- Ask an Advisor: Will $25k in Annuity Payments Cut My $50k RMD in Half?
I’m in my mid-70s and I’m considering purchasing an immediate single premium lifetime annuity for myself using a portion of my regular IRA account as the source of the premium I would be paying. Having been notified of my 2024 RMD based on the Dec. 31, 2023, balance (assume the RMD is $50,000), do the… read more…
- Ask an Advisor: How Do I Structure My Withdrawals to Keep My Healthcare Subsidies? I’m 60 With $2.4 Million
At the age of 60, I recently entered retirement after being a business owner. I’ve been securing health insurance through the marketplace since its inception. Currently, my income is derived solely from withdrawing money from my taxable portfolio, comprising reported dividends and capital gains totaling less than $60,000 annually. An advantageous outcome of this approach… read more…
- Ask an Advisor: If I Delay My First RMD, Can I Count It as Income for the Previous Year?
If I turn 73 in 2025 and take out my first RMD before Dec. 31, 2025, it would be 2025 income. If I wait until the April 1, 2026 deadline for RMDs, would the withdrawal still count as 2025 income? I still have to take another RMD before Dec. 31, 2026, which would be 2026… read more…
- 5 Reasons to Get a Financial Advisor in Your 20s
Why You Should Get a Financial Advisor in Your 20s Financial planning is a crucial aspect of life, irrespective of one’s age or economic status. It necessitates making educated decisions about your finances to effectively pursue your life ambitions. For many, this process might seem quite difficult to figure out. This is where the role… read more…
- 7 Major Financial Checkpoints: How Do You Stack Up?
When it comes to financial plans, your assets, cash flows and debts all influence the path toward your goals. While talking to a financial advisor can help you establish a comprehensive plan to reach your goals, you can use basic rules of thumb to gauge your current financial position. 1. Housing Ratio (Monthly housing costs)/(Monthly… read more…
- I Have $1.7M Invested With My Advisor and I Pay a 1% Fee. Am I Paying Too Much?
When it comes to financial advice, what you pay can vary based on what you get. An advisor who simply sets you up with a passive S&P 500 index fund might not be worth a 1% fee, while an advisor who helps you manage taxes and cash flow, plan for retirement and save for your… read more…
- Ask an Advisor: If I Move From New York City to Florida, Can I Afford to Retire?
I’m 54 and would like to retire next year. I intend on moving out of expensive New York City to Florida where I will purchase a home outright with cash for $600,000 to $650,000 (financed from the sale of my home last year). Additionally, I have a 457(b) plan with a $1.4 million balance and… read more…
- Ask an Advisor: I’m 68 With $1.4 Million in Savings and Another $1 Million in Stocks. Can I Retire at 70?
I‘m a 68-year-old single man in good health and I plan to work until I am 70. As of now, I have $400,000 in CDs, about $1 million in stocks, and about $1 million in my 401(k) and IRA combined. When I retire, I will get about $4,200 in Social Security and I have $4,000… read more…
- Ask an Advisor: Can I Retire at 55? I Have $760k, Plus a Rental Property, Pension and Disability Benefits
I’m a 43-year-old woman with a partner (not legally married) and no kids. I currently have $500,000 in a 401(k) and contribute up to the pre-tax limit every year, plus $10,000 in non-deductible contributions. I have $50,000 in an IRA and bonds, $100,000 in stocks and $100,000 in savings. I own a rental property that… read more…
- Ask an Advisor: We’re in Our 70s With Nearly $3.5 Million Invested ‘Solely in Stocks.’ Should We Switch to a 60/40 Portfolio?
I am 73 and my wife is 70 with one son. We have $235,000 in a savings account and we each have $250,000 in Roth IRAs. We also have $1.675 million in a brokerage account and $1.55 million in a 401(k). Everything other than the two Roths are invested solely in stocks and the two… read more…
- Ask an Advisor: We Have $1.2 Million in IRAs and Only $10k in Cash. Should We Use IRA Withdrawals to Build Our Emergency Fund?
I am 64 ½ and have been retired for just over a year. I am receiving Social Security benefits, a bit early, but have not touched my nest egg except to withdraw $10,000, which I placed in a high-interest savings account as an emergency fund. Would it be wise to use part of that cash… read more…
- Financial Planning vs. Estate Planning
Both financial planning and estate planning can help you reach long-term financial goals. But while they are very different in which aspects of your finances they can focus on, both financial approaches could also complement each other to offer you a healthy balance between growth and protection. To execute either, it’s important to understand how… read more…
- What Are Exempt Reporting Advisers (ERAs)?
