- Ask an Advisor: We’re 65, Have $1 Million Saved and $42K in Social Security Benefits. Can We Live on $90K Per Year?
My wife and I are both 65 years old. She will retire this year and I’ll work until I’m 67. We’ll get about $42,000 in Social Security and have about $1 million in savings. Can we live on $90,000 per… read more…
- Ask an Advisor: How Can Tax Rates Be Higher in Retirement Than Your Earning Years?
I recently attended a retirement seminar at a local community college where the instructor talked about potentially higher tax rates in retirement due to the new RMD age. I have been under the impression throughout my saving career that tax… read more…
- Ask an Advisor: Does a Financial Advisor Need to Look at My Entire Portfolio?
Is it possible to have someone advise me on only part of my portfolio and does that make sense? -Marda It really depends on both what you’re trying to achieve and what your financial advisor is willing to accommodate. In… read more…
- Ask an Advisor: How Much Money Can I Earn Working After Taking Social Security at Age 62?
How much am I able to earn from an employer if I opt to take my Social Security at age 62 next year? – Glenn To be very clear, you can earn as much money as you want while collecting… read more…
- Ask an Advisor: I’m 31, Make $80k Per Year and Have About $250k in Assets. Should I Switch to a Roth 401(k)?
My company provides both a traditional and Roth 401(k) option. My question is whether I should contribute to a traditional 401(k), Roth 401(k) or a mix of both. I am 31 years old, single and live in San Francisco. My… read more…
- Ask an Advisor: I’ve Heard About the Benefits of a Bond Ladder Strategy. What Are the Downsides?
A financial advisor told me the pros of building a two-part bond ladder (three-year Treasurys and 10-year corporates) to generate fixed income and cover required minimum distributions (RMDs). What are the cons? -Ken When used in the right circumstances and… read more…
- Ask An Advisor: I’m 65, Earning at My ‘Absolute Peak’ and Won’t Retire Soon. Should I Use My Roth IRA for a $30K Home Improvement Project?
I am 65 and at the absolute peak of my earnings. I’m also in the 35% tax bracket and am not looking to retire soon. I need $30,000 for a home project. I have enough to take it out of… read more…
- Ask an Advisor: Should a Financial Advisor Ask for My Risk Tolerance or Use Their Own ‘Proven’ Investment Strategy?
Should a financial advisor ask me for my risk tolerance, then invest accordingly? Or do they use their own proven strategy? -Chris This question sets up a false dichotomy. These risk-related investing considerations are not mutually exclusive. Many financial advisors… read more…
- Ask an Advisor: Do I Need More Life Insurance? I’m 40, My Partner’s Disabled and I Can’t Rely on My Current Life Insurance Policies Forever
I’m currently 40, and my existing 20-year term policy for $250,000 will expire at age 53. I also have about $100,000 in coverage through my employer, which I would lose if I switched jobs. My partner is disabled, unable to… read more…
- Ask an Advisor: I Want to Give Money to My Son and Daughter-in-Law. How Much Money Can I Give Away Without ‘Incurring a Tax Issue With the IRS?’
How much money can I give to my son and daughter-in-law without incurring a tax issue with the IRS? -Irwin For 2023, you can give your son and daughter-in-law each $17,000 without having to deal with the IRS. But even… read more…
- Ask an Advisor: Our Investment Portfolio Fell From $450K to $250K. Should I Cash in My Investments?
Our investments were $450,000 and are now $250,000. How much do I lose before I cash in investments? -Liz I’m sorry that you’ve experienced such a significant financial loss. I know that can be stressful and scary as you wonder whether… read more…
- Ask an Advisor: ‘Am I Too Late?’ I’m 68, Have No Investments and Only Have $60K Saved
At 68, I do not have any investments of any kind. My $80,000 condo is paid off, and I have $60,000 saved. Am I too late? -Bernhard It’s never too late to start investing and managing your money. But I… read more…
- Ask an Advisor: I’m in the Highest Tax Bracket and ‘Plan to Be There Moving Forward.’ Should I Do a Roth Conversion?
What are your thoughts on Roth conversions if you are in the highest tax bracket and plan to be there moving forward? -Joel If you ask some financial professionals, the answer to this question might be a resounding no, and… read more…
- Ask an Advisor: ‘I’m Strictly Into Bonds’ and Afraid of the Stock Market. Is This a Strategy I Should Stick With?
