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Peter AshbyCFP®

Adams Ashby Financial Advisors is a fee-only Financial Planning firm located in Roseville and Sacramento CA areas.

Roseville, CA
Founder, Adams Ashby Financial Advisors
Fee Structure: Fee-only
Typical minimum client assets: $250k

This describes how advisors are compensated for their work. Learn more in our Guide to Advisor Compensation
Advisors offer free consultations to determine if you're a good fit for one another. Providing more information in the consultation request will help advisors have a better sense of what you're looking for. The advisor will contact you via email and set up a time to meet. Depending on the advisor, and your preferences, this could be an in-person or online meeting. You are under no obligation to engage them after meeting with them.
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23 people found Peter's answers helpful

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  • 3 out of 3 people found this answer helpful

    I work in finance and my compensation is tied to equities. I want my investment portfolio to help hedge some of that risk, but I'm also young and want to stay aggressive. What should I consider?

    Asset Allocation, Investing

    Aggressive means different things to different people, so my first recommendation would be to identify

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    Aggressive means different things to different people, so my first recommendation would be to identify your risk tolerance.  You can find questionaires on Vanguard, Schwab, Fidelity, etc.....Once you've completed that, you will be able to identify what mix of equities and fixed income you should have.

    Once you've completed this, the next 3 steps I recommend you take are as follows:

    1.) Identify your which asset classes your equities are in.  If everything falls into Large Cap U.S. Equities, start looking into Small Cap and Mid Cap companies or indexes.  After that, take it  further by separating them into growth and value. 

    2.) Look Internationally - Another way to diversify your portfolio is to look oversees.  These companies and indexes are typically divided into 2 classes: Developed and Emerging Markets.  You can gain good exposure to these through an ETF or Mutual Fund. 

    3.) Consider different alternative asset classes.  REITS, High-Yield Bonds and Commodity funds are also worth researching as they tend to be aggressive yet diversify your portfolio even further.

    Lastly, you should set up a re-balancing plan or a limit to how much each sector can represent in your portfolio.

    Good Luck!

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  • 3 out of 3 people found this answer helpful

    My company just reduced the amount I can contribute to my 401k because I've been classified as a highly compensated employee. Is there any other investment that I can contribute to on a pre-tax basis to make up that shortfall?

    Tax Deductions and Credits, Retirement Savings, Taxes, Investing, Retirement, 401(k)

    The only other possibility would be an HSA (Health Savings Account).  You can put up to $3,300 away

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    The only other possibility would be an HSA (Health Savings Account).  You can put up to $3,300 away if you are singe or $6,550 for a family.  There is also an additional $1000 catch-up contribution if you are 55+.  You need to be enrolled in a High Deductible Health Plan to qualify for this account.

    Good Luck!

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  • 5 out of 6 people found this answer helpful

    We're approaching retirement and trying to make sure we have our ducks in a row. Are we on the right track to have a steady when when we retire? How should we be investing?

    Mortgages, Asset Allocation, Personal Finance, Investing

    Possibly.There is a lot more information an advisor would need to properly assess your financial situation

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    Possibly.There is a lot more information an advisor would need to properly assess your financial situation but I will give you a few pointers to get you started in the right direction.

    1.) Create a spending plan (budget).  Do you know what you are currently spending now?  You state that you make 160k a year but is that gross or net of taxes? Also, you said that you are maxing out your 401k and 457.  Is that both of you or just one? The difference between saving $35k and $70k a year is significant and will change how much income you are trying to replace.   

    2.) Create a retirement goal.  Some people can live off of $50k a year, some people want to live off $150k a year.  The reason it is important to create a spending plan is so you can make an informed decision about how much income you will need during your retirement years. Don't forget that you will have more time on your hands so don't be surprised if spending actually increases the first few years after retirement since you now have more time to travel, pursue hobbies and dine out. 

    3.) Coordinate your benefits. You will need to decide at what age you want to retire. Make sure you know the best time and strategy for filing for your Social Security Benefits as this can change the amount you receive by around $100k. 

    4.) Make your investment decisions.  Most people want to do this first but you will be in a much better position to make informed decisions if this is the last step in the process.  You will need to determine your risk tolerance and then compare that against the return you will need to reach your retirement income goal. 

    There are other things you will need to do to prepare for retirement but hopefully this gets you started and on the right path.

    Great job on getting your mortgage paid off as that can make your spending plan much more flexible during retirement.

    Good Luck!

    Was this a helpful answer?

    Advisors offer free consultations to determine if you're a good fit for one another. Providing more information in the consultation request will help advisors have a better sense of what you're looking for. The advisor will contact you via email and set up a time to meet. Depending on the advisor, and your preferences, this could be an in-person or online meeting. You are under no obligation to engage them after meeting with them.
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  • 2 out of 3 people found this answer helpful

    i have both a Roth IRA and soon to have traditional from city retirement fund when I resign. How can I figure out which is a better option for the most gain in the end?

