Financial Fitness

Yeah, That Was A Fun Little Exercise, Wasn't It?

2011-08-31T17:11:00.003-07:00

It's pretty obvious by now that the team I was going to join has had some bigger issues to deal with, such as hiring the replacement for Mr. Crazy Random Who Needed To Retire And Finally Did.

Would I still join if they approached me, so much later after giving me the verbal offer?

I don't think so.

I have had a really good summer and gained some key clients, so I think I am going to stick to this route instead of that one.

I am glad it didn't work out because I would not have been able to see the upswing this summer brought my way.

Just goes to show, you never know how things will truly work out to your favor.

Cost of Kitchen Remodel

2011-05-02T12:16:00.000-07:00

I have dreaded and looked forward to this project for 8 years now: Kitchen Remodel!

Gutting it and removing a wall and everything Brand New.

It's a little anxiety-inducing, however.

As in, $80,000!

That's alot of money.

However, we have done almost everything else to this house, and this will be a kitchen for decades and for whenever down the road we sell it.

After next week we start packing everything up and going out to eat for all our meals for about 6 weeks.

I also feel good about the fact that we now have over $600,000 towards retirement.

I will just ground myself around that number when I start hyperventilating!

Yet Another Step

2011-04-22T10:13:00.000-07:00

I met 2 more members of the team yesterday.

Even though I have been given a verbal offer from the decision maker (that happened a couple of weeks ago at that breakfast), I am still in limbo until Crazy Pants' replacement is hired, which could take awhile, because it's a VP position.

I hit yesterday's meeting out of the park, so I am at peace with what I could have done.

This process has now gone on for 5 month.s

It started early December.

I no longer am emotional about it (as in, I don't have that 'excitement' you have when you want a job really bad) and I think that's a good thing.

I still want it, but am not really focusing on it right now too much, mostly because my LLC is doing really well and I have gotten some new clients lately.

I haven't had it up and running for a year yet but am really happy with how my first year went.

The first couple years are the hardest because of all the seed planting that is being done, but i have confidence things will work out the way they are meant to.

Tomorrow Is, Finally, THE Day

2011-03-29T16:03:00.000-07:00

Tomorrow morning Breakfast meeting. This is it. Holy, I can't believe how long this has taken.

This Is Driving Me Insane

2011-03-04T15:52:00.000-08:00

Heard from the recruiter on Monday.

Said I'd hear back 'end of this week'.

It's now 4pm on Friday.

Nothing.

I really don't want this to drag on anymore.

But it looks like it is and that I now have to go through the whole weekend until next week now.

*sigh*

Well Wouldn't You Know It: Amazing As App!!

2011-02-21T13:14:00.000-08:00

I think it was the best I have ever had. I was ON. But let me back up for a minute.

I haven't ever quite gone through such a process as this one, and it has definitely been frustrating at times.

But my contacts in the group have been supporting me and saying I am the #1 candidate and why that is.

When I finally got the As App on schedule (which took a month) and then the actual day arrived (last Thursday, another few weeks), I was prepared.

Simply put, I got the job.

I don't have the offer yet, but got a verbal.

This team is an amazing team with respect to calibre of knowledge and skill at their craft. I also like how it is a team based approach and holistic (trusts, estate planning, portfolio management, premier lending).

Now I have a very, very big decision to make.

As App Is Tomorrow; Can You Believe It?

2011-02-16T08:52:00.000-08:00

You might as well say ok I think tomorrow you will be getting on a rocket and going to the moon, that's how odd and unreal this whole process has been.

I have 2 phone calls today with others in the group to help guide me to what in the world to expect from this tomorrow.

I mean really, it's been over 2 months; it's the strangest process (or lack thereof) I have been through.

It's hard to really take it seriously.

I Am Breaking Up With Russell International Growth

2011-01-31T09:57:00.000-08:00

Gave it a go for 4 years as it was MSFT's first international fund (at least that I liked) to their 401(k) participants.

But it's been underperforming against it's benchmark, MSCI World Ex-US Growth while charging us .59% expense ratio.

So I am switching to the Russell International Value SMA instead (these are the best international funds offered in the 401(k) plan. I wish there were more and I wish they were passively managed but I am working with what I have here).

