We don't have any credit card debt, our cars are paid for, we have a modest mortgage relative to our income, and a lot of excess cash flow. While I know that this is a good problem to have, I'm not confident that I know where I should be putting the extra cash.
Are there any books or resources geared towards upper-middle income people?Where can a high income earner get solid financial advice?
If I were you (and I almost am) - I would start with some basic financial advising books. If you have already done this - then you should move to the next level but if not:
Buy ';The Only Investment Guide You'll Ever Need'; by Andrew Tobias. He also has a website.
Go to ';Bob Brinker's Money Talk'; website and look at the books he suggests.
Listen to Bob Brinker's ';Money Talk'; radio program found in many radio markets.
Bob Brinker suggests and recommends that people can and should become their own financial advisors.
His radio show on Saturday and Sunday evenings can be a bit hard for beginners - give it several weeks before you either give up listening or before you become hooked.
Contact Mutual Fund companies like Vanguard and Fidelity which are lower to no fee and low management fee account mutual fund companies.
If you are looking to make a ';killing'; because you have surplus income it is likely you will be cheated someday so be very careful if you hear about ';secrets'; and ';methods'; to outperform the stock market.
Consider taking course leading to a CFP designation - Certified Financial Planner (look it up on Google). This way you will have knowledge when you consult with advisors and knowledge is power.
I do not do this for a living - I just like to help people.
personaz1@hotmail.comWhere can a high income earner get solid financial advice?
I just came across this website that gives some great advice on financial issues: http://www.hansoverturf.com. Check it out, I know it helped me.
First, I would read the books recommended above. Even if you have the world's greatest financial advisor, you still need to have an understanding of markets and financial planning.
You should also get a financial plan prepared by someone who charges a fee to do it, even though you said it's not an option. Heck, we got one when our income was a fraction of yours. We paid about $500 to get a financial plan prepared and we had no further obligation to the planner. With that plan, and the knowledge I picked up by doing my own reading, we implemented the plan on our own using Vanguard mutual funds. Please understand that getting a financial plan done could be the best money you've ever spent. You can't afford NOT to do it. I know it was probably the best money I ever spent as it got us started on a solid foundation and it has paid off tremendously.
The reason none of us can (or should) tell you what to do with your money is we don't know what a good planner will learn from you and use to craft a plan for your needs... what are your investment goals? What is your tolerance for risk? Your tax situation? All these things and others are relevant to what your plan should address.
You can pay for a plan, learn some on your own, and then follow the plan without having to pay ongoing fees. I think you'll be very happy down the road if you get a plan now.
Pay off the mortgage. Put the rest in tax-exempt bonds and an index fund.
There are plenty of books but that isn't what you need. You can go to several places and find good Financial Advisors, I do this but I do it for businesses on a part time basis, I retired a number of years ago. Just a few hints, first you should both be putting as much into 401k plans at work as possible to defer taxes on your income. The max is around $15,000 each this year I think, haven't look at it but it's around that. With your income level, you should be considered potential high net worth individuals to financial advisors who will at least meet with you and give you leads to go other places or maybe even discount their service to you. Worse case, just open an online account with Ameritrade or another service and put your excess funds into any of the recommended mutual funds, over time you can expect good growth.
I wish i had your problem buddy! I have a friend whos a financial consultant. he works for charles schawab or something. I just give my 5% to him. he's a good friend. call one of those.
There are a lot of ';experts'; out there who just want a big chunk of your money without providing any really useful strategy or information.
I'm a banker with an MBA, so it's probably easier for me to spot charlatans than the average person. I'd recommend reading a couple of books by Ray Lucia. His first book is called ';Buckets of Money';. There are lots of people with seminars and books on securities, real estate, trusts, insurance, etc. But I swear - this guy is the real deal: he addresses a multitude of factors, doesn't give bogus information, doesn't unnecessarily complicate matters, and is very adept at addressing an individual's particular circumstance. He has a syndicated radio show that he does with a tax attorney and one other guy. You could probably attend one of his free seminars around the country - and these aren't just sales pitches for other seminars.
I think you could get a lot out just reading this guy's books - he generally gives advice to people like you, who are already making good money but need advice on how to manage it properly. Check out the website below - good luck.
Go to a professional financial planner. You can find them in your yellow pages or likely get some reccomendations within your workplace.
If you're looking for a financial adviser, I'd recommend checking out the Paladin Registry, as a way to find one. I've used it and am very happy with their process. It is free, and they provide a bunch of independent resources on what to look for in a good financial planner.
Good luck.
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