certified financial planner Archives

Previously, I had written about why I chose to stay part-time on the blog, wherein I delved into the benefits of working less than forty hours a week. Sometime in between the writing of that post and today, I got carried away by a desire to reach a goal of ours, at a FASTER pace. It was an all-consuming drive, not too far from the push resulting from a desire to own more. Needless to say, I was swallowed whole by this need, and for a while, it did control a part of my life. Yesterday was the day I said ‘Goodbye’ to that lifestyle on the fast track to disaster. I regained my freedom from the grind! I share my story today, because I believe that we can learn from each other’s mistakes. While Instagram, Facebook, and other social media outlets are there to highlight the best moments of our lives in tiny square boxes and endless scrolling pages, there is a sort of disservice that we do to each other by ignoring the realities of every day living. There, you will see the freedom from the grind, but here, you will read the story about how I got there, lost my footing, and then returned, once again.

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The Desire for More

Embedded in our culture is this desire for more. We want more things in order to satisfy our “needs”. We want more friends, in order to feel loved and complete. We want more achievements in order to be seen as “successful”. Having more, culturally, is a positive thing.

Two months ago, I became obsessed with an idea. It’s an idea that has been brooding inside my mind since I was a young child. Socially ingrained, it was a desire for both a physical object and a psychological concept: which was a desire for a home. Additionally, I was very adamant on achieving another dream, which was, to open a coffee shop. Both required adding more. More work, more responsibility, & more loans (ick!). Additionally, it required more means to fund these dreams. So what did I do?

I voluntarily decided to add an extra day at work. Actually, I insisted on an extra day of work, and my boss warned me that I would get burned out, but he was kind enough to let me figure it out on my own. It didn’t take long for the stresses of a five-day and six-day alternating work weeks took a toll on my life.

The funny thing about adding more, is that in reality, you end up with LESS. I had less time for myself, and if you don’t help yourself first, you will have difficulty helping others. I was able to spend less time with people I cared about, which then put stresses on some relationships. I had less to offer to my patients, since my tired brain and body couldn’t perform to the best of their abilities. I found myself being pretty conservative about treatment, which is fine and good, but failing to give them the alternative of doing more for themselves also has its drawbacks. I had less patience, and poor Mikey got the brunt of all of that. I had less inspiration, since I was so brain dead after work. I had less motivation, since my body just craved crawling into bed every night. Most importantly, I felt less like myself. There was a rigidness to my body, a robotic beat to my motives, and a hollowness to my being.

What you see on Instagram are pictures of our adventures, accomplishments, and hobbies. What you don’t see (what we NEVER see) are the difficult moments. The nights of crying on the floor. The burning desire and the anger for anything that falls short. The zombie-like walk through the house. The frustration of having to do chores. The mindless decisions we have made. The resentment one starts to feel for their work. These are things we never say. And why would we? People will start to think less of us.

After two weeks, I knew it was bad news bears. But I also knew that I had asked for this. So Mike suggested I try it for four weeks more. At three and a half weeks, I talked to my boss. Earlier that week, I had finished a day of work, only to realize at the end of the day that I had not diagnosed anything. “Observe, observe, observe.” It was a sign that I may have subconsciously been telling myself that I can’t add anything more to my plate. The next day at work, I had difficulty doing simple things. Extractions that should have taken ten minutes took thirty. Kids that I usually am able to do well with were crying. Inside, so was I. By Wednesday, I realized that it was really a mess. It dawned on me that I had not paid rent, which was due the day before. I have never missed rent in the entirety of my adult life. On Thursday, I asked for a day less. My boss, all knowingly, said he thought that was better for my health.

Having more is sold to us as something AMAZING! But is it really so?

The Benefits of Less

On the flip side, having less is seen as not so desirable. When I wrote about Intentional Living: Create Empty Space, I touched on our discomfort with emptiness, and our desire to constantly fill that emptiness. We are raised to “not settle for less”. But having less is arguably much more important than having more.

