Phoenician Financial Planning, LLC
Owner and Financial Advisor
J.K. Roberts has worked in the investment and finance field since 2003. He is both a Certified Financial Planner™ certificate holder and a Chartered Retirement Planning Counselor℠. He earned a Master in Business Administration and a Bachelor of Science in business management. He currently holds an Arizona Life, Accident and Health or Sickness insurance license and the IRS Preparer Tax Identification number required to complete client tax returns. He works as an independent financial advisor as a Arizona Registered Investment Advisor. In the past, he held several Financial Industry Regulatory Authority and National Association of Securities Dealers investment securities licenses.
He has worked with high net worth clients for The Vanguard Group and Ameriprise Financial. While at Merrill Lynch, he created financial plans for hundreds of clients. He has also worked with Jackson Hewitt and the Arizona Department of Revenue during the tax season. Mr. Roberts spends his free time volunteering his financial expertise for various organizations. He has served as Treasurer for several non-profit organizations, including his daughter's Parent Teacher Association, his downtown Phoenix historic district, and several political campaigns. He has also taught financial literacy for charity organizations and offered his tax expertise to help low income families who filed through the IRS Volunteer Tax Assistance and Tax Counseling for the Elderly program.
BS, Business Management, University of Phoenix
MBA, University of Phoenix
Assets Under Management:
The simple answer is yes, you can. The real question is if you should.
That's not as easy to answer and the repercussions could be long lasting either way. First off, do you need to devote all of your time and energy to school right now? If yes, using the money to cover expenses is a good idea. If your school work load is light enough, taking on a part time job would be a better idea. Think about that though... you don't want a job to take focus away on school. Your education is far too valuable.
On the other hand, those student loans have to be paid back with interest. I was in a similar situation a decade ago. I choose to use some of my money to support myself. It helped me finish my graduate degree, but unfortunately life happens after school.
My wife lost her job in 2008 Great Recession shortly after our daughter was born. I had left my higher paying job for positions that paid less, but focused more on the financial planning direction I wanted to go. A decade later, I haven't made the dent in payments that I would have liked too. Interest has added thousands to the cost of an already pricey education. Was it the right decision? I think it was for the time.
The best way to make a decision for yourself is to ask if these paying these expenses is a want or a need. Build a budget first, then go from there. If you can't budget around school and taking a second job (face it, school is a full-time job) is going to hurt your education, use the money now. Be mindful of the future cost though.
Everyone has given you a good idea that the traditional IRA is the way to go. Without knowing your full situation, it's hard to tell if there are other opportunities to save on taxes. I would consult with a CPA or CFP for more options. Depending on where you are in life, it could be a good time to start your own small business. There are a lot more tax saving options for small business owners, especially during the first years of business.
One of my more memorable clients talked to me about his favorite investment. He got $500 worth of a mutual fund for bar mitzvah. He never touched it and always reinvested the dividends. When we spoke, he was in his early 60s. The mutual fund was worth over $150,000 at that point.
The conversation taught me a valuable lesson early in my career. It's not how much you invest... it's how long you invest.
Great pointers from everyone here. One thing to ask for is an advisor's Form ADV. It's a disclosure form that explains everything you would want to know about them. Unlike FINRA, it will provide information on state registered investment advisors. If you want to see what one looks like, I have mine liked on my website's about page.