russ[at]russ.net (Russ), you asked:

<< <I> I'm trying to find my wife and I a financial planner, and am not sure
where to look or what to ask. I've always heard that it's a good idea
not to find someone that has you invest in certain funds that they
will make commissions off of, but instead to find someone that works
on a fee-only basis to make good financial recommendations.</I> >
While using the services of someone who makes commissions off of you is not a
"bad" thing (it simply something one should take into consideration when
weighing the value of any planning one may be getting), a fee-only planner is
simply more likely to provide you with more options. Also, keep in mind that
"Financial Planning" is a PLANNING process that's really not about what to buy
or sell.

A Financial Planner may be, and often is, directly involved in investment
advice/sales or advice about insurance sales, but the "planning" is really
separate and done before one is involved with things that may involve
commissions. Those planners involved in receiving commission are usually more
affordable than fee-only planners. So, if you want a fee-only planner, it's
going to take some effort to find one you can justify the cost for whether it's
fee-only or through commissions that the planner get paid. You, as a consumer,
simply need to stay aware of just what you're dealing with and whether there is
any value to you in what you're getting.

For affordable non-commission financial planning, I feel the following site is
a good resource:

http://www.discovergarrettplanningnetwork.com/

<< <I> My wife and I make a combined income of about 94k, and we're working
on having our first child (trying). I don't know if I'll be able to
afford child care, because it seems like we always live paycheck to
paycheck. We have only a few hundred dollars left on credit cards,
and only $4000 on a car loan. I'm working on cutting back on eating
out, once I found out we're spending $150-$200 (thanks MS Money!) a
month on eating out. So i'm trying to figure out if it's better to
have my wife be a 'stay-at-home mom' when she finally does get
pregnant, or what. She currently pays all utilities and I pay the
$1250/mo house note, and $300/mo car payment. I'm the bread winner
out of the 2 of us (I make almost 3 times what she makes) so I figure
with a $800/mo child care payment, her salary would be a wash. I'm
also putting 10% into my 401(k) and she's putting around 4% into hers.</I> >
I'm always a little surprised by some of the comments like you've gotten over
the numbers you've shown. Such comments tend to come from their own view from
where they are. While that kind of income might represent being in the upper
5% of the world's population, it doesn't mean one is able to live a high living
standard for the particular area you live in. In the area I live in, your $94k
is just barely enough to live a comfortable life style . . .particularly for a
family. And on a single income of about $70k - $75k, which you are
considering, its VERY hard to live that comfortable life style. In fact, you
probably wouldn't be able to quality to buy an average 3 bedroom 1 bath home in
this area.

So, if you live in an area like I do where it's really expensive to live, just
remember that many in other parts of the country will look at your numbers and
shake their heads wondering how someone with such great income can be just
getting by. Oh yes, you could move to where it's cheaper, but then . . . the
income is likely to be much lower too, right?

In any case, from what you've said and the numbers you've presented here, I
tend to agree that the cost of childcare and you're wife's income is close to a
wash. There are other issues to. For example, whether or not your wife
actually likes and wants to be the homemaker. Or does she like and prefer
being out in the work force? Questions should be answered and priorities set
with regard you and your wife's feelings about having a parent at home to raise
a child vs. having two working parent with child care. Just what kind of
lifestyle do the two of you want? The key is getting your priorities set the
way you and your spouse wants them and then plan around those priorities.

<< <I> Anyway, how do I find a good financial planner, and what should I look
for, and does anyone have any recommendations for me financially??? </I> >
Get a hold of a couple personal financial planning books and read through them.
You can find them either in a good book store (Barns & Nobel or Amazon.com) or
at the library. This is a particularly good place to start even before you
might actually look for a good financial planner. Not only will you get some
good ideas that might be applicable to you, but you learn more about the
planning process which can be a great help when actually working with a
financial planner. If you can find it, one I feel is particularly good and you
should get a hold of is Ernst & Young's Personal Financial Planning Guide.

One very important thing to do before you start a family. . . . get your e-fund
(Emergency Fund) fully funded (6 months living expenses, preferably) before you
have any children. It'll make life, particularly your financial life, much
easier.

"Russ" <russ[at]russ.net> wrote in message
news:a586d8cf.0310161704.aafd101[at]posting.google.com...
- quote -

Since your question, really seems to be more opinion seeking, I will drop my
$0.02 in the bit stream too. Hopefully, you will find it helpful.

I don't mean to belittle... but with $94K income and no major debt other
than a $1250 mortgage and $300 car note, you should easily be able to make
ends meet, save, and provide a lifestyle that would be phenomenal to more
than 95% of the world's population! As you mentioned, you are monitoring
your expenses so you are definitely on the right track. Make a budget based
on the lifestyle that you and your wife demand, evaluate it to determine
feasibility, adjust to meet your desires regarding child care vs.
stay-at-home, and stick to it. It really comes down to a cold-hard
evaluation of the income potential that you each bring to the table and
comparing that to the impact of staying at home with your child/children
(you never know when you might wind up with multiples)! Don't forget to
think about the long-term effects and the potential to take advantage of
things like new tax rules that come into effect when you have children.
Perhaps your employer(s) offers Child Care Reimbursement account(s). Don't
miss out on these types of benefits if they are available to you. Also start
thinking about your wife's retirement planning on par with thoughts about
your own. If you are the lion-share bread winner, why is that you are saving
10% while she is only saving 4%? Seems like the other way around would make
sense... unless there is some matching benefit that you would lose out on by
shifting it around.