The Russell International Value SMA has a slightly higher expense ratio at .61% . Yet we need international diversification so there it is.

It's done a better job of at least meeting and actually exceeding it's benchmark, the MSCI World Ex-US Value.

This is a newer SMA for the 401(k) plan. It's only been offered for a couple of years. I was hesitant to switch to it earlier because I needed to find out more about it first, and I have.

I moved 50% from the Growth SMA to the Value SMA last week and am moving another 50% today.

I don't like making bulk moves (e.g. all at once) because I believe in averaging in and out of positions to buffer against any drastic one - day activities.

So buh-bye Russell International Growth SMA, I gave you a good 3 years but you did me wrong.

Dear Public, We Have Failed You

2011-01-28T17:24:00.000-08:00

Yes it's a vociferous thing to say, but not all people who call themselves financial advisers have your best intentions at heart nor are they required to even remotely be qualified.

Why?

Because anyone can call themselves a financial adviser, and pretty much those that sell financial products do call themselves that, instead of what they really are: Financial SalesGuys.

But how about an actual Financial Planner?

That's where the client is truly served by someone with no inherent conflict of interest, because they are not using the Financial Plan as a means to sell you product.

Only a Financial Planner who is compensated by you, not by an annuity company, mutual fund company, insurance company, will be working for you.

Why?

Because the one who writes the check (you) is the one they work for.

I Can't Believe I Am Saying This: I Have The As App And Could Care Less

2011-01-28T10:16:00.000-08:00

Yep, it finally got scheduled.

Lots of apologizing from the Hiring Manager and 'encouragements' (FWIW) that I am The Candidate (which I confirmed from my other contacts there).

I actually pushed it out a bit, so it'll be awhile before it happens (always a good thing).

But sheesh I am resigned to not going there now, due to this process (lack of) and how long it's taken (my work style is very very different from being measured in weeks, as it seems to be there).

Yet I don't want to burn bridges; that's very stupid.

I really like the team but I need to know more about the people I haven't even met yet. And I got super turned off on this opportunity by the Mr. Random (aka Hiring Manager), who really should have retired by now.

So, I will go, prepared of course, but I will be asking some pretty pointed, but fair, questions.

My AsApp is with the SVP but I don't care I am asking the questions anyway, SVP or no.

I just signed on 2 new clients this week and that makes me just that much more settled and happy about what I am already doing.

Latest Update: Total Train Wreck

2011-01-26T11:03:00.000-08:00

So I contacted Mr. Random to see what in the world was going on with the AsApp (I have been told I have it but that it's now a function of getting in front of the SVP).

I have been ambivalent about this all along, because I am in a pretty sweet spot. However I really like this team and how they function (as well as the fact that it's not one of the financial services institutions).

And it's a very good position.

However, Mr. Random really needs to go before I would seriously consider a move over there.

He did contact me after I pinged him to find out if he died or just got lost in his way to work one day.

Without getting into specifics, his response was raising some red flags for me, even though in general it was positive and telling me they can't wait to make me a final offer.

But I am not interested in having more drama in my life so I am going to pass.

I may reconsider after he has gone (which is in the next year, maybe even sooner), because I really like the team, the overall group, and the company.

Will The Real Financial Planners Please Stand Up?

2011-01-25T09:38:00.001-08:00

If you go to Ameriprise, or MetLife, or Edward Jones, or any other financial services 'institution' please acknowledge that you are dealing with a Financial salesperson that has conflicts of interest and not an actual Financial Planner who is providing you objective, tailored advice.

If you are not paying directly for the service then you are getting sold financial products and the compensation is coming to them from the products they sell you (you don't really think this is all free, do you?).

If you aren't personally writing a check to the Financial Planner for their services, then you likely are getting taken for a sweet ride (not sweet on your part though).

I've said it alot on this blog and it is still starkingly true: If you aren't working with an Hourly Fee-Only Financial Planner you are dealing with someone who has an inherent conflict of interest.

Why?

Because you aren't the one paying them.

The one who writes the checks is the one who the person works for.

