Sullivan Financial Planning, LLC
Kristi Sullivan has been helping people achieve financial security since 1996.
After graduating with a B.S. in Business from Colorado State University, Kristi worked for Great-West Life in the employee benefits department for three years. This experience gave her a strong background in employer retirement plans, Flexible Benefit Accounts, and group medical plans.
Departing for Fidelity Investments in 1998 gave Kristi the chance to learn more about financial planning on a personal level. In her nine years at Fidelity, my duties included operations, compliance, financial planning, and teaching investment classes.
Sullivan Financial Planning, LLC was formed in 2007 with the goal of providing clients exactly the type of help they needed, without the pressure of corporate quotas or sales numbers directing the recommendations.
Kristi holds the Certified Financial Planner™ designation and the Series 65 and Colorado Life & Health Insurance Licenses. She is a member of the Financial Planning Association, The Alliance of Professional Women, The Women’s Estate Planning Council, and the Denver Alumnae of Chi Omega.
She is proud to have been a volunteer speaker for the non-profit Evelyn Brust Foundation. As a speaker for the Brust Foundation, she presented on achieving financial security at public libraries for the purpose of providing the general public an education without a sales pitch.
In Kristi's down time is spent with her husband and two sons. She is always up for a ski day, travel, seeing plays, and reading a good book.
BS, Business, Colorado State University
First, make sure that you have money set aside in a savings account to cover at least 3 months' expenses plus any short term expenses you know are coming (vacation, car repair, etc.)
If you have a retirement account at work, consider investing there and using your inheritance to back fill the money missing from your paycheck. There are great tax benefits when you save money in a 401(k) at work. If you don't have a work retirement plan, consider opening a Traditional IRA or Roth IRA and contibuting $5,500/year there. You can buy diversified mutual funds through any of these retirement plan options.
If you just want some ideas for diversified funds that you can take out at any time, consider mutual funds that invest in several areas of the investment markets at once. Target Date Funds are a good start for beginning investors.
It's hard to say that you have flaws, because there is not quite enough information to decide that. However, here are some things to consider:
You will need to budget an extra $6,000/year per person in medical insurance premiums (at least) for the 12 years until you turn 65.
If you retire in your early 50s, you should only be drawing 3% from your investments for a statisical average of assets lasting until age 95. You don't say what your other investments will be worth in your calculation, but take that number and multiply it by .03 to see if you get a result that you can live off of.
Hope that helps!
Is it the investments themselves that you don't like, or the fees the bank is charging to manage those investments? I ask this because if you transfer the account to another investment company but keep the same shares of stocks/bonds/mutual funds/ETFs, there won't be a sell of the shares for gains. You'll just be trading one holding company for another.
Let's say you want to sell all of the investments and start fresh. On $29,000, the normal 15% long term capital gains rate (assuming you are not in the highest income tax brackets) will cost you $4,350. Assuming you save .4%/year on average (you won't be getting investments that charge nothing), that savings is $440/year. It will take you about 9.8 years to make up the capital gains cost with just the lower fees.
Consider ways to slowly move appreciated assets (combining with investment losses, charitable gifting with shares) so that you don't take a huge tax hit all at once. Also, look at the funds in context of more than just fees. A managed large cap stock fund expense ratio is around .6%. Index funds are less, but overall your bank may be in line with averages for the industry.
Open a credit card, use it for a few purchases each month, and then pay it off every month. Credit card companies report to the credit bureaus (whose data is used to calculate your credit score) every month, so the fastest way to be recognized for good use of credit is by prudently using a credit card.
The ultimate tax implications are the same either way. You will owe income taxes plus a 10% early withdrawal penalty if you are under age 59 1/2. If you withdraw directly from your 401(k), the plan provider is required by law to withhold 20% income taxes to send to the IRS as a down payment on the taxes you will owe. If you roll to an IRA and withdraw from there, you can pick your tax withholding percentage, but you will need to pay up when you file your taxes at the end of the year.