I’m afraid of the stock market. With my first investment, I lost 60% of my money. So I’m strictly into bonds. With interest rates low, what’s your advice? Should I stay or try something else? -Jerold It’s reasonable to be… read more…
- Ask an Advisor: I Want to Roll Over My Money to a Roth IRA. How Do I Avoid Paying Taxes?
If I have a tax-deferred 401(k). Can I convert it to a Roth IRA without paying the deferred taxes when I roll it over? -Tommy Generally, the answer here is no. There’s typically no method to totally dodge taxes on… read more…
- Ask an Advisor: ‘Prove Me Wrong.’ I Think Investing in CDs Is a Better Deal Than Working With an Advisor
Why hire a financial advisor who will take around 1% percent of your assets per year when you can get a certificate of deposit (CD) at over 5% with no fee? That alone amounts to a 6% return on your… read more…
- Ask an Advisor: I Don’t Need Them ‘Dumped Into My Checking Account.’ What Can I Do With RMDs?
I am approaching the time when I’ll take required minimum distributions (RMDs) from my individual retirement account (IRA). I am in a quandary about what I can do with this anticipated largesse of cash. I do not necessarily need the… read more…
- Ask an Advisor: I’m 65 Years Old and Going to Retire Soon. How Should I Structure My Portfolio?
I’m a 65-year-old preparing for retirement within the next three to five years. I’m looking at different types of retirement funds. Would adding stocks that are dividend-structured along with gold and cryptocurrencies be a good mixture? -Earl Shifting from building… read more…
- Ask an Advisor: ‘I Want Truly Independent Advice.’ How Can I Find a CFP Who’s Not Associated With a Brokerage House?
How can I find a certified financial planner (CFP) who is not associated with a brokerage house? I want truly independent advice and not steered toward selling me securities. I especially want tax advice. Everyone I have called turned out… read more…
- Ask an Advisor: ‘How Can I Mitigate This Situation?’ My Tax Bill Is Huge Because My Investment Accounts Don’t Withhold Capital Gains
My investment accounts don’t withhold taxes from my capital gains, which is causing me to owe large amounts when I file my returns. How can I mitigate this situation? -David As capital gains distributions are unpredictable and usually unknown until… read more…
- Ask an Advisor: I’m a 43-Year-Old Divorced Dad With $315K in an IRA, $90K in a Roth and Other Accounts. Can I Retire at 57?
I am a 43-year-old divorced father. I have $315,000 in a traditional individual retirement account (IRA), $90,000 in a Roth IRA, $22,000 in a health savings account (HSA), $8,000 in a 529 college savings account, $30,000 in a traditional 401k,… read more…
- Ask an Advisor: I’m 81, Have a $118K Mortgage and a $110K IRA. Should I Withdraw From My Investments to Pay off My Mortgage?
I am 81 years old. I have a home mortgage balance of $118,300. I also have a $110,000 rollover individual retirement account (IRA) invested with a bank. Should I withdraw the money from my investment and put the money to… read more…
- Ask an Advisor: ‘Am I Getting Fleeced?’ I’m 66, Contributing $272 Per Month to an IRA and Paying $136 Monthly in Fees. That’s 50% of My Contribution
I am 66 years old, still working and with very good health insurance. My company does not have a 401(k). I do have an individual retirement account (IRA) with approximately $120,000 invested. I contribute $272 per month, yet my program… read more…
- Ask an Advisor: Should I Pay off My Mortgage or Invest in CDs? I Refinanced My Mortgage at 2.375%, But I Can Get a CD at 4%. Plus, I Want to Retire in 7 Years.
I’ve been debating whether to pay off my mortgage. I’ve refinanced at 2.375% and can get a certificate of deposit (CD) for a year at 4%. I was adding to my mortgage payment by about $1,000 a month to pay… read more…
- Ask an Advisor: Can a Single Financial Advising Firm Address ‘My Complete Spectrum of Financial Concerns?’
Can one individual or organization cover my complete spectrum of financial concerns, including investment diversification and maximum returns, income tax optimization, required minimum distribution (RMD) management, and steady income cash flow? Is there a good way to survey fiduciary candidates… read more…