These financial salesguys are, at best, advising you to buy financial products that may still be suitable, but are not necessarily the best fit for you.

Only Fee-Only Financial Planning, practiced by someone who has also at least passed the Certified Financial Planner (tm) Board exams, is objective and knowledgeable enough to provide actual, tailored, financial planning with no conflicts of interest.

You can find an Hourly Fee-Only Financial Planner through NAPFA or just do a Google or Bing search for one in your area.

Financial Planning and buying financial products (e.g. actively managed mutual funds, cash value life insurance, annuities) are not the same thing by a long shot.

Or Maybe Not

2011-01-21T16:53:00.000-08:00

What the hell is it with people in this industry?

As if I needed more randomness/unprofessionalism after Mr. Gold Link Bracelet.

I really would not have expected it from such a highly regarded firm.

Nor from people I have been networking with for almost a year now (granted, they aren't the Hiring Manager, but still).

And I didn't even pursue this one, they approached me.

Yet after having met with them the second week of December, then getting a follow up the third week of December that I'd be in the final round and that that would be set up the week of January 10, and yet, no word still?

It's beyond rude and I am beyond pissed. I don't want it now anyway but for the Love of All That Is Good can't you give me the effing courtesy to let me know one way or the other instead of leaving me hanging like this?

Totally disgusted with the Hiring Manager.

I am so glad my LLC is doing so well and that I have a pipeline going.

Because if I didn't this would have really shaken me to the core.

Instead it just irritates me and I can live with that.

Just One More Way That Chase Sucks

2011-01-12T09:31:00.000-08:00

Our Health Savings Account (HSA) is with Chase.

It was the only option available for our health insurance, which is with Cigna.

In order to have an HSA, you need to have a High Deductible Health Plan (HDHP), which we do through Bear's employer.

If you are a reader of this blog you know already that I am a huge fan of HSAs and that I am very excited we are able to participate in one.

So basically when Bear's employer provided an HDHP with an HSA as a Health Insurance option, we jumped all over it.

So we have been contributing to it for 2 years now and it has a nice balance on it that is becoming a pretty big number as opposed to just a rounding error on the balance sheet (well, it's still tiny on the balance sheet, but it is almost 5 digits so I am paying attention to it).

I looked up options to just having it in savings.

There are very restricted options, but they are there.

They are some index funds provided, of course, by JP Morgan (part of Chase).

But that's fine. Index funds are more or less index funds. There are some minor differences in them regarding how they track to an index but in the grand scheme of things are minor.

But in order to buy them I'd have to 'open an Investment Account'.

Care to know how much THAT would cost?

Try $2.50 a month!!!

Are you kidding me?!?!?

$30 a year just to open an account and then of course on top of that they still get their fees through the expense ratio for each of these funds.

I am so pissed.

I so hate Chase.

I can't even believe how crappy they are.

Again and again and again every single time I have had to deal with them has been a Massive Nightmare.

And believe you me as soon as Cigna has any other option for an HSA I guarantee you I will be the first customer in line to switch.

$30 a year, total rip off!!!!

What A Fabulous Year

2010-12-28T10:52:00.000-08:00

I'm just looking back on this year and amazed at how awesome it's been.

It went pretty fast for me and on so many levels it was a good year for me and for us.

In looking forward to 2011, I have alot of optimism and enthusiasm for what's in store.

Oddly enough the one thing that makes me cringe when I think about 2011 is the kitchen remodel, as it'll be such a huge project and disruptive.

But, focusing on the results; I don't know if I will ever want to leave my house again after it's done, it'll be so nice! (just kidding, I will leave my house).

I lost some dear relatives this year due to age and sickness, but have fond memories of them, and carry them in my heart.

I feel very blessed to have the marriage, family, friends, and overall abundance that I have.

I truly don't deserve it.

Merry Christmas and Happy New Year to you!

I hope that whatever situation you find yourself in as you enter 2011, that your heart can be reborn with hope and forgiveness towards those who you sense have done wrong by you.

Not Dead Yet!

2010-12-20T16:19:00.000-08:00

Well it looks like maybe I was overly negative in my takeaway from the 'meeting' (ok, interview) from a couple of weeks ago for The Opportunity (not solicited, it was a result of a lunch I had with a colleague who has been wanting to figure out how to work with me and bring me on board for 11 months).