    Investing, Traditional IRA, Roth IRA

    It depends on what you mean by "most gain at the end".  If you own the exact same investments in

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    It depends on what you mean by "most gain at the end".  If you own the exact same investments in both accounts, they will perform exactly the same way since you won't have to pay taxes on the gains each year.  You will start to notice a difference in the Traditional IRA when you turn 70 1/2.  You will be required to start taking a yearly minimum withdrawal or RMD which will reduce the amount in the account every year.  Then, as Larry said, you would be required to pay tax on this amount subject to income, deductions, etc..... 

    If you are trying to figure out whether or not you should keep your Traditional IRA from the city retirement fund or convert it to a Roth IRA, you will need to forecast what your expected tax rate will be during retirement against what you will have to pay the year of conversion.

    There is also other factors to consider such as what purpose the money will serve.  Are you trying to pass this money on to your heirs?  Do you want the flexibility to never have to withdraw the money or only years you choose? 

    Good Luck!

    Was this a helpful answer?

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  • 2 out of 3 people found this answer helpful

    We have a lot of student loan debt, and we're considering deferring payments to my husband's 403b (not matched) to pay down our loans faster. Is that a good idea, or should we continue the contributions?

    Paying for college, Personal Finance, Investing, 401(k)

    Good job aggressively going after your debt!  From the information you gave above, I would recommend

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    Good job aggressively going after your debt! 

    From the information you gave above, I would recommend you stay on your current path.   Depending on your risk tolerance, long term returns will most likely be somewhere between 5-8%. Since you are borrowing money at a cheaper rate than this, it makes saving in the 403b a good choice even without a match. 

     You should also consider it from a tax perspective.  Since you bring home around 8k a month, my guess is that you are well within the 25% federal tax bracket.  If you were to stop contributing to your husbands 403b, the additional $500 would be subject to that tax bracket (plus any state taxes you might have) which would greatly lower the amount you would actually be putting toward the loan.

     You are doing the right thing, pay off the higher interest rate loan first and then move on the lower ones next.  

    Good Luck!

    Was this a helpful answer?

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  • 1 out of 1 person found this answer helpful

    I'm running some calculations on expected returns from our 401k and Roth IRA. The results look pretty grim. Am I doing the calculation wrong, or is this really all I can expect from my 401k and Roth IRA?

    Retirement Savings, Investing, Retirement, 401(k), Roth IRA

    Good job trying to get a handle on this now.  Here's the adjustments I think you should consider.

    more »

    Good job trying to get a handle on this now.  Here's the adjustments I think you should consider.   

    1.) Check your 401k plan statement.  Many times the returns are net of fees and the 7% return has the expenses already figured in.

    2.) Use the Inflation-Adjusted Rate of Return.  The equation is [(1-.Rn)/(1+i) -1] + 100 or 3.88 for your interest rate.

    3.) If you are assuming that inflation will increase at 3%, you should also plan on increasing your contribution to your 401k by 3%.  If you contribute $11,000 this year, then next year you should contribute $11,330.  Since wages typically grow with inflation, you shouldn't assume that in 15 years you will still only be putting away $11,000.  If you run the numbers assuming an increased savings rate of 3% a year, the number comes out a lot higher(over a million).  

    Hope this helps. Good Luck!

    Was this a helpful answer?

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  • 1 out of 1 person found this answer helpful

    I am 29 and currently contributing 15% of my income toward a Roth 401k. I am not putting any money into an IRA. Should I contribute the max toward an IRA before increasing my 401k contributions?

    Retirement Savings, Investing, Retirement, 401(k), Roth IRA

    There are varying opinions on this but my advice would be to look at what tax bracket you are in. If

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    There are varying opinions on this but my advice would be to look at what tax bracket you are in. If you are in the 15% tax bracket, I would continue to increase the amount you are saving in your Roth 401k.  If you are in the 25% or higher and your MAGI (Modified Adjusted Gross Income) is below the phase out limits, then I would definitely consider maxing out your Traditional IRA to take advantage of the tax savings.  (Note: Since you are participating in an employer plan, you are subject to the deduction phase out limits. Single -  $60,000 - $70,000. Married - $96,000 - $116,000. Married but one non-active spouse $181,000 - $191,000)

    Good Luck!

    Was this a helpful answer?

