Now Taking Suggestions

The theme of this year for me is getting out of survival mode, and I have dubbed 2008 as the "Year of Achieving Financial Solvency." Business is pretty good at the moment, and I have begun saving and chipping away at my credit card debt. However, my current retirement plan is to die young. I have begun to think that this might not be a good idea. Since I am self-employed, I don't have a 401(k) or pension or anything, so I think that having a sit-down with a financial planner-type person is probably an excellent idea.

I'm doing my own research on the subject, but in the interest of being thorough, if any of you have any suggestions for finding a good financial planner and questions I should ask in an initial meeting, by all means, make a note of them in the comments section. I'm looking for someone who won't look at me like I have two heads when I say that I want to be socially responsible in my investments, so if there's an ethical investment network somewhere, it would be great if you could point me in their direction. (It would also be nice if said individual wouldn't take a look at my current paltry retirement portfolio and immediately assume that I must be an idiot. Possibly that is too much to hope for.)

I'm also open to suggestions for any good books on financial planning, saving for retirement, and getting your financial act together generally.

Comments

[Judy]

If you google "ethical investment usa" you will find the Miranda's Beach website, which I've heard about before but am not sure in what context - it may be that it's because they're charlatans. :-) However, the Methodist Church has been into ethical investment for over a century, so you might like to have a look at whether they have anything to offer.

[Jamie Hollis]

If you were ever a dependent of someone currently in the military or a veteran then you are eligible for USAA, an absolutely great banking and insurance company that also provides free quality financial advising. If you're eligible just google USAA and you'll find their website.

[HSY]

I skimmed Smart Women Finish Rich by David Bach and thought it had some good basics. We have an adviser in Evanston whom I really like... let me know if you want her contact info to talk by phone. I asked about socially responsible investing and learned more about that this year.

[Heidi Renee]

My only advice is to use someone who's not trying to sell you anything.

[Barb]

My husband is now an Edward Jones rep and I am so impressed with the company. They actually don't make as much as other reps of other companies because they want to do the best for thier customer. If you go with another company make sure, for instance that you are put into "A" class shares and not "C" shares. (whatever that means) the Rep that you talk to will make more on "C" shares but you will do better in the long run with "A" shares. This is just one way to guage what is happeneing. I know my husband has opened accounts of only 500.00 for people and not rolled his eyes. Anyone who does - walk out. If you want to talk to my husband and just get some free advice, you can email me from my webblog.

[Ron Robins]

Great to see your interest in socially responsible investing! I've been following the subject for around forty years. You might want to look at my website. It covers the latest global news and research pertaining to socially responsible investing. Many say its the best on the web for all around info.

It's at www.investingforthesoul.com

Best wishes and good luck, Ron Robins

[Philip]

Before seeing a professional financial advisor, make sure you have done the following:

1) Put 3-6 months (depending on comfort level) of income in a savings account for your emergency fund.

2) Pay off your credit card debt! Most credit cards have around a 17% interest rate while the stock market 30 year sliding average hovers around 7%.

3) Know the difference between a Roth and Traditional IRA. You'll want to put your money in a Roth.

4) Look into the loaded rates for any investment group you go with. Sometimes, local credit unions with money market accounts can actually do better.

Remember, in the end, it is really pretty simple math, and I know you are good at that (though you might not like it too much.)

Oh, and I use USAA and they will definitely tell you to do #1 and #2 before even considering investing in any form of retirement account.

[hadashi]

first of all, you're no idiot -- the fact that you want to have any sort of savings plan means you're NOT.
i highly recommend a book called "Get a Financial Life" by Beth Kobliner. it's easy to read, super practical, and makes money a lot less scary/distasteful/mysterious. plus, when you're done reading it, it's a great reference book to have around. just make sure you get the updated edition.
with all respect to Philip, even if you have credit card debt or no emergency fund, you should still immediately start a Roth IRA if you haven't already. because it's an account that is tax-free (!!!) and relies on long-term growth, even a small amount will be multiplied by time -- so the sooner you get some money into it, the better.

[Philip]

Hadashi -

Believe me, I'm fully aware of Christy's intelligence level.
I've known her for a very long time.

As far as your information on IRA's, you're not being exactly accurate.

Traditional IRA's are tax free on the front end, meaning you get to deduct the installment from your taxes that year, but any withdrawals are taxed when you retire.

Roth IRA's require you to pay taxes up front on your installments but any withdrawals after retirement are tax free.

Either IRA is just a tax shelter, just like a 401(k) or a 529. Their earnings are based upon where you invest the money.

That being said, no matter which IRA you invest in, the earnings will probably not exceed the interest on a
credit card.

[Christy]

Thanks for all the suggestions everyone. I will take them under advisement.

[ryan]

Mennonites: http://www.mma-online.org/c.aspx?id=749

Also, google "double bottom line". It's a nice phrase to throw around when you're looking into socially responsible investing.