As far as your concern regarding whether to have one of you stay-at-home
with the new child, I vote to bite the bullet and stay home. Assuming that
you can both deal with it and accept the value that you each bring to the
relationship during that time. In our case, my wife loves to work (outside
the home). She took off for a couple of years, sacrificed her career
objectives for the time being, and stayed at home with our children from the
time they were born until they were about 2.5 years old. Until they were two
years old, she stayed home with them full-time. I gave her a break every
chance I got and tried to carried the load on the weekends (the nature of my
work requires some travel so I was gone occasionally). At the 2 year point,
she started to get the itch to go back to work. By 2.5 years, the twins were
well adjusted to the concept of going for longer periods of time for care
without mom or dad... Tot Drop and a part-time home care with a day-care
provider helped with that part. We don't have family close-by so that was
not an option for us.

They are almost three years old now and we feel like the process has worked
for all of us. They are in full-time, 5 days x 10 hours, daycare and we have
all adjusted to the new routine. We fell like the time spent with them early
on was well worth the cost paid in lost wages. My wife is back in the
work-force and has grown her career potential and enhanced her positional
responsibilities. Even in this hard economy, she had no problem finding a
great job in a field she loves. I truly believe it is 90% attitude when it
comes to finding and loving a job! The children are very well adjusted. They
are courteous, kind (they help each other, us, and other kids), friendly,
obedient (for-the-most-part), potty-trained (first in their class), and
fun-loving... not always in that order ;=)

Hope this helps,
Chip

On Fri, 17 Oct 2003 03:56:14 CST, russ[at]russ.net (Russ) wrote:

- quote -

Your question is the type that elicits lots of opinions, so I'll just
comment on your last question.

Before getting pregnant, bank her check completely for 6 months. No
touchee for any reason. Do everything on a cash basis - no consumer
credit. Oh, and from your paycheck now start banking $125/month to
approximate a college fund and continue doing the max in your 401k.

At the end of 6 months you'll have a rough sense of what her staying
at home feels like, and the choices you'll need to make. THEN decide
about pregnancy and her staying home.

-HW "Skip" Weldon
Columbia, SC

In article <a586d8cf.0310161704.aafd101[at]posting.google.com> , Russ
<russ[at]russ.net> wrote:

- quote -

A financial planner typically focuses on investments, savings plans,
insuarnce, and retirement. I am not sure that the questions that
you have are in the scope of what a financial planner normally does.

It sounds like you are on the right track. You found a major source
of money leak, and you are working to correct it. But to be honest,
you are amoung the richest people who have ever walked the face of
the earth with a $94K annual income, so you should be awash in funds.
If you are living paycheck to paycheck, you have other major funds
leaks, and you need to work to find them and fix them. First, a
written budget will help you get back on track. Second, write down
everything you spend for a month or two, and see where it all goes.

To answer your childcare/wife issue, about all you can do is sit
down and pencil it out both ways. I am willing to bet that the money
issue is nearly a wash, so the quality of life becomes a bigger
decision point. In the mean time, since you need some extra income,
consider having your wife work in the evening while you are home
and able to do the child care. This will be the best of both worlds,
you will have the extra income to knock down the remain debt, and
not have to pay the $800/mo child care to get it.

As far as planners go, first, do some reading. At least get an
understanding of what the questions are, and what types of answers
are typical. Then, check the yellow pages and ask friends for
names and phone numbers. Interview a few planners. Consider a
fee-only planner or two, consider one of the smaller chains,
consider one of the majors (AM/Ex, Merrill Lynch), and consider
a few of the discounters (Vanguard, Schwab). Somewhere you will
find the right balance of cost versus the amount of hands-on help
that you need, and the range of services that you need.

Finally, when you get some suggestions, post back here and run
it by the group.

Some items to expect to need to answer are:
- term life to protect the kid
- disability to protect your income
- retirement planning
- tax efficiency
- non-retirement money mangement and savings

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

- quote -

This always just gauls me. The decision to have the woman save less for
retirement makes little, if any, sense. She makes less money and, if social
security is still around, will have a smaller check. Yet she'll probably
live longer and have greater need. 10% of her income will always be less
than 10% of the man's greater income, why can't she at least defer the same
percentage? (Sorry for the rant, this wasn't your question.)

- quote -

What do you expect from this financial planner? What is it you need planned?

Elizabeth Richardson

I'm trying to find my wife and I a financial planner, and am not sure
where to look or what to ask. I've always heard that it's a good idea
not to find someone that has you invest in certain funds that they
will make commissions off of, but instead to find someone that works
on a fee-only basis to make good financial recommendations.

My wife and I make a combined income of about 94k, and we're working
on having our first child (trying). I don't know if I'll be able to
afford child care, because it seems like we always live paycheck to
paycheck. We have only a few hundred dollars left on credit cards,
and only $4000 on a car loan. I'm working on cutting back on eating
out, once I found out we're spending $150-$200 (thanks MS Money!) a
month on eating out. So i'm trying to figure out if it's better to
have my wife be a 'stay-at-home mom' when she finally does get
pregnant, or what. She currently pays all utilities and I pay the
$1250/mo house note, and $300/mo car payment. I'm the bread winner
out of the 2 of us (I make almost 3 times what she makes) so I figure
with a $800/mo child care payment, her salary would be a wash. I'm
also putting 10% into my 401(k) and she's putting around 4% into hers.

Anyway, how do I find a good financial planner, and what should I look
for, and does anyone have any recommendations for me financially???