    Advisors offer free consultations to determine if you're a good fit for one another. Providing more information in the consultation request will help advisors have a better sense of what you're looking for. The advisor will contact you via email and set up a time to meet. Depending on the advisor, and your preferences, this could be an in-person or online meeting. You are under no obligation to engage them after meeting with them.
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  • 1 out of 1 person found this answer helpful

    We're debating buying a rental property, but we're not sure it's the best investment. How do we know if it's right for us? Also, is there a way for one partner to contribute to another's 401k? (details below)

    Marriage, Mortgages, Personal Finance, Insurance, Investing, Property Insurance, 401(k)

    Hi Roberta, Here are a few things consider when deciding on whether or not owning an investment property

    more »

    Hi Roberta,

    Here are a few things consider when deciding on whether or not owning an investment property is right for you.  1.) What is my return on investment? (ROI)  Since you will be collecting less in rent than you will be on bills, you start from a negative cash flow position.  You will be paying out $550 a month for the next (x) amount of years.(don't forget that you will have extra expenses such as maintenance and management fees if you use a company) Since you said that your mortgage payment will be around $1300 a month, my guess is that you will be putting down around $270,000 on a $600,000 property.  Which leads to your next question: (2) is there somewhere else you could invest to receive a better investment return? Since you will be cash flow negative on the investment property, you will be relying on appreciation to make it a successful investment.  So, look around at the area.  What are the prospects for price appreciation?   Is this property something at could appreciate 4-5% a year for the next 10 years.  I know SF is the exception to most real estate rules so if that's where you are looking, different rules apply.  I'd also look into real estate outside the Bay Area.  I see many investors in up here in the Sacramento region who can purchase a house for around what your down payment is and be cash flow positive from day 1.  Lastly, you could always consider a balanced portfolio that has historically returned around 6-7% that would keep you from having an net outflow of money every month and would just about double in 10 years (with a 7% annualized return).

    The answer to your question about contributing to your partners 401k is technically no. What you would have to do is have the person making $80k max out there contribution from their paycheck. If you have joint accounts, then it's easy.  If you keep separate accounts then you would have to have an agreement that would even out the difference in your bank accounts and paychecks.

    Hope this helps, Good Luck!

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  • 1 out of 1 person found this answer helpful

    I started learning about finance about a month ago and am looking to get into investments. Should I open a Roth IRA and a normal brokerage account for stock trading? Or should I use the Roth IRA as the tool to trade stocks? Thank you

    Asset Allocation, Investing, Roth IRA

    I recommend that if you are going to try and start trading stocks that you open up both.  A Roth

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    I recommend that if you are going to try and start trading stocks that you open up both.  A Roth IRA will shield you from taxes on gains but it will also prevent you from writing off losses.  Most, if not all, traders make mistakes and if you happen to make a few big ones, you can write off your losses against your gains and up to $3000 additionally.  Your Roth IRA should be considered a retirement account and since you can only put in up to $5500/yr, a major loss in a trade isn't worth the tax savings (in my opinion).  

    Since your time frame on buying a house is 2 years, there isn't much you should really invest in.  If you are receiving less than 1% in your savings account, you could look at a 1 yr CD which can provide a little over 1% at current rates.  

    Good Luck!


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  • 1 out of 1 person found this answer helpful

    I currently have 2 mortgages, and I'm considering refinancing. Is now the right time (I'm about to retire), or should I just stick with my current repayment schedule? (details below)

    Mortgages, Personal Finance, Retirement

    It will depend on your purpose for refinancing.  From a strictly financial perspective, it would

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    It will depend on your purpose for refinancing.  From a strictly financial perspective, it would be better to finish paying on the original two loans. If you are 25 years into a 30 year loan, most of your payment on the 1st is going toward principle at this point.  A refinance is going to cost you somewhere in the $2000-$3000 dollar range and that money would be better spent paying down the principle of the 2nd mortgage.  

    If it is a cash-flow issue, then it might be something to consider but I or any other planner would need to know your specific situation.  If this is the case, I recommend you find a financial planner to help guide you through this process.

    Good Luck!

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About

Peter Ashby,CFP® has been a practicing Financial Advisor since 2007. Starting his business in the midst of a global recession and banking crisis, Peter learned from the beginning, the dangers of unbalanced investments and excessive risk taking in portfolios. His mission is to educate his clients about their financial lives and work with them to achieve their goals. Always striving to be at the forefront of his profession, he has received his Certificate in Financial Planning from Boston University and has received his CFP® (CERTIFIED FINANCIAL PLANNER™) designation. He specializes in retirement income, retirement accumulation, debt management and small business plans.

Details

Contact Info
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Email
pete@adamsashby.com
Phone
916-740-1116
Address
967 Reserve Dr
RosevilleCA 95678
Firm Website
Focus Areas
Retirement, Investing, Taxes
Client Specializations
Doctors/physicians, People near retirement, Young professionals
Education
Certificate, Financial Planning, Boston University

BA, History, CSU, Chico
Registrations
Individual CRD #5292327
Regulatory Records
Please visit FINRA's website to review Peter's records
While designations are not everything when selecting a financial advisor, they often indicate a certain level of knowledge related to a specific field and/or commitment to certain ethical and professional standards. Please see our detailed Guide to Financial Advisor Designations for more information.
Designations
CFP®

*Financial Advisor Disclaimer: We try to keep information accurate and up to date, however we cannot make warranties regarding the accuracy of our information.

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