| Should I hire a financial planner? |
|
|
|
|
|
carlisle
New Poster
Cash: $ 0.45
Posts: 2
Joined: 14 Jul 2007
|
| Should I hire a financial planner? |
 |
|
This is my situation. I am considering hiring an expert to assist my parents (in their 60s) in budgeting their monthly income and expenses.
It consists of 2 pensions, social security for each and disability to my mother. My father works a part-time job during the school year.
Thus, there is considerably more money coming in for 9 months of the year and a lot less 3 months. The need is to either create a special account where a set amount gets funneled in during the 9 months of school or education on how to make all the income stretch as equally as possible throughout the year.
It affects me in that I am not putting as much into my 401K as I should. I am not saving as much as I should. I am afraid to pay my bills except for the rent & car. Why? I'll be damned if I pay something and they call to borrow money from me for whatever reason. Or I have a check floating and forget about it when I give them money-thus the check bounces.
How should I handle this situation?
Carlisle
|
Sat Jul 14, 2007 2:57 pm |
|
|
efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
|
It is one thing if they have savings or investments that they are trying to handle wisely for the next 20 or 30 yrs. But if they have no savings or investments, it should not take a paid financial advisor to tell them that he needs to put at least 1/3rd of his after tax work income (plus other expenses due in non-working quarter) into a high interest savings account or money market (earning ~5% interest) to cover the other 1/4 of the year. In reality they should save as much as absolutely possible, because inflation will reduce their effective "fixed" income in later years.
But many older people are not internet aware and do not trust electronic funds transfer, so they may not know of savings options beyond their local bank. My boss is going on 60 and he does not even trust a debit card or ATM machine (cashes a small check almost every day).
|
|
Sun Jul 15, 2007 6:03 pm |
|
|
austin
Contributing Member
Cash: $ 7.20
Posts: 36
Joined: 29 Jun 2007
Location: Austin
|
| savings |
|
|
I would not avoid savings because of your parents. Just because you are saving doesnt mean you have to tell everyone that you are saving.
Its a tricky situation telling people what to do with their finances. You could get them a financial advisor. On the other hand you could simply set up a savings plan for them. If they talk about money problems you can ask them if the savings plan is not working and maybe it needs to be adjusted instead of offering money.
I dont know this might not work out I dont know the people involved in the situation.
|
|
Tue Jul 17, 2007 5:31 am |
|
|
carlisle
New Poster
Cash: $ 0.45
Posts: 2
Joined: 14 Jul 2007
|
| Thanks |
|
|
Thank you all for your responses
I am concerned because they are on verge of having to file for bankruptcy. I am trying any and all means to help them without having to resort to that.
I have expressed my concerns. If they don't change their ways soon and control the unnecessary expenses, then I feel that I have no choice but to have someone come in and teach them.
Carlisle
|
|
Wed Jul 18, 2007 1:23 am |
|
|
Case-Face
Full Member
Cash: $ 0.35
Posts: 75
Joined: 21 May 2007
|
| parents |
|
|
They are your parents, so of course you're concerned. Do you research in getting a reasonably-priced, competent advisor to help them. But don't take away from what you want to save. You'll find a way.
|
|
Thu Jul 19, 2007 3:42 pm |
|
|
more freedom
Full Member
Cash: $ 16.20
Posts: 80
Joined: 12 Jul 2006
|
Have you thoguht of starting to read some financial books?
They are many bad financial planners out there, so having some financial or money knowledge can protect yourself.
You can read books by Robert Kiyosaki, Robert Allen, or Warren Buffett.
Hope this helps
|
|
Sat Aug 18, 2007 3:05 pm |
|
|
Fern123
Member
Cash: $ 2.40
Posts: 12
Joined: 28 Jun 2007
|
Why is "More Freedom" pitching the same author and the same anti-401k stance in every post i read? This person obviously has a hidden agenda.
|
|
Mon Aug 20, 2007 8:38 pm |
|
|
BlankenshipFP
Money Talk Advisor
Cash: $ 79.56
Posts: 390
Joined: 05 Oct 2004
Location: Illinois
|
quote:
Originally posted by Fern123
This person obviously has a hidden agenda.
It doesn't seem to be hidden... 
Jim Blankenship, CFP�, EA
Blankenship Financial Planning, Ltd.
www.BlankenshipFinancial.com
Standard IRS Circular 230 Notice Applies
|
|
Tue Aug 21, 2007 1:28 pm |
|
|
Fred42
New Member
Cash: $ 0.60
Posts: 3
Joined: 13 Sep 2007
|
One way to save money is to look for a cheaper health insurance plan, I know in my case I needed a way to save some extra money so I delved into areas where I could scrape up a few dollars. And found i could save a lot.
[deleted]
|
|
Thu Sep 13, 2007 11:59 pm |
|
|
Apollo
Senior Member
Cash: $ 73.85
Posts: 360
Joined: 10 Sep 2007
Location: New York
|
| Re: Should I hire a financial planner? |
|
|
Dear carlisle,
they are your parents so it is normal that you are concerned but to take away from your savings to help your parents is just a short-term fix and obviously won't solve the problem and it is a bad financial move on you part.
If nothing else works you may want to consider a financial expert but be carefull as there are many out there who are not worth the fees that they charge and in many cases you can find their advice for free if you do your research.
Here are a few suggestions which may help you to help your parents:
1. You mentioned that your father works part-time for 9 months. I would suggest to open a money market account and to set-up an automatic transfer every month into that account. I would recommend that your dad transfers 1/3 of his income during those 9 months into that money market account. Do an automatic transfer if possible so that your parents won't spend that money during those 9 months.
A money market account is a very safe and very liquid investment. Most if not all banks should offer such an account. It is ideal to 'park' money temporarily in those accounts.
2. Look at the expenses of your parents. There could be unnecessary expenses which they currently pay for and some may be eliminated.
3. Look at what type of services your parents currently are signed up for. Anything from TV to telephone, from healthcare to power bills. I assume that they have signed up a long time ago and there could be better 'deals' out there which could additionally safe your parents some money.
4. I haven't done this myself but I've heard from other people that it workr: There are many small things like new power efficent light bulps which safe up to 90% of energy costs in regards to old light bulps to shower heads which decrease water usage by up to 75% by adding more oxygen to the waterflow that will safe on bills on an annual base.
There are mayn things that can be done. Do some research on that topic. I would use the financial planner as a last resort.
Hope this helps a little.
It is not smart to play it safe but it is safe to play it smart.
|
|
Fri Sep 14, 2007 9:47 pm |
|
|
|
