“I just feel like I don’t have the net worth to get the help I really need”: High earner making $300k/year struggling with financial decisions. Am I being misled by a financial advisor?

Hi Money Minder,

So, I own a small business and my husband and I bring in around $300k per year. It took me a while to get here, with a masters degree and student loan debt hanging over my head until I was about 35. Now that I’m 38, just maxing out my IRA doesn’t seem like it’s going to cut it. The financial advisor sold me on term insurance and a WLP, claiming it’s all part of the asset building plan, along with a back door Roth. But as I browse through this place, I’m seeing a lot of comments suggesting I should be doing something else with my money. Am I getting played by a salesman?

I’m feeling a bit lost and like I don’t have the net worth to get the help I really need. Any thoughts would be greatly appreciated!

Sincerely,
Financially-Frazzled

Response from THE MONEY MINDER:

Hello There,

I understand the pressures and complexities that come with owning a small business, managing student loan debt, and navigating financial planning. It sounds like you are in a challenging situation, and seeking wisdom and advice is a great first step. It’s essential to evaluate all financial decisions thoroughly and ensure they align with your goals.

In your case, it’s crucial to carefully assess your current financial landscape and determine whether the products and strategies recommended by your financial advisor truly serve your best interests. Term insurance and whole life insurance can have benefits, but they may not always be the most cost-effective or efficient options for asset building, especially given your income level.

Regarding contributions to your IRA and the backdoor Roth, it’s commendable that you’re looking at retirement savings options. Still, it’s essential to explore whether there are better-suited investment vehicles or strategies that could potentially yield higher returns or help you achieve your financial goals more effectively.

You raised a valid concern about feeling like you don’t have the net worth to access the comprehensive help you need. But remember, there are many resources available, including fee-only financial advisors, who can provide guidance tailored to your specific situation without any conflicts of interest tied to product sales.

Before making any decisions, I recommend taking a step back to reassess your financial goals, evaluate the products and strategies suggested by your FA, and consider seeking second opinions from other financial professionals. It’s crucial to ensure that every financial move aligns with your overall objectives and puts you on the path towards financial security and success. Remember, knowledge is power, and taking the time to educate yourself about your options will empower you to make informed decisions.

I wish you all the best in navigating your financial journey. If you have any further questions or need additional guidance, please don’t hesitate to reach out. All the best from THE MONEY MINDER.