One of the benefits of working for a large company is that they offer free financial education courses and advising through a third party company.
A few nights ago, I had my first money coaching session. I don’t think of it as financial advising since they don’t offer specific investments as suggestions, but they talk about asset allocation and types of investments that fit into a larger portfolio strategy.
One nice thing is that the adviser can see my 401k portfolio and there is a virtual file-sharing system so I can upload my private IRA holdings so they can review those in a bigger overall investment strategy for me.
What made me feel good is that his current suggestions for my portfolio are about where my 401k allocation is at right now. I am a lazy, lazy rebalancer and so I buy what I need to slowly rebalance into a better asset allocation.
What is interesting is that he asked me what my risk level was. I told him I just found out. I don’t mind 20-25% losses in a year, but 40% is unacceptable. That’s what drove me to finally add bonds to my asset allocation mix. I just didn’t have the stomach to lose that kind of money. I’ve lost 20% before, but 40? Wow.
The adviser did give me this one tip, in 3 years the market will probably make back that 40% loss, if history has any bearing on the future. I don’t know about that, but I’m glad I have 3 years. Unfortunately my parents do not and that is what currently troubles me.
I have another session planned at the end of the month. After he reviews my data, we’ll see what other suggestions he has for me.
What about you? Do you have financial coaching/advising as a company benefit? Do you use it? In light of Ramit’s guest post on Get Rich Slowly, why aren’t you using it if it’s available?
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We only have financial advising sessions (group) administered by the vendors who offer their plans to our institution. No personal coaching, so no, I don’t bother to go.
That’s great! My company doesn’t do that. There are perks for working with larger companies, that’s for sure!
That’s one benefit you should definitely take advanttage of. I know a lot of people who’d like free financial education courses – it’s just that they can’t get it for free.