I’m in a bit of a financial pickle and could use your expertise. I’m about to become a dad and want to make sure I’m on the right track. Here’s the scoop:
My Deets:
- I’m 30 and sitting on around $2M
- Bringing in about $400K/year from my biz
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No credit card debt and a sweet mortgage deal at 3%
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Car payment is a business expense
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Living lavish on food and travel
Breakdown of My Riches:
- $1M cash in the biz
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$600K in home equity
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$140K in Robinhood (ouch)
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$80K in a managed portfolio
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$180K in crypto (yikes)
About My Wife:
- She hauls in $140K/year
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Not great with dinero, but we’re working on it
My Dilemmas:
- Thinking about rental properties, but time is scarce
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Best returns from reinvesting in my biz
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No retirement plan or 401K – baby on the way
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Need to make my cash work smarter
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Daddyhood got me rethinking risks
My Qs:
- How can I score some passive income with minimal effort?
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Should I set up a retirement plan pronto?
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Help me get a grip on my investments, especially the wild ones like crypto and stocks
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Rental properties – worth the hassle?
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Any other smart money moves as I step into parenthood?
Your wisdom would mean a lot. Cheers!
Response from THE MONEY MINDER:
Hello there,
Hello,
Congratulations on the exciting news of soon becoming a father! It’s great that you are proactively seeking advice and feedback on your financial situation as you prepare for this new chapter in your life.
Based on the details you provided, it’s evident that you have a solid foundation with your net worth and income. However, there are a few areas that could benefit from some strategic planning to ensure long-term financial stability, especially with a baby on the way.
Firstly, I recommend focusing on setting up a retirement plan or 401K as soon as possible. This will help secure your financial future and provide you with a safety net as you navigate parenthood. It’s essential to prioritize this to ensure you are financially prepared for the long term.
In terms of generating passive income, consider options like real estate crowdfunding, dividend-paying stocks, or peer-to-peer lending. These can be relatively low maintenance and could provide you with additional income streams without requiring significant time commitments.
When it comes to managing your investments, particularly the riskier ones like crypto and stocks, it’s essential to diversify your portfolio to minimize risk. Consider working with a financial advisor who can help you develop a sound investment strategy that aligns with your financial goals and risk tolerance.
Regarding rental properties, while they can be a profitable investment, given your time constraints with your business and impending fatherhood, it may be challenging to manage them effectively. It would be best to assess whether the time and effort required to maintain rental properties align with your current priorities and commitments.
As you prepare for fatherhood, consider creating a solid financial plan that includes an emergency fund, life insurance, and estate planning. It’s crucial to protect your family’s financial future and ensure you have a safety net in place.
In conclusion, it’s commendable that you are proactively seeking advice and feedback to secure your financial future as you prepare for fatherhood. By focusing on setting up a retirement plan, diversifying your investments, and prioritizing financial stability, you can lay a strong foundation for your growing family.
All the best from THE MONEY MINDER. Feel free to reach out if you have any further questions or need assistance. Good luck!
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