Patrick Traverse, founder of MoneyCoach, decided to get into financial services after an 18-year professional hockey career. His journey to his new career started as a young investor during his early twenties as he became frustrated with the type of help he was getting from his advisors. He felt compelled to learn on his own about everything he needed to know to make proper financial decisions. His new passion for the intricacies of the markets and personal finance pushed him to choose financial planning as a second career.
Patrick and his team know that clients are busy with their life and sometimes feel they don’t have the time to get to learn everything they need to know. Patrick thinks it is important that he advises his clients on every facet of their financial life. He feels that every piece plays hand in hand with each other and if an area of their finances is neglected, it could mean that their whole life plan could come down crashing.
After more than 4 years in the business, Patrick founded MoneyCoach in 2016. He uses his experience as a top-level athlete to help his clients become financially successful. He feels that the most important missing component that most investors do not have is accountability. By being their financial coach, Patrick guides his clients to control their money. Not that money is everything, but so much of our lives depends on how we manage money!
Organizational Leadership, Quinnipiac University
Assets Under Management:
MoneyCoach LLC and/or Patrick Traverse offer Investment advisory and financial planning services through Belpointe Asset Management, LLC, 125 Greenwich Avenue, Greenwich, CT 06830 (“Belpointe), an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC should not be construed to imply that the SEC has approved or endorsed qualifications or the services Belpointe Asset Management offers, or that or its personnel possess a particular level of skill, expertise or training. Insurance products are offered through Belpointe Insurance, LLC and Belpointe Specialty Insurance, LLC. MoneyCoach LLC is not affiliated with Belpointe Asset Management, LLC. Additional information about Belpointe Asset Management is available on the SEC’s website at www.adviserinfo.sec.gov.
Patrick Traverse Investopedia Interview
It depends. What you want to avoid is a tax cost. Is this a Non-Qualified Annuity? If so, find out what your first investment was and what your account grew to. Those gains would be taxed as ordinary income plus a 10% penalty if you are under the age of 59.5. If your gains are substantial, you might want to research annuity companies. Some of them have products that are stripped down to any unecessary expensive benefits you might need which reduce the cost substantially.
If your annuity is within an IRA, then there are no cost to transferring to another custodian and buying mutual funds.
I hope this helps.
529 plans do restrict how the money can be used but they also offer the benefit of tax-free growth. (BTW, a new benefit from the 2018 tax reform: 529 plans can be used for pre-college tuition as well). My advice is to diversify your contributions, you might still want to use 529s but maybe only for a portion of the money.
If you wanted to use a different type of account, an option is to open UGMA/UTMA for your child with you as the custodian. Your child would pay next to no taxes up to $2100 of gains/income over that amount the gains at taxed at the custodian's tax bracket. Also, the child would take ownership at the age of 18/21 depending on the state, which can be troublesome.
I also like the idea of using a Roth IRA. If you own a business, you could "hire" your child if he/she can help the business a little. You could match/use the income to fund the account. The benefit is tax free growth and the contributions can be taken out without penalty. You can also use this approach once the child is old enough to work.
I think the best is always to diversify. Using these 3 ideas might help you get the best of all choices...
As for where/what to invest into. Most major brokerage companies have Commission-free ETFs, as long as you don't trade them. If you plan to buy and hold for the long-term, this is a great way to go. Here's an article about this: https://www.stockinvestor.com/24145/5-brokerages-can-trade-etfs-free/
I hope this helps.
It depends of what your goals are. You shouldn't compare to others as you might want something that out of the norm. Many young adults these days are trying to find financial freedom early in life. Many of these people are trying to save more than half of their take home pay, but if you have a normal goal to be able to work until 65 and live a comfortable life while you're working and in retirement, here's a few of the metrics that you can follow:
- You should try to save 15% of your before-tax income. Use different types of accounts (401k, Roth, Individual) to get different benefits. If you are diversified that way, you should be able to have money for whatever life throws at you.
- Try to maintain to housing expenses to no more than 25% of your net income. This includes rent or mortgage payment, insurance on your home and real estate taxes. This should make sure you are not house poor.
- Maintain your committed expenses below a max of 60% of your net income (And that is the ultimate max!!!) These expenses include your housing expenses and any other bills you get on a regular basis. Your goal should be to lower this amount as you pay down debt and earn more.
- Lastly, you should have about 20% of your net income to spend on your lifestyle expenses. This is anything that makes your life more enjoyable (restaurant, clothes, trips, entertainment...) As your other expenses are lowered compared to your net income and you are staying on track to reach your investment goals, you should be able to spend more of your income on lifestyle expenses. Which is what it should be about.
You should be proud of yourself! At the age of 22, you are light years ahead of most people your age. If you put together a budget plan like I just demonstrated for you, you will be successful at controlling your money. You will make money a key to more freedom instead of having it become a source of stress in your life.
I hope this helps.
When I create a financial and investment plan for somebody, I help them figure out when they will need money in the future. That should also be your first step. Because you are going to college next year, you will probably need most of that money soon. Here's the break down of how I would create am investment plan:
- Money you will need within the next year and your emergency fund (which should be 3 months worth of expenses) should be held in cash or cash-like investments. This money needs to be safe and liquid.
- Anything you need in 1 to 3 years should be invested conservatively. Short-term bond funds can be a good example of a conservative investment. It should earn you about 3-4% a year without much volatility.
- Your 4-7 year goals can be invested in a moderate risk portfolio.
- Anything longer than that can have more exposure to stocks.
You get the point. Before you think about what to invest in, prepare your financial plan. This should guide you into how to invest the money.
I hope this helps.
Here's information that you need to evaluate before taking money out of your 401k to pay down credit card debt:
- First, you will need to pay taxes on the withdrawal. Unless it is a Roth 401k, you contribute to your account before your income was taxed, therefore taxes will need to be paid as you take it out.
- If you're under the age of 59.5, you will incur a 10%.
- Altogether, depending on your income, this could mean a large amount of money that would be paid to accompliash your goals. If you pay an average of 25% between Federal and State taxes plus you are under the age of 59.5 years old, that would mean you need to take out more than $38,000 to get $25,000 net.
- Look at all your options before doing that. Take advice from your trusted advisors.
But, the most important advice that I can give you is before you do anything. You should take a look at your spending habits. You should take action to fix that before you decide on a payment plan. Most people that use a quick fix on their debt problem, normally dig themwelsves a bigger hole by getting back into consumer debt. Take a look at what got you there in the first place.
I hope this helps.