Posts by Mark Henricks
Retirement
Can I Roll Over the Employer Match in My 401(k) to a Roth IRA?
If you want to roll over money from your 401(k) into a Roth IRA, there’s good news: any employer matching funds in a 401(k) can be converted along with your own contributions and investment earnings. However, you’ll owe income taxes on all the converted funds, which can be a significant issue when converting large balances.… read more…
Retirement
Should I Take a $200,000 Lump Sum or $915 Monthly Payments for a Pension Annuity?
Deciding between taking a lump sum or monthly payments involves assessing a number of factors, including some that are difficult to quantify. The two most important considerations may be when you will receive the lump sum and how long you will live afterward. Getting the lump sum payout sooner increases the lump sum’s value, while… read more…
Retirement
I Have $500k in a Roth IRA, and Will Receive a Combined $2,000 a Month From a Pension and Social Security. Can I Retire at 62?
Figuring out when you can afford to retire often comes down to determining whether your assets will produce enough annual income to support your lifestyle and spending needs. If you need help deciding when to retire, connect with a financial advisor and have them build you an income plan based on your unique financial situation.… read more…
Retirement
How to Make Investments in Your Roth IRA
A Roth IRA is an account, not an investment, so once you’ve put money into the account it still must be invested. Common investment options for Roth IRA accounts include stocks, bonds, mutual funds, exchange-traded funds, money market accounts and certificates of deposit. Some sponsors offer many options, while others only have a few. Self-directed… read more…
Retirement
Types of Annuities for Seniors to Consider
Annuities can provide steady income for as long as you live, which is one reason a senior might purchase one. These contracts with insurance companies come in many different varieties, which can help address seniors’ specific financial needs. However, their variety and complexity can make annuities confusing compared to relatively straightforward investments such as mutual… read more…
Retirement
I’m 59 With $1.3 Million in a 401(k). Should I Convert $130,000 Per Year to a Roth to Avoid RMDs?
Converting a 401(k) into a Roth IRA can be appealing for several reasons. Not only can you make qualified withdrawals from Roth accounts tax-free, but Roth accounts are also exempt from required minimum distributions (RMDs.) That can give you more flexibility when withdrawing from your account in retirement and potentially save you money on taxes. If… read more…
Financial Advisor
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…
Retirement
Guide to Retirement Planning for Millennials
Members of the Millennial generation face special challenges including high levels of student loan debt and inflated housing costs when it comes to planning for a secure retirement. However, by taking proactive steps now, Millennials can set themselves up for a comfortable and secure retirement. Keys include budgeting, saving and making the most of tax-advantaged… read more…
Estate Planning
How Much a Living Trust Costs to Create in New York
Having a living trust as part of your estate plan lets you bypass New York’s probate process, saving money, time and trouble. However, setting up a living trust involves some time, trouble and cost as well. Many estate planners pay attorneys to create and fund a living trust. This can cost from $1,000 for a… read more…
Retirement
I’m 55 With $1.2 Million in My 401(k). Would Catch-Up Contributions Be Worth It?
Catch-up contributions are designed to help people save extra money in tax-advantaged retirement accounts once they hit age 50. For many savers who are behind on their retirement savings goals, catch-up contributions represent a not-to-be-missed second chance at securing a more comfortable retirement. A financial advisor can help you plan and save for retirement. Connect… read more…
Estate Planning
How Long Does Probate Take in California?
The probate process in California can be lengthier than in some other states, averaging about a year but often requiring 18 months and even longer. The stretched-out period required to settle a California estate is due in part to a requirement that the court wait four months for creditors to respond after letters of administration… read more…
Estate Planning
How Much It Costs to Create a Living Trust in California
Because the probate process in California takes longer and costs more than in many states, Californian estate planners are especially likely to use a living trust as part of an estate plan. While they are intended to save time and money when settling an estate, setting up and funding a California living trust does consume… read more…
Retirement
I Want to Convert $920k from a 401(k) to a Roth IRA. How Can I Reduce Taxes?
