As a fiduciary financial advisor in Huntersville, Holland Capital helps two-income households decide where each dollar of savings should go, from two workplace plans to college and taxable investing, and manages the investments to one written plan. We work with clients in Huntersville by video and phone, and meet in person by appointment at the Regus center in the Griffin Building in Cornelius.
Two paychecks, two workplace plans and very little time to think about either.
You each signed up for benefits when you started work and chose a contribution rate that seemed about right. Then the children arrived, and a 529 got opened. There is some money in a brokerage account, and more sitting in savings than probably needs to be there.
Nothing may be wrong. It has just never been set up as one plan.
Where the Next Dollar Should Go
When there is money left at the end of the month, there are more places to put it than there used to be. There are two 401(k)s, Roth and pre-tax choices, 529 accounts, the mortgage and a brokerage account you can reach before 59½.
The right order is different for every household. It depends on both incomes, both sets of benefits, the tax bracket you are in now and the one you expect later, and when you would like work to become optional.
We look at both workplace plans side by side. Sometimes one has lower costs or better fund choices, so it may make sense to save more there. Then we decide what goes where and write it down, so you do not have to make the same decision again every January. The plan-level choices are covered in our guide on maximizing a 401(k). The larger picture is on our retirement planning page.
Choosing Roth or pre-tax depends in part on whether your tax rate is likely to be higher now or later. Our guide to Roth accounts and conversions explains how to think about it.
College and Retirement from the Same Paychecks
Saving for college and saving for retirement draw on the same income. It is natural to want to put the children first.
The two goals do not have the same options. A child can borrow for tuition or earn a scholarship. Nobody lends you money to retire. So we first decide what needs to go toward retirement, then how much can go toward college.
North Carolina no longer gives a state income tax deduction for 529 contributions. The main tax benefit of a 529 here is tax-free growth when the money is used for qualified education costs.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Both of Your Accounts as One Portfolio
Two workplace plans and a joint brokerage account can end up invested without anyone looking at them together. The result can be accounts that work against each other or take more of the same risk than you intended.
We manage it as one household portfolio, guided by an investment policy statement. That document spells out what the savings are for, when the money may be needed, how much risk the plan can accept and how each account is taxed. We then decide which investments fit best in each account, which our asset location guide explains.
That includes advice on the funds inside each 401(k), even though we do not hold those accounts. At Holland Capital, investment management means one plan carried out across every account the household owns.
How We Work with Clients in Huntersville
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
For the first conversation, bring a pay stub and benefits summary for each of you, plus a statement from every account. That is enough to see how the pieces fit together.
We will tell you what we would change first, what is already working and what can wait until next year.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Holland Capital is based in Charlotte. If you are looking for a fiduciary financial advisor in Huntersville, we meet by appointment at the Regus center in the Griffin Building, 19109 West Catawba Avenue in Cornelius, about 12 minutes from Huntersville, and handle shorter check-ins by video or phone. Holland Capital does not maintain a branch office in Huntersville.
We work with clients throughout North Carolina. You can see the other North Carolina communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
Can a Fiduciary Financial Advisor Help with Both of Our Workplace Plans?
Yes. We give advice on the funds and contribution choices inside each 401(k), even though your employers hold those accounts. Holland Capital acts as a fiduciary when providing financial planning and investment advice, and that advice covers accounts we do not manage as well as ones we do.
If you later roll a workplace plan into an IRA we manage, our fee would apply to that money. Whenever a recommendation would add to what we are paid, we tell you before you decide.
Should Both of Us Contribute the Same Percentage to Our 401(k)s?
Not necessarily. The plans may have different matches, different fund costs and different Roth options. It can make sense for one of you to save more in the stronger plan and the other to capture only the full match.
What matters is how much the household saves in total and where that money goes, not whether the two percentages match.
Where Do We Meet If We Live in Huntersville?
At the Regus center in the Griffin Building in Cornelius, about 12 minutes from Huntersville, by appointment.
Video or phone can be easier for shorter check-ins.
Photo: Crazyale / Wikimedia Commons / CC0, cropped.
