How much emergency fund would have if you were us?

[disneysteve]

Fees are based on AUM.

NEVER EVER EVER would I do that. Total rip off 100% of the time.

I’d prefer to keep about $100-150k as our emergency fund

If that's what let's you sleep well at night, than that's the correct answer to the question. Don't let a sleazy salesman dictate how you handle your money.

When we discussed with the FA, he said it was fine to wait until we got pregnant

Let me guess. He doesn't sell insurance. If he did, I guarantee his advice would be different. There's no money in it for him so he's not going to recommend it.

May I ask why you feel you need to pay someone else to handle your money?

[jenn_jenn]

NEVER EVER EVER would I do that. Total rip off 100% of the time.


If that's what let's you sleep well at night, than that's the correct answer to the question. Don't let a sleazy salesman dictate how you handle your money.


Let me guess. He doesn't sell insurance. If he did, I guarantee his advice would be different. There's no money in it for him so he's not going to recommend it.

May I ask why you feel you need to pay someone else to handle your money?

Haha you’re right, he doesn’t sell insurance. I’ll be honest I was against having a financial advisor. I think I am more than competent and financially literate enough to be able to handle our money. I wouldn’t recommend it for most people. The TLDR version is because it is easier for my husband because of the administrative burden that any sort of investment strategy entails due to his job.

The more nuanced answer is my husband’s job is heavily regulated. As in, I can’t even receive RSU grants from my company, as part of my normal compensation, without having approval from his company. I can’t buy bonds without approval (because my husband has sooo much influence over the Fed ). Pretty much the only thing I can do is invest in our 401k. We have to provide monthly statements for all of our accounts on a regular basis. It is an undertaking…and my husband, while amazing at many things, is not interested or good at that level of red tape and paper work. It boils his blood. And unfortunately I can’t do it because I’m not the bank employee. However, the FA can. It’s a white glove service. I view it as enabling my husband to do his job and saves arguments from me being a “nagging” wife.

Supposedly there are other benefits as well but I don’t really understand them and I don’t think we’re at the level of wealth to really benefit from those services. Our FA’s typical client has $10M in AUM. We’re an exception and “got in” because of my husband’s network. I also think that even though we don’t have a sizable portfolio now (at least not anywhere near that level, we’ve only more recently become high earners), we eventually will be assuming our income stays high and we don’t go crazy with spending so they see our potential.

As much as I’d love to not have an FA and be able to do it on my own, it’s not changing while my husband does what he does for a living.

[disneysteve]

Ah, I forgot your story and the regulatory issue. That makes sense now.

[LivingAlmostLarge]

Sure why not? Looks like you live lean so why bother with more than $50k? I only carry now a $30k EF. But then I guess because of kork i started Ibonds and have about $120k in ibonds so i figure that's our real ef but it's nicely put away. I also do carry a pretty large property taxes, sink funds at any given time so i'm not sure that we only have "$30k" ef. I also have another $40k for next year's roth, ibonds, esa contributions.

Decided there was no point in a large ef when i started buying ibonds.

[srblanco7]

Seems as though you're looking at your EF needs as if you both lost employment at the same time. Perhaps that's a low likelihood event - which may affect the calculus?

That being said, you make an amazing income, are financially literate, and capable of making your own decisions. Your EF should be whatever allows you to sleep at night (said a different way, your FA is an Advisor - weigh their input and make your own decision).

[jenn_jenn]

Really appreciate everyone’s advice so thank you all! It is really helpful to have a sounding board of reason from this community.