Integrity Advisory, LLC
As a Financial Advisor at Integrity Advisory, LLC Matt Ahrens is focused on helping business professionals simplify their financial lives and find financial security as they face life's everyday challenges.
Since joining the firm in 2015 as a financial advisor, Matt has overseen the investment management and portfolio construction process for our clients. During this time, he earned the Certified Investment Management Analyst® designation which included an extensive class on portfolio design at the prestigious Wharton School of the University of Pennsylvania. Matt specializes in assisting physicians, small business owners, and young entrepreneurs who often find themselves with little time to manage their own investments.
Matt and his team help their clients track all of their investments in one centralized location and use the information to make sure they can retire when they want to and how they want to.
BS, Accounting, Washburn University
Assets Under Management:
Matt Ahrens Investopedia Advisor
If you enjoy the people you work with and feel yur employer is fair then I wouldn't have concerns about dedicating two years to them. It would save you from paying extra for classes that it sounds like you believe would advance your career opportunities. I think you will find that you get to a point where your hard work and professional network do more for you than degrees, but at 22 I think a free degree sounds like a great deal.
Good luck to you and congrats on having a path set up for yourself!
Great question, and I have a few younger clients in the same boat as you. In today's market it's tough to safely earn more. Bonds are at risk with interest rates moving higher, and equities have been very volatile lately. There is a possibility that home prices will depreciate or at least slow their rate of appreciation, but depreciation will take a couple of years or more. You could look at some lower volatile ETFs like CDC or SPLV, but again your principal will be at risk. If you do look to invest then consider the Robinhood app, because you're using a taxable account and they don't charge you transaction fees which will be helpful.
You could also consider paying your PMI up front. When doing this there is an assumption that home rates will continue to rise at current rates and the bank calculates how long you would be paying PMI until you have 20% equity.
Sorry I couldn't be more help, but good luck to you!
Matt Ahrens, CIMA®
Great question, and great job on getting debt free so soon. We typically suggest having in your retirement account the equivalent of one year's salary by the time you're 30. From that perspective you're a little behind, and that's likely because you focused on paying off debt. I see you're going to be putting 15% away as soon as you can, but I might suggest putting some money in a Roth IRA account while you wait. I'm 34, and love that the Roth grows tax free so many years, and that tax free bucket will give you flexibility in retirement.
Again, you're doing great. I don't necessarily have a problem with you buying a home with rates low (although home prices have increased significantly in recent years). I bought a house when I was single, and there are more expenses that pop up unexpectedly when you're the home owner. I would just make sure you don't sacrifice that 15% contribution amount to buy the home.
Good luck to you,
Matt Ahrens, CIMA®
Great question, and it sounds like it was a group annuity 401(k) or 403(b) plan. Those typically have higher fees, and yes I think you're on the right path by rolling it over to an IRA account. When you mention she would be eligible to withdraw the funds in a couple of months I am guessing you mean that your wife will be 59 1/2 in a couple of months. Remember withdrawals from a pre-tax account are taxable as ordinary income, but after 59 1/2 avoids the 10% early distribution penalty. Rolling to an IRA does not create a tax liability itself, just the withdrawal of those funds to you would do that.
I hope that helps, but feel free to ask further questions.
Matt Ahrens, CIMA®
Great question, and kudos to you for being serious about budgeting, reducing debt, and investing in your future. You have a low rate on your mortgage, and not having a mortgage is certainly a great goal . I would fill up other buckets before making extra payments on your mortgage, however.
1. Emergency savings (guessing you have this one covered)
2. 401(k) savings to maximize employer match
3. Payments on high interest loans charging over 6% interest (doesn't sound like an issue for you)
4. Contributing to an HSA if eligible
5. 401(k) savings up to the maximum contribution of $18,500 per year. Given your age you may consider a Roth 401(k) if it's available.
6. Additional payments on low interest loans like your mortgage.
7. IRA or Roth IRA contributions if eligible
8. Taxable accounts
Again, you're doing great in making this a focus so early in your life. Hopefully this list can provide you some guidance on where extra cash should go. Not that you would have done this, but I have seen young professionals make a great effort to pay off their mortgage only to turn around and decide they can now afford a bigger house. Now they have a mortgage again and still haven't made retirement savings a priority. It sounds like you have your stuff together, but this is a trap that people have fallen into.
Hope that helps, please let me know if you have further questions.
Matt Ahrens, CIMA®