Wolk Financial Management
Evan Wolk, Managing Director of Wolk Financial Management, Inc. has over 27 years’ experience in the financial services industry. Prior to founding WFM, Evan worked for Smith Barney in Boca Raton where he provided his clients a broad range of financial services including the development of investment strategies and the implementation of comprehensive financial plans. His experience includes equities, 529s, fixed income, managed funds, insurance and retirement planning. As a financial advisor and independent contractor with KMS Financial Services, Inc., Evan is not tied to a specific company's products or required to use proprietary funds; he has the freedom to align his clients’ needs with the most appropriate products. Additionally, he holds the Chartered Retirement Planning Counselor designation.
Throughout his years of service, Evan has identified two primary needs facing his clients today, retirement planning and education planning. Quite often, these issues are intertwined. Evan is able to see “the big picture” and understands that decisions involving both areas cannot be made in a vacuum. He is known for his ability to ask the right questions and assist his clients in developing a plan to achieve their goals.
Prior to moving to South Florida in 2002, Evan was a Vice President in the Securities LendingDepartment of J.P. Morgan (formally chase Manhattan/Chemical Bank) where he was responsible for the sales and trading of a $100 billion highly successful diversified securities lending program. He also spent four years with Yasuda Bank and Trust Company (U.S.A) where he served as the investment manager of the securities lending department.
While attending The George Washington University in Washington, D.C., (where he earned a B.A. in International Affairs with a concentration in International Economics) Evan worked for the United States Department of State where he served as an Intelligence Operations Specialist responsible for preparing the daily classified morning summary of intelligence reports for the Secretary of State.
Since relocating to South Florida, Evan has become an active member of the community consulting the City of Parkland on their Police Officer Defined Benefit Plan. He currently serves as the Chairman of the Parkland Chamber of Commerce where he has been an active member for over twelve years.
BA, International Affairs, The George Washington University
Assets Under Management:
Securities and advisory services offered by Evan Wolk through KMS Financial Services, Inc., Member FINRA, SIPC. Evan is currently licensed in the following states: CA, CO, CT, FL, MA, NJ, NY, VA and WI.
Evan Wolk Investopedia
This is a very complicated and personal discussion involving you and your family. Instead of focusing on just your age yothe u should take in to account many factors including (but not limited to): the income needs of your family if you were to pass away, the income needs of your family if your spouse were to pass away, child care needs if the primary caregiver of your children were to pass away, the type and amount of insurance for each member of your family, health issues and family medical history.
Life insrance products can be extremely complicated and expensive or more simple and less expensive, each person and family needs to find the correct fit for them and thier dynamic.
I suggest you consult a financial planner who can look at your whole fincancial situation and make recomendations that fit with your complete situation.
This is a very personal and specific question based on your family dynamic which includes a great number of variables. While $2.3 million today seems like a great deal of money (and it is) you have to account for your (and your spouse's) life expectancy and potential changes to how you plan intend to live during what may be a very long retirement. Also, do not forget about potential increased healthcare costs as today's uncertainty and projected longevity makes future healtcare expenses extremely difficult to predict.
It likely makes sense for you to work with a financial planner who can model expected returns and expected cash flows both until and after retirement to determine if your projected asset base will accomodate the lifestyle you expect. It may certainly be possible for you to retire at the relatively young age of 60, but that will greatly depend on the lifestyle you intend to live during what may be 30 or 40 (or more) year retirement.
Planning for future college expenses (tuition, room, board, books, etc.) is a complex process that shoudl taken to account more than just concerns about tax. How old are your children, do they know what type of school they plan on attending, and what is your overall financial situation are just some of the critical questions that need to be looked at when making these decisions. If you have a successful student and your asset base and income are not very high (relatively) and your student wishes to go to a private school there are many schools that may offer need based scholarships that may be negatively effected by some common and popular forms of college planning vehicles. If you are a relatively high earner with substantial assets it may make sense to look at what are called 529 plans. These are state s state sponsored plans that allow contributions to grow tax deffered and eventually withdrawn tax free (income and capital gain) if used for a qualified higher education expense. Many states also offer various forms of pre-payment plans which lock in current costs and are generally tax friendly but may cause signifigant financial gaps if the student ends up not going to an "in-state" public school.
The main point of emphasis is the question, as you ask is very complicated and requires a look at your overall situation and what are the hopes and desires of your student. Often times different children in the same family are benefited by different solutions.
I believe that it is virtually inpossible to accurately "time" the market and that for someone of your general age time in the market will certainly be on your side. There are, however, other considerations than just your age. Do you anticipate needing the money you would be currently investing in the near future (buying a house, wedding, children, etc.)? If so, the time frame for your investment would be different. Also, what is your risk tolerance? If the market were to correct will it cause you to sell or to hang on? The history of the market tells us that the US equity market is a great place to grow wealth over time, if you had invested at recent past market peaks (before the 1987 crash, the 2000 tech buble burst, or the 2008 banking crises) and held on to diverse US equity holdings you would be fine.
In summation, I recomend you consider your risk tolerance and actual time frame for potential need of these funds and invets accordingly. If you are aggressive and will not need these funds for at least 10 or more years then an aggressive US equity allocation is likely warranted. Understand, at your age it is likely you will see perhaps as many as 5 to 8 major market corrections in your lifetime. Understand these events are normal though painful and unpredictable. If you know and understand corrections are part of investing you will be better prepared to manage through the inevitable.
I like your thought process and think you are on the correct general path. Please let me explain 2 related but broadly misunderstood portfolio contruction issues.
The first is something I woudl refer to as "overlap" where someone buys many different individual stocks or ETFs or mutual funds (or any combination of all) but hold similar startegies. For example, if you were to buy (for example) AAPL, FB, AMZN and MSFT and then also buy QQQ and then an aggressive technology mutual fund you would own a number of different holdings but the underlying market exposure would very concentrated. Even though a statment of this type of account would "look" diversified it would be anything except that.
The other issue is one in which people can "overdiversify." I think this is a much rarer issue when an investor may spread out investments among so many different asset classes, including (and expecially) short exposures (go up when the market goes down) that fees and expenses are taken in to account the account can't make very much in any market condition.
My advice is to either research some of the on line available market analytical tools that can look through the holdings of funds, ETFs and include individual stocks so you can determine what your true allocation or find a professional manager who can assist you.
It may be of additional assistance to you to determine how you wish your allocations to segregated. Some people prefer to classify equities in to Large Cap/Mid Cap/Small Cap with further breakdown between growth and value. Other prefer to concentrate on sectors.
Additionally, be advised that diversification does not protect against losses related to systemic risk - they only provide some hedge against risks associated with overconcentration in a specific investment or asset class.