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  • What to ask FA candidate?

    Hello, this is my first post. I am a 31 y/o dentist single no dependents. I associated 3 years after dental school and have owned my own office for 1 year now.
    i think I need a financial advisor or a serious plan because although I am good at saving money I am really bad at investing. I am interviewing financial advisors and need to know what to look for in a good one.
    i own my office real estate, 2019 income is about $450kish. Income will more than likely go up next year onwards. I only spend about $72k a year personally everything else is available for investing. Currently just sitting on about $200k liquid cash in a savings account outside of retirement accounts which are another $100kish. I still owe about $500k in student loans, which I am probably going to refinance. I know I will need a 401k for the office to start funneling pretax money into. But besides maxing out all retirement accounts I will most likely still have extra money to invest. Is it worth it to get a financial advisor? Or should I just buy indent funds by the bulk?

    I am considering buying the white coat investor course package. Has it substantially helped all of you?

    need help/guidance. Thank you

  • #2
    no to the advisor, no to the course, yes to index funds in bulk.

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    • #3
      Can you give me more information? I find it very difficult to navigate the financial world and gain knowledge without someone constantly trying to sell me something

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      • #4
        https://www.bogleheads.org/wiki/Inve...ds%C2%AE_forum

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        • #5
          Originally posted by Molarr View Post
          Can you give me more information? I find it very difficult to navigate the financial world and gain knowledge without someone constantly trying to sell me something
          it's not rocket science, open a fidelity or vanguard account, put money into index fund.

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          • #6
            Originally posted by Molarr View Post
            Hello, this is my first post. I am a 31 y/o dentist single no dependents. I associated 3 years after dental school and have owned my own office for 1 year now.
            welcome

            Originally posted by Molarr View Post
            i think I need a financial advisor or a serious plan because although I am good at saving money I am really bad at investing. I am interviewing financial advisors and need to know what to look for in a good one.
            well first yes a plan. without one, what will you even ask your potential advisor?
            theres a list here you can start with.

            Originally posted by Molarr View Post
            i own my office real estate, 2019 income is about $450kish. Income will more than likely go up next year onwards. I only spend about $72k a year personally everything else is available for investing. Currently just sitting on about $200k liquid cash in a savings account outside of retirement accounts which are another $100kish. I still owe about $500k in student loans, which I am probably going to refinance. I know I will need a 401k for the office to start funneling pretax money into. But besides maxing out all retirement accounts I will most likely still have extra money to invest. Is it worth it to get a financial advisor? Or should I just buy indent funds by the bulk?
            well youll have to learn about a solo 401k, employer plan if you have employees, backdoor rIRA, taxable account. and all of those will have index funds.


            Originally posted by Molarr View Post
            I am considering buying the white coat investor course package. Has it substantially helped all of you?
            ive never seen the contents so no comment. its probably the fastest way to get started however.
            however, as FLP correctly pointed out, Bogleheads, their reading list, this blog and books are places to start.
            you have no finance education. so like all education, you start at the beginning.
            its not hard. but it does take time. how much are you willing to contribute/work?

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            • #7
              I wanna totally max out retirement accounts and probably put about & invest an additional $150kish per year if am able to. I don’t see myself working till 65. Probably do an early retirement at 45ish-MAYBE or at least work part time.

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              • #8
                Originally posted by Molarr View Post
                I wanna totally max out retirement accounts and probably put about & invest an additional $150kish per year if am able to. I don’t see myself working till 65. Probably do an early retirement at 45ish-MAYBE or at least work part time.
                I suspect Peds meant effort contributing to learning. Most of us here are DIY. The WCI course would perhaps not be a bad place to start depending on your level of financial education. Probably most regular forum posters have not taken said course as it is relatively new and somewhat knowledgeable. I would be interested however to hear from those who have.

                Your original question about a FA depends greatly on what you want them to do for you, and what you are willing to pay for it.

                Edit: strong savings rate you will be fine keep reading

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                • #9
                  I would start off with the Bogleheads Wiki as well as their book. Even if we give you a bunch of questions to ask the advisor, you probably don't have the financial knowledge base to interpret those answers. Investing can be as simple or as hard as you want it to be. Even if you establish a solid knowledge base and decide you'd still prefer an advisor, you won't be in a position to get taken for a ride.

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                  • #10
                    you could start here....https://www.bogleheads.org/forum/vie...38d5293617f30b

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                    • #11
                      FA is typically advising you on your investments. That piece is fairly simple. A two or three fund portfolio with get you pointed in the right direction.
                      A CPA will advise you on your retirement options for you and your business. You can gain alot by reading a little. On the blog check out some of the articles. For example,
                      https://www.whitecoatinvestor.com/fi...nd-attendings/
                      Guess what, paying off your loans really needs to come way up on your priorities. Hit your retirement saving at 20% and through the rest at the loans.
                      Make a list, check it twice and figure out how to invest it.
                      Try this: https://www.whitecoatinvestor.com/28...und-portfolio/
                      You can invest your time for a weekend or pay someone to give you a solution that may or may not fit you. Pretty simple, don't make it hard.

                      A financial planner can help with a long term plan, but it doesn't sound like you are ready for more than paying off the debt, maximixing tax savings and investing it. Pay off that debt.
                      Welcome to the forum.

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                      • #12
                        What rate do you have on those loans?
                        It never hurts to pay down debt. Is it always the best choice? No way. But it is never a bad choice.
                        When I first started I did not know anything but had a lot of debt. I used it somewhat as a crutch so that I did not have to thin or learn about anything financial. So I just shoveled money at that until it was gone and then had to figure out what to do which lead me here. I wish I put in the effort upfront because I would have been a little further ahead with retirement but I am very happy the debt is gone. While you are doing this keep reading and by the time the debt is gone you can have a plan.

                        The websites above are excellent. The WCI main page has a getting started section that is helpful. The WCI book(s) are a good start. Bogleheads guide to investing is another good start.

                        You have a few weeks before the end of the year to figure out the back door Roth. I would attempt to do that. https://www.physicianonfire.com/backdoor/

                        Good luck

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                        • #13
                          I would forget the financial advisor. I would be putting everything outside of 401k/ backdoor roth towards those 500k worth of student loans. I imagine the course is a good way to learn knowledge quickly, but have never seen any of the content.

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                          • #14
                            I thought you are hiring flight attendants.

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                            • #15
                              You don't need a financial advisor to tell you that you have a ton of loans and a good salary. As a successful practice owner, there really aren't any other options with your student loans other than refinance and pay them off aggressively. What are you planning on doing with the 200k in cash?

                              The way I see it, you have tons of time to figure out a financial plan on your own. Start learning little by little. In the mean time, set up a retirement plan to get tax reduction and start doing the back door roth. All extra money goes to the loan. That should take you a few years. Why not put a bunch of that 200k towards the loan now and refinance them?

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