Evan M. Levine, ChFC's Answers and Guides
Level 20 Contributor
111 Answers and 23 Guides
Patricia, Though its a generic description, generally a " Pension" refers to a Defined BENEFIT type of plan. That is, you get a fixed monthly income for life at beginning at a certain age.( hence, the benefit is defined) A 401(k) is a Defined CONTRIBUTION
...(more)
Patricia, Though its a generic description, generally a " Pension" refers to a Defined BENEFIT type of plan. That is, you get a fixed monthly income for life at beginning at a certain age.( hence, the benefit is defined) A 401(k) is a Defined CONTRIBUTION type plan. That is, you contribute a certain amount into the plan ( Possibly matched by your employer) with a menu of investment choices - and whatever is there when you retire is there, with no guarantees ( hence, the contribution is defined) Hope that helps! Evan
hide
Brightscope and Judy Diamond are two that I know of. To what end are you performing this analysis?
Technically, any money you withdraw from a 529 plan that is not used for higher education is subject to both income tax and a penalty. You can transfer the account to a sibling or cousin - or just hold it and let it keep growing tax deferred. Down the
...(more)
Technically, any money you withdraw from a 529 plan that is not used for higher education is subject to both income tax and a penalty. You can transfer the account to a sibling or cousin - or just hold it and let it keep growing tax deferred. Down the road you can transfer it to a grandchild or use it for your own retirement. The long term tax deferrel could make up for the tax and penalties if you hold it for a long enough time period. Good luck!
hide
Harrison,
Each situation is diffrent and Long Term Care is a very complex product that can be structured endless ways- in terms of benefit amount, waiting period, benefit period and numerous optional riders ( add -on's). You need to work with a specialist
...(more)
Harrison,
Each situation is diffrent and Long Term Care is a very complex product that can be structured endless ways- in terms of benefit amount, waiting period, benefit period and numerous optional riders ( add -on's). You need to work with a specialist directly. Feel free to call me at 917.696.0674 or E-mail at evan@completeadvisors.com. I can help. Thanks.
hide
Lydia, " Keogh" is a generic term for a retirement plan intended for self emplyed individuals and employees of unicorporated businesses. You can contribute 100% of your income to such a plan up to a maxium of 50k this year. Your earnings will grow tax
...(more)
Lydia, " Keogh" is a generic term for a retirement plan intended for self emplyed individuals and employees of unicorporated businesses. You can contribute 100% of your income to such a plan up to a maxium of 50k this year. Your earnings will grow tax deferred untill you withdraw them and there are tax penalties for early withdrawls. Like other plans, Keoughs are available for just about any kind of investment exept precious metals or collectable. The type of Keough you choose ( Solo 401-k, SEP etc) would depend on your situation if you want the option of adding employees etc. Good luck!
hide
Karthik, I agree with Donald on all points and would add the following: The first " Big picture" important decision for you is this: Do you want to be a " do it yourself " investor or would you prefer to outsource the managing of your investments to an
...(more)
Karthik, I agree with Donald on all points and would add the following: The first " Big picture" important decision for you is this: Do you want to be a " do it yourself " investor or would you prefer to outsource the managing of your investments to an adviser?
If it's the former, Scottrade - or any discount broker- is fine. Under this approach, you will do your own research and make your own decisions going forward. This, in all likelihood, is lowest cost approach. If you consolidate with Fidelity, you may get a slightly higher level of support ( depending on how much you are investing) in terms of a service rep that will speak with you on the phone regarding your situation... But don't be surprised if that person changes frequently.
The highest level of support would be for you to hire an independent RIA ( Registered Investment Adviser) who can work with you as a fiduciary. Taking this path, you and your husband would meet with the adviser in person and create a long term, written comprehensive financial plan based on your goals. Ideally, this plan would cover not only investments but also touch on budgeting, Insurance, basic estate planning et cetera.
Then, ideally, you will meet with this adviser ( face to face) at least 2x a year to make adjustments to your plan and keep everything on track. This is the full blown " hand holding approach" and the adviser is usually compensation through a fee; either a flat fee each year or as a % of assets they are supervising for you.
This approach is more expensive than a discount broker but may be close to Fidelity's total cost depending on which fidelity investments are used and what the adviser charging. I hope this helps.. feel free to e-mail me at evan@completeadvisors if you have any more questions. Thanks, Evan
hide
Let's not lose the Forrest for the trees here. The Roth / Traditional is not the central issue here .Goals are. The first step is to think about goals... what are you investing this extra cash for? College for kids? Your own Retirement? Long term wealth
...(more)
Let's not lose the Forrest for the trees here. The Roth / Traditional is not the central issue here .Goals are. The first step is to think about goals... what are you investing this extra cash for? College for kids? Your own Retirement? Long term wealth accumulation? Another short term Goal? ( For example if you are investing to have a down payment for a summer house in 2 years, checking and savings may very well be the right place - and it wouldn't go into an Roth or any other type of IRA) What's your time horizon?? More information is needed.
When your goals are clarified, we can then focus on investment policy: The mix stocks, bonds, cash How much volatility are you comfortable with? Do you want to manage your extra money yourself or outsource to an advisor? Best of luck! Evan
hide
Quincy: How long untilyou plan on retiring/ withdrawing these funds? The traditional/Roth decision (in part) is based on your time horizon. What's more important, however, is your underlying investment strategy. What is your mix of stocks, bonds and cash?
...(more)
Quincy: How long untilyou plan on retiring/ withdrawing these funds? The traditional/Roth decision (in part) is based on your time horizon. What's more important, however, is your underlying investment strategy. What is your mix of stocks, bonds and cash? Are you choosing the funds by yourself or outsourcing that function to an advisor? Do you have a comprehensive, long term financial plan in place? Thanks and best of luck!, Evan
hide
In addition to all of these good answers, here is a different angle; Is it possible for you to find a way to buy a car outright and avoid a loan altogether? I bring this up because I just went through this thought process for myself and concluded the
...(more)
In addition to all of these good answers, here is a different angle; Is it possible for you to find a way to buy a car outright and avoid a loan altogether? I bring this up because I just went through this thought process for myself and concluded the following: I could by a car in excellent condition that is 5,7 or 10 years old. I don't understand the economics of buying a new or slightly used car. I went to Autotrader.com and ended up with a very nice 2003 Ford Explorer with 41,000 miles for under 9,000. It runs perfect and now I have no monthly payments! And don't need to worry about going over miles. (and don't stress out about dings in the parking lot) Admitted, it was more of a hassle than going to a dealer but I believe I did better financially. This route is not for everyone - each situation is different - but I'm convinced that one can get a car in excellent condition for as little as 7k if you are willing to spend some time and go directly to a buyer. . Best of luck! Evan
hide
Gerrit, DCA makes sense if your investable funds are available on a regular basis (Monthly, Bi-Monthly) as in the case of salary deferrals for a 401-k, as pointed out. But if you have established a written financial plan - with clearly stated goals,
...(more)
Gerrit, DCA makes sense if your investable funds are available on a regular basis (Monthly, Bi-Monthly) as in the case of salary deferrals for a 401-k, as pointed out. But if you have established a written financial plan - with clearly stated goals, objectives and time horizon.. and a lump sum is available to invest in that plan, I would argue its smarter to go in all at once .From the credible data that is available, we know that (historically) equities rise on about 70% of the trading days and decline on 30%... So going in monthly with a lump sum available is going against the odds. Best of luck! Evan
hide
