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“I offer comprehensive, fee-only financial advice and investment management to individuals and business owners.”
Andrew Comstock has more than 13 years experience as a portfolio manager where he provided clients expertise in investment management, financial planning and retirement planning. He founded Castlebar Asset Management, a fee only registered investment advisory firm, in order to provide his clients with the highest degree of service, independent financial advice and expertise. Mr. Comstock has demonstrated his commitment to his profession by earning the financial industry’s top credential in the Chartered Financial Analyst (CFA) accreditation. Andrew specializes in working with individuals and business owners in the areas of portfolio management, estate planning, and business retirement planning. Castlebar works with clients in the Johnson County Area which includes: Leawood, Overland Park, Lenexa, Shawnee, Olathe, Mission Hills, Prairie Village, Fairway, Westwood as well as Kansas City, Missouri.
Having an emergency fund established is a foundation to becoming financial independent. The next step
Having an emergency fund established is a foundation to becoming financial independent. The next step once you have reached your goal of having three to six months in your emergency fund is how should you investment this money.
When it comes to where to put an emergency fund you should think safety first. This account is not something you are looking to maximize returns. It is there to provide a cushion when the unexpected happens. Your emergency fund should be in either a savings or money market account. In today’s low interest rate world it might seem like nails on a chalk board to hold cash and earn next to nothing. In the moment you need it you’ll be pleased it is there.
Setting up a savings account at an FDIC insured financial institution is a great place to hold this account. Another option is to put it in a money market fund with mutual fund or brokerage company. Money markets could enable you to pick up a little bit more interest but still meet the liquidity requirements needed.
If you just can’t bear the interest rates offered in savings or money market accounts there are a few other options.
Online savings accounts are a way to pick up between 0.5% to 1% in interest over traditional savings accounts. There are many great sites out there that will show which banks are paying the best rates.
Breakable CDs can be a way to get rewarded for parking your emergency fund for a longer period of time. Banks offer a certificate of deposit that will allow you to withdraw money with only a slight penalty of a month or two of interest payments. CDs have the additional benefit of keeping this cash outside of your immediate reach. If you are tempted to use your emergency fund to buy discretionary items this could be a good choice
Blending these accounts or investments is also a smart decision. Keeping three months of expenses in a savings account and three months in CDs or some other combination is an intelligent way to invest your emergency fund.
It is smart to start saving for retirement using a Roth IRA. I would not use it for your emergency account. It best to keep those seperate.
A direct rollover from a 401(k) will not trigger a tax event. If you roll the Roth portion into a Roth
A direct rollover from a 401(k) will not trigger a tax event. If you roll the Roth portion into a Roth IRA, the regular 401(k) and employer contribution into a traditional IRA you should not have any issues. The plan sponsor or an investment advisor can walk you through how to make sure this is not a taxable event for you.
Hope this helps!
This is great question but tough question. Managing your own investment portfolio is something that you
This is great question but tough question. Managing your own investment portfolio is something that you can do on your own. The question is do you want to invest the time to ensure that you are able to do it correctly. If you are willing to go this route I would check out Vanguard and focus on having a diversified portfolio in low cost mutual fund and ETFs. Have a plan and stick to it.
Your other question comes to financial planning. I would recommend you set up at least a consultation with a financial planner. There is a cost to having them create a plan but many planners will offer an initial consultation at no cost. A financial plan will give you the road map to help with some of your financial questions and provide you with the correct investment allocation to manage your own investments.
It sounds like you are doing a lot of things correctly. High net worth families do hold assets outside
It sounds like you are doing a lot of things correctly. High net worth families do hold assets outside of your traditional investments like rental properties, real estate partnerships and businesses. There are advantages and disadvantages to moving outside of a traditional framework.
Your best course of action is to probably sit down with a financial planner or investment advisor who can help create a strategy to accomplish what you are trying to achieve. They can show different asset categories which you should consider. Before moving into alternative investments I would make sure that you are educated and feel comfortable in anything you invest in. I would advise my clients to be opportunistic about this type of investing and not too move quickly.
Hope that helps.
The fees you need to look at are: Transaction Fees: These occur when make a transaction in a stock. Many
The fees you need to look at are: