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
I like the way you think! It's rare than anyone actually makes money on a car purchase. If you are okay with the $5,000 car option, I say go for it. Your insurance premiums and license plate fees will be lower on the cheaper vehicle, too, so that's an extra savings.
You are asking a good question! Mutual funds and ETFs share many similarities, so you may not need to change all of your holdings. Some things to keep in mind:
ETFs are not always cheaper to hold than simlarly indexed mutual funds. Check the expense ratios on both before you make a change.
ETFs trade like stocks, so are subject to stock trading fees every time you buy or sell. If you are regularly dollar cost averaging or adding to your investments, a mutual fund could be the better option.
ETFs are typically index driven as you say, but not always. There are actively managed ETFs out there and their fees are comparable to mutual funds. Also, an index may not always be the appropriate vehicle depending on the area of the market where you are investing. For example, I would rather have an active manager picking emerging market stocks based on research and analysis than have an index of all emerging market stocks available.
Tax efficiency doesn't make a difference in your IRA accounts, but lower expenses do.
What you call "converting" mutual funds to ETFs is simply selling the mutual funds and then using the proceeds to buy ETFs. In your IRA and Roth, this will not incur taxes, but in your brokerage account, you could be paying capital gains taxes on the mutual funds you sell.
Hope that helps!
First, look at how long you will need the coverage. As an easy rule of thumb I like to say you'll need the coverage until your youngest child is out of college. If your youngest child is 5, 20 years will do. If your youngest child is an infant, you may want to get the 30 year policy.
Great job with your aggressive savings rate! At your age, you can put up to $24,500 into your 401(k). If your 29% contribution is getting you there and you still want to save more in a retirement account, you can put $6,500 into a Roth IRA or Traditional IRA. The Roth may be the better option so you have a diversified pool of tax treatments in your retirement accounts.
If you have a side gig in addition to your regular job (Lyft driver, part-time sales), you may be eligible to open a small business retirement account like a SEP IRA or Self Employed 401(k).
If you've maxed out those options, you could open an individual brokerage account (or joint if you are married) and invest as much as you like there.
Hope that helps!
First of all, great job living within your means so you have extra monthly money to invest. Step one is to make sure you have at least 3 months' of living expenses set aside in a savings account. That will provide a cushion if your income is less than expected.
Next, you can consider a self-employed retirement account. This allows you to put money aside and deduct the savings from your taxes. The investments can generally start small in these account. If you are a solo business owner with no employees a SEP IRA or Self Employed 401(k) are cost effective retirement accounts that you can open.
Another option is just a regular Individual Retirement Account (IRA) or Roth IRA. These accounts also give you tax benefits for investing.
A chart that I like to compare the different small business retirement account options is on Fidelity.com. Here is the link. https://www.fidelity.com/retirement-ira/small-business/compare-plans
Hope that helps!