Posted 11:21 AM by Blah blah

Financial Planning

I went to see a financial planning team yesterday. The company had called me up asking about life insurance, and when they found I was too young for it, they asked if I needed some financial planning. I jumped at this question. It was perfect timing, because with all the changes in my life recently, I DO need to organize my finances and figure out the best way to use and grow my money. I want to understand investing, taxes, and money more seriously and become more financially disciplined.

My advisers are two guys. One is an older guy who knows about retirement, wills, trusts, etc. He used to have his own clients and has established enough of a reputation that he gets all of his work from referrals. The other is a young guy my age who worked at Solomon Smith Barney advising people on stocks and other investments. He has helped people who were starting companies. When he heard about the business we want to start, he encouraged me to join the Monte Jade Science and Technology Association. They have their dinners at Ming's in Palo Alto. Christine is involved in Monte Jade, I recall. Their mission is to "promote the cooperation and the mutual flow of technology and investment between Taiwan and the U.S....The Association creates social and technical opportunities for professionals and corporations at both sides of the Pacific to share their valuable experiences in research, investment, and business."

They were really friendly and instructive, telling me that, considering the lousy economy, I've actually saved up more than many people my age around here. They asked how much I ideally would want to save out of a regular income. When I guessed "uh...75%?" They laughed and said 60% is the max most people save. After leaving their office, I felt energized and more confident. I need to comb through all my financial statements and meet with them again.

Here are some of my financial goals:

1. Invest more wisely---both: 1) try to grow my money through some market risk and 2) invest in a safer long-term pattern as a hedge against a bad economy.
2. Learn more about financial strategies and tax law for someone who is starting a business.
3. Save enough to fund an MBA degree and other education I may need.
4. Save enough for a better loan deal when I buy a house, as well as planning a strategy that ensures continual mortgage payments. According to a real estate agent I know, the amount of people defaulting on their mortgage payments in Silicon Valley shot up this year, causing them to lose their homes! Sad.
5. Save enough for being able to support my future wife's mom or dad (if necessary) when I get married. The Asian tradition. I'm not sure about living with TWO parents, though. And I definitely would NOT want to live with mine. But in case she would like her mom or dad to move in, I need to be ready.
6. Save more to take trips around the world. Go on more vacations.
7. Learn more about financial accounting, investments, taxes, and money in general. They recommended I read the Investor's Business Daily and Wall St. Journal to stay regularly informed. Think about things like saving for my future kids' college education.

Whew...I'm glad they pushed me to think seriously about these issues. It's about time. I'm gonna get a financial software package like Quicken and start making personal budgets. Raymond the capitalist! YEAH!