Exempt reporting advisers (ERAs) are specialized financial advisors who offer their services primarily to certain private investment and venture capital funds. These advisors are not required to register with the U.S. Securities and Exchange Commission (SEC) but still must report certain information. This unique role sets ERAs apart from other investment advisors, making them a… read more…
- How to Manage Sudden Wealth in 7 Steps
A substantial boost in your personal wealth can happen overnight. You can win the lottery, inherit an estate or profit from a business sale. Many people aren’t prepared for a sudden windfall, making it difficult to know which steps can protect that money and grow it long-term to last a lifetime. If this sounds like… read more…
- I Turn 73 This Year. How Do I Avoid RMD Taxes?
The IRS allows workers to put aside pre-tax earnings in traditional Individual Retirement Accounts, 401(k) and similar workplace accounts, and for all the money to grow – tax-deferred – to give you cash for retirement. But the national tax collector only waits so long to collect, and once you turn 73, the law forces retirees… read more…
- Ask an Advisor: We Have $1.6M in a 401(k) Plus Another $650k and Social Security. Should We Shift Assets to a Target Date Fund or an Annuity?
We have a combined pension and Social Security income of $8,400 per month that will only drop to $6,730 if one of us passes away. Our RMDs will start soon and we have $1.6 million in a 401(k) which we feel we can use a low-cost (expense ratio 0.12%) total return target fund to avoid… read more…
- Ask an Advisor: My Wife and I Want to Retire Early. How Many Different SEPPs Can We Have?
My wife and I plan to retire before age 59 ½. How many different 72(t)s can a household utilize? For example, if I have two traditional IRAs at two separate brokerages, can I take substantially equal periodic payments from each or do I need to consolidate them into one first? Since we file our taxes… read more…
- Ask an Advisor: My Advisor Charges a 2% Fee But He Doesn’t Provide Tax Advice. I Have an $850k Portfolio. Am I Paying Too Much?
My advisor charges a 2% fee for financial advice. He does not provide tax advice. My portfolio is currently worth around $850,000. Does this fee sound appropriate? – Tim Without knowing the full scope of services delivered by the advisor, 2% may be too expensive for a portfolio of your size and for a relationship… read more…
- The Average Success for the Series 65 Test and How to Pass
If you’d like to become an investment advisor representative (IAR), you’ll need to successfully pass the Series 65 exam. The Series 65 exam is a North American Securities Administrators Exam that’s administered by FINRA, the Financial Industry Regulatory Authority. The Series 65 pass rate is typically around 65%-70%, underscoring the importance of proper study and… read more…
- Ask an Advisor: Can My Partner Collect Spousal Benefits From Social Security? We’re in a Common Law Marriage
Does Social Security recognize common law or do you have to be legally married? My potential life partner is currently on disability collecting Social Security in a neighboring state. If the spousal rate is higher, can he then collect that and also continue to claim his disability? – Penny Yes, the Social Security Administration (SSA) does… read more…
- Ask an Advisor: How Do I Reduce My RMD to Just $25k So My Social Security Isn’t Taxed?
I’m in my first year of required minimum distributions of $36,000, which is causing me to be taxed on my $33,000 in Social Security benefits. What is a good strategy to reduce my RMDs below $25,000 so my Social Security benefits do not become taxable? Would taking a lump sum from my pre-tax IRA and… read more…
- Ask an Advisor: Do IRA Withdrawals Before I Turn 73 Count Toward My RMDs?
Do withdrawals from my pre-tax IRA and/or 401(k) accounts made before I turn 73 count toward my RMDs? Or do RMDs start at 73 without regard to prior withdrawals? I’m 70 now and still working and collecting Social Security, but plan to retire in 2024. – Luis Unfortunately, withdrawals from an IRA or 401(k) before… read more…
- I’m Going to Get $2,700 per Month From Social Security. How Can I Reduce My Taxes?
Social Security plays a critical role in the retirement plans of millions of Americans, but how these benefits are taxed is sometimes overlooked. If you collect $2,700 per month in Social Security benefits, your check is well above the average retirement benefit of approximately $1,800 per month and it could mean that you’ll owe taxes… read more…
- Ask an Advisor: We’re in Our 70s With $120k in Savings and Social Security. How Do We Make It Last?
I’m 72 years old and my wife is 70. Over the years, some of our financial decisions were not the best, but we have enjoyed 45 years together so far, having two sons and now two daughter-in-laws and five grandchildren. Our problem is that because we wanted to give our sons the best of everything… read more…
- Ask an Advisor: Is a Backdoor Roth Conversion Taxable Even If I Didn’t Take a Deduction on My IRA Contributions?
I’d like to ask about the backdoor Roth IRA. Say you are over the income limit for Roth contributions, so you make a traditional contribution with no tax deduction and then do a backdoor Roth. Is that conversion taxable? If so, you would be paying tax on that money twice since you paid tax on… read more…