Having less gives you the freedom to pursue things that you want, or need. Having less gives you the space to create the lifestyle you want. Freedom from the grind restored a healthy balance to my life. I gained back so much of myself that I lost to the rigorous hours. I had a weight, that had just as much a physical impact as a mental and emotional one, lifted from my bony shoulders. I restored a healthy relationship with my husband, who I had been turning to every single day to pick up the slack that I had brought into the relationship due to my extra day of work. Most importantly, I feel as if I can breathe again. It’s important to take a step back and ask the question, “Am I working to live, or living to work?”

I asked for the extra day to work in order to live the life I want. Namely, in order to get a home and have a coffee shop. Ironically, the result was me giving up the life I want (namely, a slow, mindful and intentional life style) in order to work.

Restoring Balance

By taking away the extra day of work, I pretty much am re-instating my previous lifestyle. I am also setting aside that dream of opening a coffee shop. I was obsessed with opening a coffee shop by the following year, but I now realize that slow and steady wins the race. The dream of a coffee shop will have to wait for a few years. However, there are also exciting news ahead! We are currently working on securing a live-work loft in our community!! Our ideal place has always been a loft. Even before we got married, while we were still dreaming up our future life on an Ikea bed with bed bugs in a house infested with termites, we both said that a loft was our ideal space. We have been living in our current one for over two years now, and we love this community and this space. We found a neighboring one that is being offered for sale. So we are putting an offer, like, today! It has a business space on the first floor, which you know, is fantastic for any future business endeavors we choose to do. Meanwhile, our beautiful roomie has decided to stay (we want to keep her as long as we possibly can!), and that’ll still continue to be a win-win co-housing relationship. We are so excited for the future ahead. If everything goes through, we will have a loft, a home, a business front, and a beautiful roomie. All of this on top of paying down the massive student debt in ten years! So please, keep your fingers, toes, legs, arms, eyes crossed for us!

Lastly, we couldn’t have achieved any of this without:

This post may contain affiliate links. Please see my disclosure to learn more.

Today, I wanted to pose the question, “Is having a CFP right for you?” When I first graduated from dental school, I was absolutely lost. Along with the feelings of excitement and pride with my recent accomplishments came a subtle (but over-powering) dread, and a very heavy, invisible weight. I knew I needed guidance, but did not know who to reach out to. I did not exactly have adults in my life who could act as good financial role models (my long historical relationship with money detailed here), and there are very few people I know (outside of my fellow graduates) who really had the problem of paying down half a million dollars in student debt at 26 years old. So I reached out to Andrew Davis, the CFP behind SeamlessFP, who happened to be the husband of a dental classmate, and whose work focused on guiding newly-graduated dental students, specifically. I think it was the best decision we ever made.

On the flip side, there are people who would argue that CFPs are a waste of money, and that money could be used elsewhere. Which is a fair argument. I myself am a big fan of avoiding outsourcing tasks as much as possible. It will take a bit of work, but handling your own finances is totally a doable thing! However, it requires time, which I have value over money. Delving into research isn’t such a scary thought for me, but spending all my free time learning the nuances of taxes, S corporations, estate planning, investments, and more is NOT an enticing thought. So what I want to discuss today is the value of having a CFP to us, and then I leave the decisions to you.

The value of having a CFP

The list of pros for having a CFP versus not having one is quite long, which is a good thing!

Pro: Outsource financial planning to free up time, in order to pursue interests, hobbies, work, etc.

As mentioned before, outsourcing financial planning frees up a lot of our time. Time is a resource scarcer than money in the modern world. People seem to always be running out of it, but are still quick to occupy it with tasks, necessary or otherwise. When you think about how much your time is worth, in dollars, can you really put a price to it? Time is the one thing you are constantly running out of, and will never be able to replenish, making it an extremely valuable resource. Being intentional with the tasks I choose to occupy my time is very important to me. Spiritual uplifting, emotional replenishing, mental healing, these are the things that matter and make it a life worth living. NOT constantly worrying, thinking, and dealing with money.

Pro: Peace of mind that we are hitting our financial goals in a very step-by-step (and legal) manner.

