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
Yes, this is possible, but you will need to work with an estate planning attorney to create a trust with these instructions. Also, a trustee will have to be appointed to carry out your wishes through the decades. This could be a family member or a friend (whom the trust should pay for their efforts) or a hired corporate trustee. This could be an expensive proposition to plan and carry out, so decide how important it is to you to direct these assets from beyond the grave and then move forward with your attorney.
I like your half and half idea for the inheritance. Having no house payment is great and can free up money for more future investing. Plus, you'd have that great feeling of lowered fixed expenses. You don't say how old you are, but entering retirement without a house payment or rent is ideal. You still would have money left to invest a nice amount immediately, too.
A UGMA/UTMA (your state will dictate which one it is) is a good solution. The money is an irrevocable gift to the child and must be turned over to her at age 21. In the meantime, the money can be used for any benefit to that child from summer camp to music lessons, and yes, college. Setting up a trust would be expensive and probably more trouble than it's worth.
Congratulations on you positive cash flow! An easy way to decrease your taxable income is to invest more into your workplace retirement accounts. At your age, you can put up to $18,500 away pre-tax. However, before you do that, make sure you have an emergency fund in a savings account of at least 3 month's bills (rent, loans, utilities, taxes, food, insurance).
The biggest consideration most planners use to determine how much risk to take is how long it will be before you need to use that pool of money. That is not necessarily your retirement age. In your case, if you plan to work another 6 years and your wife's income plus rental income will cover the household bills, your time horizon is 17 years. That is a long time and you can still have an aggressive portfolio (assuming you have the stomach for it during stock market declines).
Even an aggressive growth portfolio should have 15% bonds at a minimum to give you diversification and cushion during a recession.
Hope that helps!