I just this afternoon got an email from The Decision Maker that I am to meet with the Sr. VP after the holidays and he even apologized for not getting back to me sooner!

So, this opportunity is still alive and kicking and I'm still in the running!

I have been thinking that I wasn't, as I didn't hear back until now, and as I couldn't quite get a solid read on how it went with him, although it went very well with the other people I met.

Converted Traditional IRAs to Roth IRAs!

2010-12-20T10:58:00.000-08:00

That was a little nerve wracking, but I did it.

With only 1 1/2 weeks left to be able to do so!

I have been thinking all year the best portion to convert (all? partial? none?).

My decision to do this is the same as back in January, but I am glad I took the year to think about it (yes, I realize the values are higher today than back in January, but that is fine; I took the time to really think about it).

Going forward we will be 100% Roth for the 401(k) contributions, and have been for the last 2 years, but the future IRA contributions will have to be Traditional instead of Roth, since we exceed the AGI threshold for qualifying to contribute to a Roth IRA.

Not complaining, good problem to have.

So if you have been thinking about converting your Traditional IRA to a Roth IRA, time's almost up for being able to do it and spread it through 2 tax years (don't have to recognize the income until tax year 2011 and tax year 2012).

And, if you exceed the income thresholds ($177,000 for married filing jointly) then hop to it!!!!!!

Going To Sell The Rental House

2010-12-16T16:29:00.001-08:00

That's it.

Not worth it anymore.

One too many phone calls/emails and I am totally burned out on it.

Not blaming the tenant, just done.

I don't care anymore if it helps us with diversification blahblahblah.

I want paper assets; paper doesn't call me or email me with a new crisis that I have to cancel plans for to address, or find the right person to fix, or pay money to address.

We have had it for 8 years now and I don't regret it, but I am done.

December Balance Sheet: Up $10,240!

2010-12-13T16:49:00.000-08:00

But the more exciting part is we hit another big number on the odometer.

Very nice!

Every step forward is one step closer to more peace of mind and to our dream of financial freedom.

I know we are already a really long way towards that goal, and it is really fun to run the numbers and see it become more and more realized.

Separately, the thing I was so excited about earlier, has turned into an incredibly bizarre situation.

It's one that if I had experienced it when I was actively looking for a job I would have been a bit nutty by now.

It's a situation where I have been told, for 11 months now, that I would be a great addition to the team.

And it's a team I would want to join.

But I can't say much about it now because it's not quite done yet, even though it feels done because of how this latest instance went (as Bear said 'massive mindfukc').

I Hate Rebates

2010-12-10T10:41:00.000-08:00

So we bought our new washer/dryer, what, almost 2 months ago?

And 'of course' it had rebates associated with it.

Which, almost involuntarily, I filled out and mailed in.

7 weeks ago.

This is why I Hate Rebates.

Have I ever in my life sent in a rebate and not had to wait forever and a day? 0_o

Let me think no I don't have to think I already know the answer: No.

It is almost enough to make me not want to buy something, because when I see 'rebate' I get a sense of dread and would rather not buy it just to avoid the hassle.

So, I'd just like to take the time to say hey good work there, Washington State public utilities and State of Washington on getting those rebate checks in the mail!

/sarcasm

"I'd Be Afraid To Take You On As A New Client"

2010-12-09T11:38:00.000-08:00

So I have been interviewing for a new tax accountant (current one has made a mistake in each of the last 2 years).

I contacted one this morning who had been recommended by a peer.

He was slow on the uptake but when I told him what we were looking for, and that I passed the CFP, he said:

"I'd be afraid to take you on as a new client"

Hahahahaha!!!

Wow, well, that definitely is NOT the way to win me over and instill confidence in your abilities!

Oh Lordy Lordy I Am Excited!!

2010-12-06T12:16:00.000-08:00

Something big, something really truly unexpected.

Been working on it for a long time but truly absolutely did not think something would come of it.

Will know more after tomorrow but omg right now I can't quite believe this!!!