This is for the DIYers out there. I am a lover of DIY projects and take pride in my ability to be self-sufficient. However, no matter how much of my free time I put into studying the nuances of finances, I cannot possibly keep up to date with the ever-changing rules and regulations. Mike used to do his own taxes with TurboTax and that worked sufficiently well, but once we got married, added in an S-Corporation with its own separate payrolls, well things got too complicated. We started asking ourselves, “How do we know we are following all the rules? How do we know about the fine-print clauses that benefit us? Who will be flagging our attention with every change?” A financial planner gives us peace of mind, knowing that we are on track to hit our goals in a efficient (and legal) manner. There are many minute details that one could miss, but it makes us feel better knowing that we have someone else helping us with that.

Pro: Keep up to date with new changes.

The new Tax Bill that passed last year is a great example of this. Even now, nothing is quite set in stone as to how these changes will apply to us. By having a financial planner, we were alerted to the possible beneficial change for S Corporations in the upcoming year, something we would never have known, but definitely can impact our financial plan.

Pro: A resource for learning more.

This, by far, is the most beneficial to me. Andrew has been instrumental in educating us about our finances and different paths we can take to achieve financial freedom. He has recommended books, blogs, podcasts, and other resources. He was actually the one who introduced us to the FI community: a community dedicated to reaching financial independence by using life optimization “hacks”. We would not have gone so far on our financial road to freedom without life hacks such as co-housing, travel hacking, YNAB, and more!

Financial planning VS Investment Planning – What’s the difference?

It is important to differentiate between financial planning and investment planning. We do financial planning, which requires a long-term life plan, created by the marriage between our financial past and our dream futures. Our first meeting with Andrew was not something we expected to have. It began with a meeting dedicated wholly to gaining a deep understanding of our personalities, goals, and dreams. It almost felt like a therapy session, with questions such as, “If you knew you were going to die tomorrow, what would you spend your time doing today?” Don’t let that deter you. I think that first meeting was essential to setting the foundation on which we created our entire plan. The process continues to be a constant reassessment of life. Initially, we listed our priorities as traveling, buying a house, yoga subscriptions, guitar lessons, sticking with loan repayment program, and working until we were 65 years old. Now our life still includes travel, but our goals have shifted to standard repayment, renting for the next few years, working less hours, being a blogger, opening a coffee shop, and early retirement from our lines of work, which would possibly lead us to newer lines of work. In this respect, Andrew acts as more than just a financial planner. He is a psychologist, therapist, educator, mediator between spouses, confidant, & friend. This is NOT to be confused with investment planning, where someone advises you where to invest your money. That is included with financial planning, but not the other way around.

The importance of being a fiduciary

A fiduciary requires that someone acts in the best interests of a client. It is important that your CFP is a fiduciary in all aspects. Conflicts arise when CFPs have affiliations with third parties that may sway their advice towards promoting something that benefits them. For example, a person can receive a profit for selling an affiliate insurance. The insurance may be great, however, that person has a motivating factor that would make him want to promote that particular insurance. Even though it can be beneficial for you to sign up with that insurance company, the decision was not completely unbiased. We did not even realize the importance of being a fiduciary until we learned the concept from Andrew himself.

If you are not sure whether your CFP is a fiduciary, ask! Try to find a fiduciary in all aspects. You want to ensure that you are being treated fairly at all times. Do not be afraid to ask how they get compensated, so that you can truly see where they are getting their money. It may seem awkward to inquire about it, but it is your finances on the line.

