Nov 01 2010

This is my month of financial responsibility


I’m feeling just a leetle bit overwhelmed by the financial things I want to accomplish this month. We have an appointment with an attorney to draft up our wills, and we’re also planning on opening a Roth IRA and establishing education savings accounts for our children.

I feel really old all of a sudden.

I’m reading a book to help me get some advance understanding of what we should think about in terms of our wills, and I’ll share some more info with you on that soon.

For the IRA and ESA or 529 plan, we’re meeting with one of Dave Ramsey’s “Endorsed Local Providers” to give us some options. I trust Ramsey’s advice and I like how he vets his ELPs, so hopefully it’ll be a helpful meeting.

In the meantime, I’m trying to understand the fees that will be associated with all of our investments and how best to maximize what we’re doing. I don’t want a high-fee investment to take away the bulk of the earnings, you know?

All of these things just feel so complicated to me. I hope that once I sit down with some professionals, that they’re able to explain things to me in a way I can understand.

We work hard to save our money and I think it’s important to make sure it’s working hard for us.

How did you set up IRAs or 529 plans for your kids? Did you work with a financial planner or did you do it yourself? Any advice?

Posted under Uncategorized | 2 Comments »

2 Responses to “This is my month of financial responsibility”

  1. Not sure about 529s, but we set up our own Roth IRAs with T. Rowe Price and it was SO easy. We started with nothing, though. We just opened the accounts and set up a monthly auto transfer.

    T. Rowe Price made it really easy. When we set ours up, they had an option to choose a portfolio based on when you’d be retiring. As we age, the account will automatically shift to meet our needs better. For instance, since we were only 24 or so when we opened the account, the portfolio is pretty aggressive. But if we were still using the same Roth IRA at 50, it would be much more conservative in preparation for our retirement.

    Someday I hope we’re knowledgeable enough about investing to do some of it manually. But for now, we really liked how simple it was, and the accounts have been doing pretty well as the economy turns around!
    Karen´s last post ..What not to say to a pregnant lady or any lady for that matter

  2. We went with our state plan for our 529’s. We did it ourself and found the fees through state plans to be more reasonable if you did the age adjusted target funds than to go with a straight up mutual fund. I prefer not to be picking and altering my asset allocations and I believe that fees are the primary indicators of performance. I also do index funds over mutual funds generally. Ours is with Fidelity.

    Untill you get a large amount of assets if you have done some basic research I feel that hiring a professional is a waste of your funds. The internet for each state I looked at holding our 529s was helpful in looking at the options.

    ESA – I don’t like them. There has been talk about changing them so you can’t use them for education before college. I don’t want to burden myself with 2 accounts per each child for college alone. Plus I find it suspect that of mainstream financial advice Dave Ramsey is the only one to advocate ESAs. If you are not sending your kids to private schools stick with 529s. Have higher yearly limits and easily can change the beneficiary on the accounts.

    We just recently had our wills redone. He recommended that you put anything about your wishes other than custodians of your child and finances in a letter of instruction. You want the people in charge of your assets and kids to be able to go with what happens in life – for instance if your child got cancer but your money can only be used for education as written in your will – they have the flexibility to use it on cancer treatments if you just stated only for education in a letter of instruction. A will usually is only good for those 2 things as actual beneficiary’s are listed on all your policies for insurance and on bank accounts. So a will won’t disperse your assets either.

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Hey! I'm Kacie, wife and mother of 3. I write about my family's finance: how we save money, improve our spending, and plan for the future.

I hope I can inspire and encourage you to improve your situation. See disclosure.

I'm adopting a much slower-paced posting schedule, and treating this as a hobby blog now.

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