title:

Owner

Biography:

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.

Education:

BA, Business Administration, University of Jamestown

Assets Under Management:

$25 million

CRD Number:

4272184

Disclaimer:

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

All Articles
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February 2017
    Asset Allocation, Choosing an Advisor, Financial Planning, Retirement Savings
June 2017
    Personal Finance, Real Estate
March 2017
    Choosing an Advisor, IRAs, Retirement Savings

All Answers
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    Debt, Financial Planning, Investing
What should we prioritize financially with a surplus of money?
33% of people found this answer helpful

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.

Mitchell

March 2017
    Life Insurance, End of Life, Women & Money
How should I invest my late husbands life insurance policy?
0% of people found this answer helpful
November 2017