Financial Advisor: Chandra Ritter - Financial Architects

"Saving for my child is a non-negotiable. It's extremely important to me that I set them up for success. I contribute $150 per paycheck to an account for my kids. I don't know if putting it into a CD is the most efficient use of the funds."

There are several routes when setting up savings for kids. Depending upon the timeline, the use of the funds, and the individual child's attitude toward money there are different options that may be the best fit.

I have a child who will save every cent ever given to them. My other child doesn't care the bank balance. When and how they get access to the money matters, as does the goal of the funds.

We found the best combination of CDs in a savings accounts and an investment account for this parent.

I cannot stress enough... listen and learn from other people about finances. Don't take it as gospel though.

Just because Frank made a lot of money in real estate, doesn't mean you should own rental houses. Why it may not work for you: Frank is a handy man and can do all the repair himself, you're not handy and will have to hirer it out.

Just because your grandma made a bunch of money in bonds, doesn't mean you'll do the same. Why it may not work for you: bond returns in the 80s were around 12% and 18%. They haven't been that for a bit.

Just because your parents say "all debt is bad" and "pay it off as soon as possible", doesn't necessarily mean you should pay extra on your 3% mortgage. You may gain a higher rate of return growing your wealth.

Everyone has something that worked for them. That's amazing. Learn about it and find out the pros/cons. Just because it worked for them, doesn't mean it will fit well for your situation and risk appetite. Listen for knowledge, not blind following.

"I can't afford to lose money. The market scares the crap out of me."

One of my clients came in for a consult. She wanted to know with the amount she'd saved up, when could she comfortably retire. She'd recently inherited some funds, and wanted to know how to safely grow it.

This case was a bit difficult.

She had a (well meaning) family member telling her how he made his fortune, but it was in the market where she wasn't comfortable. (Also rental houses, but she's not handy and he lives across the country.)

So we talked a lot about pros/cons of market. We talked about safer places to grow money (like annuities). There's a lot that's scary about it all. I ran retirement projections at where she's at today. We discussed potential holes in the financial plan, like if she ended up in a long term care facility.

She ultimately decided to put the money into the market (even though it goes against her gut about potentially losing money), she increased her 401k contributions and we're looking for a potential retirement in 5 years. She knows now what her projected retirement picture looks like in the future.

Come join Caley and myself next Wednesday.

I cannot stress enough... listen and learn from other people about finances. Don't take it as gospel though.

Just because Frank made a lot of money in real estate, doesn't mean you should own rental houses. Why it may not work for you: Frank is a handy man and can do all the repair himself, you're not handy and will have to hire it out.

Just because your grandma made a bunch of money in bonds, doesn't mean you'll do the same. Why it may not work for you: bond returns in the 80s were around 12% and 18%. They haven't been that for a bit.

Just because your parents say "all debt is bad" and "pay it off as soon as possible", doesn't necessarily mean you should pay extra on your 3% mortgage. You may gain a higher rate of return growing your wealth.

Everyone has something that worked for them. That's amazing. Learn about it and find out the pros/cons. Just because it worked for them, doesn't mean it will fit well for your situation and risk appetite. Listen for knowledge, not blind following.

"My husband just died. I'm trying to decide if I should withdraw some out of my IRA now, or wait until RMD age. I want to control my taxes."

I'm so blessed that the wonderful women was referred to me. I helped her process a lot of the paperwork to move accounts into her own name.

If you haven't gone through it...it can be a lot. It's very overwhelming, and they usually send multiple copies, which is confusing as all get out. All while you're grieving.

Back to her main question, should I withdrawal some now, so it's not a tax burden in the future. 🫨 You guys! This lady was ON TOP of her knowledge. This is a complex question that I usually have to bring up, not one that's usually brought to me. So HIGH FIVE to her for understanding it all.

We ran the analysis.
- We discussed roth conversions as this was her last year being able to file joint.
- We discussed if she left it as it was predictions of what her account growth may be and what her RMD estimate might look like.
- We discussed her taxes potential taxes if she withdrew some today.

All these scenarios ran by her tax professional to give her the best outcome. If you need someone in your life to do these things. I'd love to help you out.

"I'm in accounting! I should know finances."

I have several people that have said this to me. There's no shame in not knowing all the financial stuff.

Just because you work with debits and credits, doesn't mean you're supposed to know all the rules and regulations or pros/cons around what to put in an IRA vs 401k.

I've met people who REALLY know their stuff, and I've met those that are just starting their financial journeys. I've been able to provide some education to all.

If you're interested in taking the anxiety out and getting clarity around your financial next steps, reach out.

"We are just starting out. We feel like we're behind, because our friends are already buying houses. Paying for our wedding is top priority right now and our dogs are kind of expensive. We don't know what we don't know."

This couple came to me to get some financial education. They felt behind because they don't have the luxury of having family that got them started. Not everyone starts out the same, and it's ok.

We set goals, and got her set up with a second job. He's currently applying for second jobs. We talked about PMI, roth vs traditional, whole life vs term life, IRA vs 401k, etc.

Now, as they are saving their funds, we'll get an emergency savings built, then we'll get into the market to have their savings grow. They have clear understanding of their next steps.

Do you know someone just starting out? Starting out building a business, just married, recently divorced...any phase of starting, I'd love to partner with you through it.

Speaking of last week....

Seriously, I need to find salad places. If you know of locally owned SALAD/HEALTHY places...please let me know. 😂

BUT - Con Amor....I have dreams about how good their pastries are...We had a ladies networking lunch there. It was so much fun, as always.

While I was in the neighborhood, I stopped by Grow Room downtown Waterloo too to say hi to Joe. Stop by there if you need any plants.

- shop and support local!

My career path didn't follow the 'normal' path.

I started college, but didn't know what I wanted to do.

I realized I LOVED corporate training, but then moved to a small town where that wasn't needed.

I needed a job with health insurance, so I became a secretary at Edward Jones. Then I realized, financial advising is a lot like corporate training...teaching adults how to think about their money differently.

Life's messy, we can learn things that aren't natural to us. If you're looking to expand your financial knowledge...I got you.