Wednesday, July 15, 2015

Met with an ELP

After finishing the Total Money Makeover, I though I would call up one of Dave's local ELP's (Endorsed Local Providers), just to meet and talk some figures on retirement, etc. It was a free consultation so I set up an appointment so i could touch base on where we are at and get some insights on my pension..

We brought in some financial statements and went over our goals and our 5 year plan with him, and while I was initially liking some of the things he was saying, I have to say I disagree with some of what he was saying in a major way.

Including our emergency fund, we have around 28k liquid at the moment. $18,500 is our emergency fund and our checking account padding -- the rest is our sinking funds (Insurance, Christmas, Birthdays, annual bills savings, and a few designated funds like vacation and medical.) Most of it is liquid for a reason-- because we will empty it at some point over the course of the year, but we probably have around $4k of it that isn't going to leave by years end.... but isn't money I would want to tie up quite yet. (1k is a tax buffer since my disability checks didn't have withholding, Another $1k is vacation,  and our $1700 our profit-share check)... yet, he was suggesting we "invest" these funds....

Then he seemed to think that pulling my pension at 55 was going to cause a tax event and penalties after he said he was familiar with Calpers and the teachers pensions. (it won't -- because I'll separate from the employer and take the monthly payments, not take the lump sum to invest because it has a survivor benefit so if I die, my husband continues to receive the payments and we will most likely make it beyond 67 years of age when the "lump sum" would be used up..)


So instead I came home and spent some time "re-balancing" my funds myself to put them in the 4 categories Dave recommends.


  1. The people that Dave endorses pay him to be endorsed. I'm glad you saw the light.

    1. Ya, I was hoping the advice we were going to get was going to match up better... but for now I'll be managing our investments.

  2. I have CalPERS retirement which started at age 56 (when I retired). You do have to withhold some money for fed/state taxes just like you would with a regular paycheck, but there's no tax hit because you retire and start pension before 59.5--that's for IRA's and 401 k,b's and whatever other initial there may be (403's, too?)