MMBB Financial Services
Financial Planning Specialist
Alina has over 14 years of experience in the financial services industry. Previously, a Vice President and Credit Portfolio Manager with a major European investment bank in New York, Alina held major roles in investment banking, ranging from portfolio management and risk underwriting to investing in structured financial products.
Alina is CERTIFIED FINANCIAL PLANNER™ practitioner and graduated from the prestigious Personal Financial Planning Program at NYU. She holds her MBA in Financial Management from Pace University - Lubin School of Business in New York, for which she was awarded a Graduate Assistantship and the 2004 NY Annual Securities Conference Scholarship. Alina earned her Bachelor of Business Administration in Finance and Insurance from the elite The Academy of Economic Studies in Bucharest, Romania.
Alina provides comprehensive financial planning and asset management services to healthcare professionals, clergy, business owners and individuals. Alina abides by the Fiduciary Standard of care, which attests to acting in clients' best interest at all times. Alina works for her clients only, does not take commissions, so she can provide high level of service with no conflicts of interests.
Alina is a member of the Financial Planning Association (FPA) and a volunteer for the FPA-Pro Bono committee through which she spreads financial literacy among the under served low-income populations of New York City.
In her spare time, Alina enjoys classical music, playing tennis and skiing with her family.
MBA, Financial Management, Pace University Lubin School of Business
BS, Finance and Insurance, Academy of Economic Studies
The answers presented on Ask an Advisor, together with any commentaries, articles, or other opinions should be considered general information presented to inform the public. They are based on the information provided in the question, which may have omitted important details that would have changed the answer had they been known. Please consult a financial advisor before concluding that the information is relevant to your own situation.
You have to have at least 20% of the value of the house as down-payment, or in other words, to need only 80% to be financed through a mortgage. In addition, you need to cover closing costs (the bank should give you a good faith estimate of these costs). This way, you will avoid having to pay Private Mortgage Insurance, which is not tax deductible like the mortgage interest.
I would be happy to answer your question.
If your focus is saving for retirement, then you should consider having money saved in three buckets - one with tax free saving (money you paid taxes at contribution time and will take distribution tax free in retirement: Roth 401(k) and Roth IRA), tax deferred bucket (401(k) and Traditional IRA), and taxable brokerage account. This way, in retirement, you can make tax-efficient decision based on the different options you will have.
If your focus is saving taxes now, then a Roth 401(k) does not accomplish this because you fund it with after-tax money. You need to fund a regular 401(k). However, the limit you can save every year in the 401(k) is $24,000, so by saving $3,000 a month, you will go over that limit.
Lastly, you can save beyond your company's 401(k)/Roth 401(k) by opening a Traditional IRA or a Roth IRA and deposit $6,500 every year in it. You will need to know your Modified Adjusted Gross Income (MAGI) and depending on your tax filing status (Married Filing Joint or Married Filing Separate), you should determine if you can DEDUCT your Traditional IRA contribution or if you can CONTRIBUTE to a Roth IRA fund.
I hope this helps.
Alina Parizianu, MBA, CFP (R)
Two reasons. One is that clients don't make hiring a financial advisor a priority when they are in their 20s, or saving on their own for that matter, when this would be the ideal time to start saving and take advantage of the long time horizon they have for the returns in their portfolios to compound.
The other reason is from the advisor perspective. If charging 1% of the AUM, the more money the clients have, the higher the advisor's fee.
But advisors don't focus on certain age necessarily, some young clients inheriting large sums of money could be ideal candidates for most advisors. What most advisors have though is a minimum amount a client can invest with them, which would keep the majority of young crowd away from them.
But there are advisors who have no minimum, typically young ones at the beginning of their career, who can be a better match for you.
Check the CFP website below for a planner in your area and narrow it down for the ones with Minimum Investable Assets, $0.
Best of luck!
Alina Parizianu, MBA, CFP®
1. The best investment you can make as a young adult is investing in yourself, in your own education, after figuring out what you want to do.
2. Get rid of credit card debt if you have any to the point that you pay your balance in full every month and have a strategy for paying down your student loans as well.
3. Build your emergency fund gradually. A good rule of thumb is to have saved between 3 and 6 months of non-discretionary expenses in a liquid money market account, but it should be whatever makes you sleep well at night in case you lose your job, or an unexpected emergency comes up.
4. Make a plan to save for your financial freedom. Spend less than you earn.
- Pay yourself first! The sooner you start saving for your long-term retirement goal, the better it is. You are young, so make the time you have until your retirement age work in your advantage by starting to invest right away: a) contribute to company's 401(k) plan if available, take advantage of the match if available; b) open up a Roth IRA even if you don't benefit from the tax deduction advantage available with the Traditional IRA. You will get your money and your earnings on them tax free in retirement, when your tax bracket could be the same or higher than now.
- Stick with your plan by investing in an automatic fashion from each paycheck.
- Invest in a diversified portfolio of low cost index funds: domestic and foreign equities funds (90-100%) with the balance in bond funds. Revise asset allocation 10 years from now to start gliding it to a little more conservative mix.
- Rebalance to the asset allocation designed on a yearly basis.
Alina Parizianu, MBA, CFP®
This is unfortunately an unrealistic expectation. The answer it no, you can't. Your average long-term total return (dividends and capital appreciation) may be somewhere around 8%, but can't expect 10% just from dividends alone. In general, dividend paying companies are in the mature stage of their life cycle, at which point company earnings would not be as high as 10% year over year consistently. In any event, even if in some years they did have, the dividend payout ratio is never 100%. Also, dividends are not guaranteed by the companies. Just because they pay dividends in one year or that they have a history of paying dividends doesn't mean they will continue to pay it without interruption every quarter.
Your best bet would be to have a diversified portfolio that matches your risk tolerance and your goals.
Alina Parizianu, MBA, CFP®