W. Swartz & Co.
Owner and primary Investment Adviser
Wyatt Swartz is the Owner and primary Investment Adviser at W. Swartz & Co.W. Swartz & Co. is a Registered Investment Adviser (RIA) firm. Wyatt's previous experience includes Merrill Lynch, Renaissance Financial, and Fisher Investments. Wyatt has a passion for portfolio management, financial planning, capital markets and economics. He loves working with retirees, non-profits, small businesses, and individuals accumulating for retirement. Transparency is incredibly important to Wyatt and his team. He believes in straight-talk and simplicity. He believes clients should understand their financial plan and the basics of the investment process used by their adviser.
Wyatt believes in education for himself as an adviser and his clients. He believes that educated clients are successful investors and satisfied clients. Wyatt knows that good portfolio management is not about complexity, but about using simplistic proven strategies. Unlike many advisers, Wyatt does not speak in a manner that confuses his clients. He takes pride in explaining things in a way that clients can understand. Investor success will primarily be determined by their asset allocation: their mix of stocks, bonds and cash. Too often investors have the wrong asset allocation based on their goals, time horizon, and cash flow needs.
Wyatt was born & raised in Washington MO (St. Louis area). Wyatt is a big sports fan, rooting for Mizzou athletics and St. Louis sports teams. His hobbies include recreational sports, water/snow skiing and trap shooting. Wyatt is an active member of Toastmasters Club 5585, Elks Lodge 1559, St. Paul’s United Church of Christ (Marthasville MO) and the St. Louis Discussion Club.
BS, Business Administration, University of Missouri – Columbia
BA, History, University of Missouri – Columbia
If your goal is to put the absolute most possible into tax-advantaged retirement accounts each year then a solo - 401(k) will be your best option. A SEP IRA will be your second best option and depending on a number of other circumstances should be considered.
Two more things to consider:
1. If you all do not have additional pre-tax/traditional IRAs you and your wife should make non-deductible maximum contributions to IRAs, and then convert them to Roth IRAs. Taking a few additional steps to max out Roth IRAs.
2. Also a unique idea you might consider woudl be making maximum contributions to your SEP IRA and converting it to a Roth each year. There by getting to contribute way more than the standard $5,500 per person Roth limits.
4.5% is not unusual for mutual funds, however I would never recommend buying a fund with such a high load charge. There are many mutual funds that have no load charges to choose from, or which have an option to waive the load under certain circumstances.
If your adviser suggests a mutual fund with a high front load charge, I recommend that you ask them the following two questions.1) How does the load charge on this mutual fund impact your compensation? 2) Wouldn’t it be in my best interest to invest in a mutual fund that does not charge a frontload percentage?
Advisers that recommend frontloaded mutual funds to their clients tend to be Registered Representatives (brokers) paid on commissions/transactions. Registered Representatives are not legally obligated to make recommendations they believe are in their client’s best interest. Registered Representatives are legally obligated to make recommendations which are suitable for their clients.
I recommend investors seek out Investment Advisers operating through an RIA (Registered Investment Advisory), because they are fiduciaries to their clients. As fiduciaries Investment Advisers are legally obligated to make recommendations they believe to be in their client’s best interest.
Yes! Yes you should. If you can knock out all your credit card debt in one move you should do it. It is so incredibly important that once the debt is gone you reform your habits and budget, budget, budget, and start saving and living within your means or you will simply rack up credit card debt again and be back in the same position down the road. Based on the little bit of detail you provided you should probably cut up all your credit cards after you pay them off, and certainly you should stop using them completely. You should budget out how much you will save and spend monthly and make the savings automatic. Example: say you bring home $5,000 per month and you have determined that you have $1,200 in fixed living expenses and have budgetted out that you will spend another $1,000 a month in additional expenditures, and $3,000 in savings/investment. Have the $3,000 in savings/investment immediately/automatically electronically go to the appropriate accounts so that you are forced to stay within your planned budget.
No you will not pay $2,500 a year of interest. As you pay off the loan the principal (in this case $50,000) decreases. The amount of interest you pay is determined by the principal remaining on the loan. Therefore in the early years of paying off a loan more interest is being paid and in the later years less is being paid.
Example: If in the first payment you paid $5,000 towards the loan, then $2,500 would pay down the principal and $2,500 ($50,000 x 5%) would be interest. This would result in a decrease in principal owed to $47,500. If the next payment was $5,000 then $2,625 would go towards principal and $2,375 of the payment would be interest ($47,500 x 5%).
Yes, you should roll over your employer retirement plan into an IRA. There are a few exceptions depending on the circumstances, which I am not going to go into at this time.
The plan representative you spoke to likely told you to not roll your assets into an IRA because it is in the best interest of their firm. Typically, employer retirement plans such as 401(k) plans are administered by financial institutions that charge a percentage fee based on the asset size of the overall plan. Therefore, it is in the best interest of the representative and his/her firm for assets to remain in the plan. Therefore, keeping your assets with them would be in the representative’s best interests and not necessarily yours.
The representative’s point about the market being low in 2007/08 has no relevance in determining if your retirement assets are better held within a former employer’s retirement plan or held in an IRA.
If you roll your funds to an IRA, you are not losing the 5.1% gains that your assets have already experienced.
When you invest your money in an IRA, the account is in your possession. IRAs are not held to the same rules and restrictions that 401(k)s are. This means that you have fewer restrictions on the access to, and management, of your assets. An IRA typically allows for a much broader selection of investment choices, and freedom to choose what financial institution to custody the assets with. With an IRA, you have the option to choose a financial institution that has very low maintenance fees.