Transferring funds from a 401(k) into a Roth IRA lets you make tax-free free withdrawals in retirement, avoids rules on mandatory distributions and adds flexibility for estate planning. However, when converting a large amount of money, the potential tax bill becomes a major issue. Fortunately, strategies exist that can reduce the tax bill significantly and… read more…
Retirement
Can a Nursing Home Take Our Savings? We Have $350,000 in IRAs
A $350,000 account could be exhausted in just a few years if both members of a couple required semi-private rooms in skilled nursing facilities. However, that’s not necessarily what would happen. For one thing, most people don’t run up nursing home bills of that magnitude. Also, you may be able to get government assistance to… read more…
Taxes
I’m Selling My House and Netting $480k. Can I Avoid Taxes While Downsizing for Retirement?
In most cases, when selling your primary residence you can exclude $500,000 of the gain if you file as a married couple. If that’s your situation, and you meet conditions to have the gain qualify as a long-term capital gain, you likely won’t owe any tax. If you file singly while still meeting long-term capital… read more…
Retirement
How Much You Need to Save to Retire With $5 Million
Accumulating a $5 million nest will require saving each month somewhere between a few thousand dollars and a few tens of thousands of dollars, with the difference depending mostly on your age when you start. Other factors include your age at retirement, investment returns and taxes. While $5 million will fund a comfortable and secure… read more…
Estate Planning
How Much Does Probate Cost in Florida?
The cost to settle an estate through probate in Florida can range from a few hundred dollars to hundreds of thousands of dollars, depending on the size of the estate. In addition to modest court costs, more sizable fees will likely go for attorneys and executors. These costs are on top of other payments that… read more…
Retirement
I’m 75 With $900,000 in an IRA. How Do I Make Sure This Money Lasts the Rest of My Life?
Ensuring that your retirement savings last the rest of your life often requires balancing income with expenses over your projected lifespan. But suppose you have $900,000 in an IRA. You’d also want to consider whether you want to leave behind a financial legacy. And since all long-range forecasts are subject to change, you’d need to… read more…
Checking Account
Bank Failures: How to Keep Your Money Safe From a Worst-Case Scenario
After a tumultuous 2023 that saw some of the largest bank failures ever, the U.S. banking system appears to have stabilized. More bank failures are inevitable, however, and depositors could risk losing money any time one occurs. The first line of defense, federal deposit insurance from the FDIC, has worked reliably to date. To avoid… read more…
Taxes
9 Common Tax Mistakes and How to Avoid Them
The more money you make, the higher your tax liability could be. And making a mistake in your filing can end up costing you more in fees and penalties. Here’s a roundup of common tax mistakes that could cost you money this tax season. A financial advisor who specializes in tax planning could also help… read more…
Personal Finance
Financial Planning Strategies for Physicians
Physicians are among the best-paid professionals but that doesn’t make them immune from financial challenges. From coping with sudden wealth when just starting to work to planning for business succession at the end of many years of owning a practice, physicians may face special needs for careful financial planning. If you’re a physician contemplating your… read more…
Estate Planning
Do I Need to Worry About the Gift Tax If I Pay $60,000 Toward My Daughter’s Wedding?
For many Americans, offering a $60,000 gift to pay for a child’s wedding probably isn’t something to worry about from a tax perspective. You could owe federal gift taxes if your lifetime gifts are over the lifetime exclusion amount, though, but the limit is set quite high. More specifically, for 2024 it sits at $13.61… read more…
Estate Planning
How Much Does It Cost to Make a Will?
Creating a last will and testament as part of your estate plan could cost anywhere from nothing to several thousand dollars. The actual price will vary depending on the method you use to create a will. Doing it yourself is least expensive, and can involve no cost at all. Hiring an estate attorney to do… read more…
Advisor Resources
How Much You Could Make If You Earn a CRPC
Getting a chartered retirement planning counselor (CRPC) designation can increase a financial advisor’s earning potential without the need to invest a lot of time, energy and money. People with this financial professional certification report earning an average of 9% more after qualifying for the designation, according to the organization that provides training for CRPC applicants.… read more…
Retirement
11 Retirement Planning Tips for 2024
Planning for retirement has a new look in 2024, thanks to changes brought about by Congress. Retirement savers this year will find fresh things to consider when it comes to rainy day savings, 401(k) contribution limits for older workers, rules on mandatory withdrawals for Roth 401(k) plans and student loan payment matches. At the same… read more…