What type of Financial Planning do you use?

Question

Besides a really good CPA with real estate investing knowledge, what type of Financial Planning do you use?  We like to keep a certain amount of investments outside of real estate, but are having difficulty determining what is a good complement to our real estate investing ventures.

Scott Jensen · Answer

Full disclosure. I AM a financial advisor. ;-)

If you're not sure whether you need a financial advisor, I would recommend meeting with a financial advisor that does work on a fee basis (hourly or project based) and have them take a look at your situation and let you know your options. Make sure you go with someone that is a fiduciary and is very transparent about their pricing...and probably stay away from insurance companies. You want a financial planner, not an insurance person who "does" financial planning.

Paul Allen · Answer

Also a Financial Advisor...

You can do-it-yourself without 'winging it'.  Check out bogleheads.org

Best of Luck with Your Investing!

Alexander Gondolfi · Answer

@Michaele Arneson

It’s all about diversifying your income streams and where your money is. Personally, I contribute to my 401k up to the match, fund my Roth IRA up to the max, and I also have a taxable account which I plan to do a little dividend investing to get some side money coming in. Once the rentals are making good money, I’ll be building a fund to invest in notes or syndications. The goal being that i can quit my 9-5 when I’ll be getting income from 3 sources: rental income, note/syndication income, and dividend income.

As far as where to put that money, my 401k doesn’t have the greatest options, so that’s just in a S&P 500 fund. My Roth IRA is split between 4 ETFs that give me broad market coverage. My dividend account is invested in single company stocks (mostly dividend aristocrats).

It should be noted that I am not a financial planner. Just a guy 2 months away from graduating college with a degree in finance, but still working full time. Above is simply the financial plan I’ve decided for myself.

Chris Coleman · Answer

@Michaele Arneson

Are you diversified within your real estate investments?  By diversity, I mean are you invested in various sectors of RE, such as single-family, multi-family, paper, etc? I view this a one way to supplement.

Once I built up a good amount of SFR assets, I then started investing in apartment syndications.  And then Notes.

It’s all within the real estate industry, but different sectors that supplement each other.

Michaele Arneson · Answer

@Scott Jensen, oh, haha! Thanks for the suggestions!

Michaele Arneson · Answer

@Scott Jensen, do you use an "advisor" per se, to give you direction to your other investing, or just wing it? We've been "just winging it," but I'm wondering if we should be more directed.

Scott Jensen · Answer

It really depends on the person and their situation. In addition to real estate, I utilize my 401(k) at work to get the employer match,  I have Roth IRA accounts to have tax free growth, and a high yield savings for short term money.

What type of Financial Planning do you use?

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