November 24, 2020

Ep. 387: “Hold Tight. See How Things Play Out…”

40 minutes

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On this episode of the Pete the Planner Show, Peter and Damian remind everyone that the upcoming holidays are not cancelled; we just need to look at them differently, with safety being a priority. FEATURED CONVO: Will Student Loan Forgiveness plans continue with the new federal administration?

REMINDER: Try HEY MONEY, your new secret weapon for advice in your personal finances.

No time to listen? BUMMER. Here’s some of what happened:

Show Notes:

Mailbag Question 1:

“I’m in Indiana. What is a reasonable fee for a fee-only advisor? What services should I expect? I’ve seen $600 for a retirement readiness assessment, and I’ve seen $1200/year fees. What’s reasonable?”

Damian: Let’s compare this to the percentage of the assets managed. I’ve seen all the way up to 2%. This flat-fee idea is gaining traction. What to expect? It depends. A bigger portfolio or on-going relationship is likely going to cost more. Ask yourself ‘what do you need?’ The advisor should essentially keep you from doing something foolish in the long term.

Pete: There could be some real confusion here. $125 – $300 per hour sounds reasonable to talk through your financial strategies. Also, use Hey Money, for everything else once you’ve got your investments figured out. (Hint: Use the offer code “RADIO”)

Mailbag Question 2:

“My wife and I are plotting out our financial goals for 2021, but hit a snag on deciding our theme for the year. Our incomes are north of $350K, or about $17K per month. We both contribute more than 10% to our 401(k)s. We don’t have kids and live in a modest house. We have a savings account with $80K in it we kick into every month; it’s higher than normal. Our debt is our mortgage and med school loans. Should we use the excess cash and pay down our mortgage or invest into the S&P500?“

Damian: I think they should wait and keep doing what you’re doing. Watch the incoming administration. Especially with regard to student loans. Does your wife qualify for PSLF (Public Service Student Loan Forgiveness)?

Pete: I agree. They need more time. Maybe consider stopping saving so aggressively?

There’s a full, entertaining conversation in here! Get the full answers to this more — click PLAY below for the full show.

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