just some simple, basic financial advice needed...

[rbracch]

Hi there,

How are ya. I was wondering if someone could advise me on the following situation – I’m looking for a financial advisor to advise me on how to most effectively invest and allocate my money. I’m middle class and don’t make a ton of money, but I want to make sure that the money that I do make is “working” for me. Here are some of the issues that I would like advice about:

1.) How to most effectively contribute to my 401k and 403b in comparison to my monthly salary.

2.) How to most effectively adjust my tax withholdings.

….someone suggested that I meet with a financial advisor from a company called Ameriprise. What are his incentives to meet with me? Does he make a profit from a one-time consultation fee? Or, from requiring that I invest some of my money with him? To be honest, I think I’d prefer just paying someone a one-time fee on a “per consultation” basis. The details of my financial situation are pretty straightforward – I think it would only take one or two meetings to come up with a solid financial plan.

Thanks so much,
rbracch

[jpg7n16]

You should probably look into a fee-only planner in your area. I'd suggest looking at this site: Home Page - NAPFA - The National Association of Personal Financial Advisors

I'd also suggest working with a CFP.

This is one of the descriptions from the Dallas, TX search:

"We are an independent, fee-only, hourly financial planning firm. We are in the business of helping our clients solve financial issues. We offer hourly, financial coaching to full scale financial plans. A typical engagement can last anywhere from one hour (for example: if we are discussing paying for college and trying to navigate financial aid) to 25 hours (for a long-term comprehensive plan) depending on an individual's needs. We also offer QuickBooks set-up and accounting services for small businesses. "

That sounds like what you are looking for.

[jpg7n16]

Of course you can also get some help here for free:

as far as withholdings goes, use the calculator at irs.gov (IRS Withholding Calculator)

for portfolio allocation, we'd need some more specifics about your risk tolerance, age, financial situation, and all

or use a simplified calculator like: Forbes: Asset Allocation Calculator as an estimate

[jIM_Ohio]

You need tax help, and I would not go to Ameriprise for tax help

but I want to make sure that the money that I do make is “working” for me. Here are some of the issues that I would like advice about:

1.) How to most effectively contribute to my 401k and 403b in comparison to my monthly salary.

2.) How to most effectively adjust my tax withholdings.

Let me add a few questions to ask someone
1) can they tell you what tax bracket you are in?
2) based on your salary can they estimate your tax liability?

401k and 403b choices suggest there are two people working? If it's one person, you want a tax advisor first, investment adviser second.

[snafu]

You are smart to want to create a financial plan. If you can tolerate some light reading, I suggest you look at Wealthy Barber and Financial Planning for Dummies [no insult, famous Yellow book series] for easy to understand platform.

[rbracch]

Hi again,

To jpg7n16, jIM_Ohio and snafu - thanks so, so much for your quick and informative replies. At least I now have a starting point. Very generous of you guys to provide us newcomers with some feedback.

Have a great weekend,
rbracch

[feh]

I agree w/ others - don't go to somebody that works for a financial services firm, such as Ameriprise. They are incented to sell you things, not give the best financial advise.