What a CFP has done for us, so far

Budgeting Help: Our CFP introduced us to budgeting, setting up our YNAB budgeting tool, and helped us develop good budgeting habits.
Analysis between two potential jobs: When Mike was considering making the move from one company to another, we needed help analyzing whether it was a reasonable financial move. It was not simply a comparison between the two different income, but also required factoring in 401k investment matching, health benefit options, life insurances, difference in commute, and level of interest in the line of work.
Investment Planning: He has given us advice on how to manage our 401k portfolios as well as given us other investment tips when we reach out for help. We retain full autonomy as to where we want to invest and how much, but having a third person to go over the pros and cons at each step has been helpful.
Health Benefits: We needed help deciding on a health plan, and have chosen one that works well for us thanks to Andrew’s help. After an analysis of our options, an HSA option was also open to us, and we decided to take advantage of that privilege.
Renter’s Insurance: Prior to our new place, we did not have renter’s insurance. After seeing the benefits of having that extra coverage at a small monthly cost, we decided to sign up for one right away!
Connection to a CPA: Taxes for SCorps can be a bit tricky. A CPA is advised so as not to miss a thing. Initially, I was going to go with the same person my parents have used for years. But after an hour-long interview with him, it became clear to me that he did not know much about taxes as they applied to dentists specifically. He did not even know about the different student loan forgiveness programs, or how an SCorp can be used for tax deductions. It was useful to be referred to a CPA who frequently does taxes for dentists specifically.
Set up my SCORP: This was so beneficial to me! It is possible to create a corporation easily online, however, he walked me through the pros and cons of having an SCORP so that I could make an informed decision as to whether this is something I wanted to do. The application for the SCORP was easy but we did meet some humps along the way that he quickly helped me to resolve.
Setting up Gusto and ways to automate my SCORP: Once the SCORP was set up, our CFP took care of creating an automated payroll for me. We use Gusto to manage my payroll, and once it was set up, he easily walked me through the different ways that we can keep track of the payroll via my SCORP. All I have to do is wait for my payments, the system takes care of the rest!
Introduction to financial life hacks: I learned tricks such as travel hacking from Andrew and it was he who introduced us to the FIRE and FI communities.
Analysis of student loan repayment options: This is the part about our finances that has most affected our lifestyle. He walked us through the different student loan forgiveness programs that we qualified for. After a thorough explanation of each, he created an extrapolation of our financial futures under each repayment option. By using physical numbers, we were able to predict the lifestyle changes associated with each student loan option. Once we had our budgeting in order, he brought to our attention that we were able to pay down student loans without the forgiveness program, thus saving us more than $100,000 in the long run, as well as buying our freedom 15 years earlier than planned. That decision itself was so life-altering for the better, and we would have never gotten to that point on our own.

We personally benefit from SeamlessFP

Andrew Davis is the CFP behind SeamlessFP. He focuses on helping newly graduated dentists create a financial plan. He does work with non-dentists occasionally, or dentists who have been practicing for a long time. I only know this because we have referred people in those categories who now are working with him too.

There are multiple options one can choose when working with SeamlessFP. A person can do a one-time consultation in order to gain help on a particular goal or project, or they can choose the full life-planning package. We chose to do the latter option. I did not want help with simply setting up an SCORP. I wanted a more thorough analysis of all of our financial details. I was determined to tackle as many aspects as possible to optimize our financial situation. After every meeting, he will upload a list of tasks via an online portal to be completed. This is helpful for people who need someone to hold them accountable to ensure that they continue moving forward with their financial path. Together, we re-analyze continually to see what we can change to optimize even further. A yearly re-cap meeting is held as well, where we go over our dreams and goals for the future (5, 10, 25 years out) so that we aren’t dully following a pre-set path. Besides, a lot changes in a year!

What I like most is that he is eager to help clients learn more about their financial options and situations. It is clear that having his clients make their own decisions (given the facts) is important to him. I can ask him one question, and we will go over the entire topic in detail, prior to him answering my question just so that I know the reasoning behind his answer. It’s scarce to find that these days, and I wholly appreciate it.He may give suggestions but he really makes sure you know that ultimately, the choices are still completely yours to make. It’s easy to see that his goal is to help his clients find the happiness they seek, by eliminating financial stress from the equation. It also helps that he is very accessible via email or text. Typically, responses occur within one day. Additionally, if you choose the latter option, there is unlimited access. Anyone who knows me will easily tell you that I am the type to ask multiple questions, always in search of a deeper understanding of all things. So a CFP who embraces that is gold. Off course, you want to make sure that the CFP you choose is right for you, if it’s right at all. If you have any interest in learning more about our friend Andrew, you can easily set up a one-hour phone call to speak with him and see what services he can offer you and which package is best for what you are trying to achieve.

Overall, I just wanted to shed light on how a CFP has changed our life in this blog post. As always, you do you.