This will be very exciting and bigger than I had ever hoped for.

Oh Lord please don't let me mess this up tomorrow!!!!

Just be calm and cool and collected....deep breath.....

Exterior Shutters Done! 7th Home Project This Year

2010-11-28T12:58:00.001-08:00

We had shutters installed on all 4 sides; this is front and back for sense of what it looks like now.

We have had 7 home projects this year. And we are finally done with 2010 projects!!

They were:

1) Hardwoods installed in kitchen at rental house.

2) Exterior (planned) plumbing project (yuck!)-> pipe replacement

3) Interior (unplanned!!) plumbing project (double yuck!!)-> pipe replacement

4) Runner for stairs

5) House exterior painted

6) New washer/dryer (wow, when did washer/dryers get so nice?!?!)

7) ....and.....shutters!!

Sheesh.

That's alot.

So now we are finally ready for the next project on the list, and super excited about it too:

Taking the kitchen down to the studs, removing an interior wall, and....new kitchen!!! (no we are not doing this ourselves, no way!!).

That is 2011 Home Project.

It will be epic.

It will be so nice when it is done, I don't know if I will ever leave my house again! (I will, but I suspect I will really be very thrilled about getting this phase done with and no more Ghetto Kitchen).

November Balance Sheet: Up $20,031

2010-11-22T09:15:00.000-08:00

Great month!

Very fun to watch that.

Well I don't really have anything new to report about the Balance Sheet. I am going to be doing some rebalancing in January, but really nothing major needs to be done, as we are still pretty well balanced in the asset classes that match our goals and our risk tolerance.

We are about to turn another big number on the Balance Sheet odometer, I suspect in a couple months, after the annual contributions to the profit sharing account in January as well as the big annual bonuses that are realized in end of January.

January is a very fun month with all that!!

I keep wrestling with spending at this time of the year. I literally have to keep myself away from the stores because I just get in the zone and get carried away with myself.

Nothing too crazy but I still want to keep on target with the financial goals and going nutty with new things I don't really need (but maybe want) is not the way to do it.

Sheesh I even splurge when I go to Trader Joe's at this time of the year!!

I'm not going to worry too much about it, it's just that I know myself and want to stay true to my goals.

I have enough cute outfits and nice things for the house; I need to find contentment with what I have.

I definitely do believe though that you are influenced by your environment, and unfortunately for this anyway I am affected by it.

Also I have enough Christmas decorations, no need for more!

I am really excited, separately, about how my little LLC is doing. I got approved by the state in June and had a quiet summer, but now am on a pretty nice pace with clients and even just this weekend had 2 (separate) people tell me they want to hire me!

Nice!

Annual Damage

2010-11-15T17:10:00.000-08:00

Once a year I go shopping big time. I head to both Bell Square and downtown Seattle and shop!

OK, it's actually for Christmas presents for other people but...it does happen to be at the same time as Nordstrom 1/2 yearly and a Macy's Sale (yeah I know I know...Macy's is always having a sale).

And 2 things on my list:

1) Pair of black knee high boots that replace my amazing Via Spigas I had bought in NYC but are now 'out of date' according to the Style Gods.

2) A nice Hermes tote (but not Hermes but one that looks like Kelly bag please) that I can use as a nice big bag and laptop/papers when meeting with clients and that makes me look Money!!

I found BOTH!!!

And I got both on sale. Bags can be super hard to find at a regular price that I like, let alone on sale. This one, a Lauren by Ralph Lauren, was returned same day to Macy's and all I can say is I grabbed it as soon as I saw it. Almost like a natural reflex!

I got it for a ridiculous price. You know the kind: Already marked down and a further down on the One Day Sale thing.

Then at Nordstrom I really didn't think I'd find my boots on sale. But what the heck, right?

So I go to Salon Shoes and there they are on the sale rack that Nordstrom puts out for Anniversary and 1/2 yearly.

Again I reflexively grabbed them the minute I saw them.

I lovelovelove good quality leather that is buttery, well crafted, good detail...makes me swoon!

And I have absolutely no regrets about buying them, as I will use both for years and set out with them in mind.

(And yes I finished by Christmas shopping in the middle of all of that).