- What Is a Flat Fee Financial Advisor?
Whether you’re planning for retirement, saving for a child’s education, or simply aiming to grow your wealth, understanding how financial advisor fees work can significantly impact your financial strategy and overall satisfaction. One common fee structure is a flat advisor fee. This type of fee charges a fixed fee for services, whereas other advisors can… read more…
- Should I Invest in Real Estate or the Stock Market? I’m 68 and Selling a $750k Property
I’m 68 and selling vacant real estate that is worth about $750,000. Is it better to reinvest the money by doing a 1031 exchange for income producing real estate or invest in the stock market? I’m already taking Social Security and only have about $100,000 in other liquid assets. I don’t have much other income, maybe… read more…
- I’m 65 and Just Did a Roth IRA Conversion to Avoid RMDs. Does the 5-Year Rule Apply to Me?
Imagine that you’re 65 years old and just completed a Roth conversion during a low-tax year early in retirement to avoid future required minimum distributions (RMDs). However, not long after the conversion, you want to withdraw the money you just paid taxes on. But pursuing the withdrawal without first understanding the five-year rule for Roth… read more…
- How Is Alimony Calculated in New York?
Alimony is a payment from one divorced former spouse to the other that’s intended to provide the lower-earning spouse with sufficient income to meet their needs. Laws in every state provide for alimony, also known as spousal support or spousal maintenance, but they use a variety of ways to set the amount of money to… read more…
- Thinking of an IRA Rollover? This New Rule Will Impact the Investment Advice You Receive
Financial professionals who give one-time investment advice will soon be legally required to act in their clients’ best interests under the Department of Labor’s new fiduciary rule. Are you looking to hire a fiduciary financial advisor, but don’t know where to start? SmartAsset’s free tool can connect you with up to three advisors who serve… read more…
- I’m Selling Inherited Artwork to Pay for Graduate School for My Grandchild. How Can I Limit the Taxes?
Decades ago, I inherited a valuable piece of art, and I’m now considering selling it to finance a grandchild’s graduate degree that will cost $80,000. What do I need to consider in regard to taxes? Do I sell the piece and pay taxes? Then I could give the money to my grandchild over two years… read more…
- How Is Alimony Calculated in California (CA)?
This alimony system was built around the idea that the job market significantly disfavored women, so a divorced wife could rarely support herself. As a result, alimony often required a significant division of future income for either life or until the recipient remarried. Most states have changed this system in whole or in part. Alimony, today,… read more…
- When I Claim My $4,000 Social Security, Will My Wife Automatically Get a Spousal Benefit?
My wife is 76, born in 1948. She retired at full retirement age and currently collects $1,076 per month. I will be retiring and start collecting at 70 this year (I was born in 1954). When I collect $4,000+ per month does her monthly payment go up to spousal benefit automatically or does it have… read more…
- I Make $310k and Have $550k in My 401(k). Should I Get Variable Universal Life Insurance?
Is contributing to a variable universal life insurance policy a good idea? I’m 39 with a $310,000 annual income. I have $550,000 in a 401(k), $13,000 in an HSA, $25,000 in cash savings and a $42,000 investment account balance. I don’t have any student loans or credit card debt I maxed out my annual 401(k) contributions last… read more…
- How to Achieve Retirement Security With a Financial Plan
Personal finance can be daunting, but with a well-crafted financial plan, you could map a course to help reach your financial goals with confidence. A financial plan is a comprehensive strategy that is tailored to your unique financial situation and encompasses budgeting, savings, investments, insurance and estate planning. Whether you’re preparing for major milestones or… read more…
- I Have $900k in a Roth IRA and Would Receive $2,200 Monthly From Social Security. Can I Retire at 66?
Imagine that you have $900,000 in a Roth IRA and collect another $2,200 per month in Social Security. Can you afford to retire at age 66? A good way to answer this question is to start with your budget. What do you expect to spend on essentials, like housing and fixed monthly expenses, and what… read more…
- What Is a Fee-Only Financial Planner?
If a financial planner, financial advisor or another type of financial professional is fee-only, that means they receive compensation solely from the fees clients pay for their services. They do not earn commissions for recommending certain products. A fee-only structure… read more…
- Will Doing $7k in Annual Roth Conversions Lead to Higher Social Security Benefits?
