Firm:
Ruedi Wealth Management
Job Title:
Financial Advisor
Biography:
David Ruedi, CFP® grew up in Champaign, Illinois and attended Miami University in Ohio, graduating with a degree in finance in 2013. Upon graduation, David moved to Austin, Texas to work in the financial advisor services department at Dimensional Fund Advisors. He joined Ruedi Wealth in 2014 and earned his CERTIFIED FINANCIAL PLANNER™ certification in May of 2016.
In addition to his role as a Financial Advisor, David also serves as Vice President of Ruedi Wealth, overseeing company operations to ensure they deliver the best client experience possible. David is a regular guest on Paul Ruedi’s "On the Money" radio show and contributor to the Ruedi Wealth Blog. He currently lives in Champaign with his wife Amber.
Education:
BS, Finance, Miami University
Assets Under Management:
$235 million
Fee Structure:
Asset-Based
CRD Number:
6245920
Disclaimer:
No client or potential client should assume that any information presented or made available on or through this website should be construed as personalized financial planning or investment advice. Personalized financial planning and investment advice can only be rendered after engagement of the firm for services, execution of the required documentation, and receipt of required disclosures. Please contact the firm for further information.
There are numerous sources of information out there, which can make it difficult to know where to begin. For new investors, I usually recommend the following 3 books: “The Investment Answer” by Dan Goldie, “The One Page Financial Plan” by Carl Richards, and “The Behavior Gap” by Carl Richards. Each book focuses on a different component to successfully managing your own finances.
The Investment Answer is a short book focused specifically on investing. You can read it in a few hours and learn everything you need to know to have a successful investment experience.
The One Page Financial Plan is more financial planning oriented. Another relatively short read, it will teach you what you need to know to develop a financial plan that guides your investment portfolio.
As the name suggest, The Behavior Gap is focused on the emotions and behaviors that cause so many investors to sabotage their financial plans and investment portfolios.
Reading these books will provide a very solid foundation that you can continue to expand upon over time.
I don’t see any reason to do this. With a government pension, a wife with a pension, social security benefits combined with a $1,500,000 investment portfolio, I don’t see any need for life insurance coverage.
Looking at things from an investment standpoint, withdrawing money from an IRA and discontinuing 401k contributions to purchase a life insurance policy makes no sense. You will owe taxes on anything you withdraw from your IRA and you may be foregoing an employer matching contribution in your 401k.
Asking whether the cost of the policy is “worth the returns” is kind of a funny question because whole life insurance policies tend to provide low returns. I haven’t seen the illustration for this policy, but whole life policies tend to provide returns similar to other fixed income investments. Not to mention, the premiums you pay can lead to negative returns for the first several years of a policy. You typically have to hang on to the policy for a long time to even earn a decent fixed income return. If you’re investing for that long of a time horizon, you could invest at least a portion of that money in stocks which have historically earned much higher returns than fixed income investments such as bonds or whole life insurance.
It’s probably a better idea to keep your money in your IRA, continue contributing to your 401k, and invest in a diversified portfolio with an asset allocation that is suited to your financial goals.