If we roll over $7,000 per yr from a traditional IRA to a Roth IRA for the next four years (which is when we will receive full Social Security), could it bump up the amount that we receive in Social Security? I realize that we would pay taxes on that rollover, but I was wondering… read more…
- Ask an Advisor: I’m Hiring an Advisor to Manage My $4-5 Million Estate. Should I Choose the $8k Flat Fee Over a $35k Asset-Based Fee?
I’m nearing retirement and I’m wrestling with hiring either a flat-fee or fee-only (AUM) advisor to help with retirement planning and ongoing investment advice for an estate worth between $4-5 million. There is a big cost difference between the two: the flat fee would be about $8,000 a year, while the fee-only advisor charges about… read more…
- Ask an Advisor: My Advisor Wants Me to Put 50% of My Money in Annuities. Is That Too Much?
My advisor is recommending I put over 50% of my portfolio in annuities. What say you? – Georgia As with most personal finance decisions, a lot hinges on the specific details of your situation. Fifty percent would likely be on the high side for most people, but that doesn’t mean it can’t be the right… read more…
- Income-Based Repayment (IBR) vs. SAVE for Student Loans
If you owe money on a federal student loan, you may be able to qualify for a repayment plan that will lower your payments and, ultimately, provide for partial forgiveness of the debt. Income-Based Repayment (IBR) and Saving on a Valuable Education (SAVE) are two popular repayment plans that include forgiveness. The two plans are… read more…
- How Is Debt Divided During a Divorce?
During a divorce, debt is handled the same as assets. This means, primarily, that courts will try to follow two rules. First, courts will distribute debt based on its marital and pre-marital status. Debt that someone held before the marriage will, in general, remain entirely with that individual. Debt the couple accrued during the marriage… read more…
- I Have $2.2 Million Invested With My Advisor Who Charges a 1% Fee. Am I Paying Too Much?
When it comes to advisor fees, there are two numbers to keep in mind: 1% and 0.02%. The first is the average fee that financial advisors tend to charge. If you are looking for comprehensive financial management, in general you should expect to pay about 1%. The second is a representative fee for a well-indexed… read more…
- Ask an Advisor: Should I Cash Out My $200k in Annuities and Buy a Rental Property That Will Bring in $1,500 Per Month?
I’ve already retired and I’ve got $200,000 in annuities and I’m 60 years old. Should I get a monthly income from my annuities (which will be about $1,000 or withdraw all of the annuities, pay the 30% tax and invest in a rental property and use that money — approximately $1,500 — for an income?… read more…
- Gift Tax Calculator: Do You Owe Gift Taxes?
Enter the value of gifts given to up to three people during this tax year. Also enter your total cumulative lifetime gifts given in previous years, which count toward your lifetime gift tax exclusion and may affect your taxes due in this and future years. Gift Tax Calculator Gift Tax Calculator Gift 1 Amount: $… read more…
- Ask an Advisor: I Plan to Retire Abroad But Need Another $300k-$400k. How Can I Get There?
I’m divorced three times, retired from the military and plan to retire from civil service in about four years at 64 years old. I have $150,000 in a thrift savings plan. I’m saving $900 monthly in this account and would be happy if it grew to $300,000 to $400,000. I’m also starting to put $600… read more…
- Ask an Advisor: I’m 44 With $1 Million in Retirement Savings. I Want a Backdoor Roth IRA, But I Don’t Know Where to Start
I’m 44 with $1 million in my 401(k), IRA and Roth IRA. Since my total household is above the threshold for investing in a Roth IRA, I have been considering employing the backdoor Roth IRA tactics. I left $700,000 in a 401(k) at my old employer. I am trying to strategize on “distributing” the old 401(k) balance… read more…
- How Permanent Alimony Works During Retirement in Florida
In July, 2023, Florida eliminated permanent alimony as a category from its divorce statute. Going forward, alimony payments in Florida will be based on set terms. Payments will expire either after a specific amount of time has passed or once specific conditions have been met. This means that spouses can now plan for an end to… read more…
- How Child Support Is Calculated in California
Like all states, California uses a formula to calculate the exact amount of child support that a parent owes. This formula result is then applied and modified by a family court judge, who produces a final child support order. Family courts have broad discretion to modify child support based on their impression of the child’s… read more…
- Ask an Advisor: I’m 60 With $65k in Pension Income and $100k in My IRA. Is a Roth Conversion Worth It?
I’m 60 and I would like to convert some money from my regular IRA to a Roth. I’m aware that the earnings are subject to penalty before five years but I won’t need that money until at least age 70. Is it advisable to do so? My annual income from a pension is $65,000 and… read more…