Visionary Wealth Advisors, LLC
Wealth Management Advisor
Joe is a CERTIFIED FINANCIAL PLANNER™ professional who works to help clients plan for a state of complete financial fulfillment. He and his team build long-lasting relationships with their clients and collaborate with them and the other financial professionals they work with to help create a cohesive financial plan.
Joe has been featured in The Wall Street Journal, on Yahoo Finance, USAToday.com, Nasdaq.com, Christian Science Monitor and NerdWallet. Joe has a Masters of Business Administration from Southern Illinois University Edwardsville and a Bachelor’s Degree in Marketing from Southern Illinois University Carbondale and a . He holds a Life & Health Insurance License and a Series 65 Securities License.
Joe works primarily with individuals and families at or nearing retirement, and highly successful "up-and-comers" in the medical, legal, and sales industries.
Joe was born and raised in Edwardsville, Illinois and lives with his wife, Jacki and son Brooks. Joe, Jacki, and Brooks are members of Enjoy Church and Matthew Allaria Ministries (led by Joe’s brother, Matthew). His family enjoys travel, golf, playing music and spending time with family and friends.
BS, Marketing, Southern Illinois University Carbondale
MBA, Southern Illinois University Edwardsville
Assets Under Management:
Investing involves the risk of loss and investors should be prepared to bear potential losses. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future. Therefore, it should not be assumed that future performance of any specific security, investment product or investment strategy referenced in the Article, either directly or indirectly, will be profitable or equal to the corresponding indicated performance level(s). No portion of the Article shall be construed as a solicitation to buy or sell any specific security or investment product or to engage in any particular investment strategy. In addition, this Article shall not constitute the provision of personalized investment, tax or legal advice, and investors shall not assume this Article serves as a substitute for personalized individual advice. Information contained in this Article may have been derived from third-party sources that VWA believes to be reliable; however VWA does not control such information and does not guarantee the accuracy or timeliness of such information and disclaims all liability for damages resulting from such sources. Links or references to third-party websites are provided as a convenience and do not constitute an endorsement by VWA, and the Firm is not responsible for the content of any such websites. Any reference to a market index is included for illustrative purposes only, as it is not possible to directly invest in an index. Indices are unmanaged, hypothetical vehicles that serve as market indicators and do not account for the deduction of management fees or transaction costs generally associated with investable products, which otherwise have the effect of reducing the performance of an actual investment portfolio.
Joe Allaria_Investopedia profile video
Thank you for your question. And, congrats on what seems like a great position you've put yourselves in thus far. It sounds like you're dealing with a very common issue in planning for retirement. You share the same concerns with many Americans, but honestly, not many have done such a great job saving like you have. With the right guidance, I believe you should be able to enjoy a wonderful retirement.
However, the biggest piece of information that I don't have from your description is how much you think you'll need to live on per month in retirement. While you do seem to have a solid foundation of retirement savings and minimal debt obligations, the outcome of your retirement plan is going to depend on how significant your outflows are.
To give you a quick comparison though, economists used to agree mostly on what's known as the 4% withdrawal rule. This rule roughly stated that if you invest your retirement accounts in a moderate manner (60% stocks, 40% bonds) and withdraw only 4% of your account each year, that your money should last you for 30 years, effectively lasting your entire retirement. However, with today's interest rate environment being what it is, the 4% withdraw rule has become somewhat obsolete and some advisors think 3% is more realistic.
Either way, a 3% withdraw rate would provide you with $39,000 per year from you investment portfolio in year 1 of retirement. So, what will your Social Security benefits look like? Do you have pension income as well? Any inheritances expected for the future? Planning for retirement can be difficult because the smallest inaccuracies in your assumptions can really sway the outcome in either direction. That's why it takes a qualified, Certified Financial Planner to guide you on these factors.
If you'd like to contact me directly, I'd be happy to help you get a better idea of what kind of track you're on for your retirement years. Again, kudos for what you've done up to this point and good luck in the future!
Joe Allaria, CFP®
If your concern is that your company will go out of business and you are wondering if your 401k would be at risk in that event, the answer is no, assuming you don’t own company stock inside the 401k plan. The actual money you invest in the 401k is not held by your company and is not contingent even on your company being in business. Your 401k plan is likely administered by a third party and your plan likely utilizes a custodian to hold onto the assets (like Fidelity, Principal, etc.). If you were to leave your job, many plans would allow you to leave your 401k at that custodian. It’s still your money and it’s still in your name.
Your company cannot access your personal retirement funds in the event they were to go out of business. The key is to know what you would invest in within the 401k. If you were considering buying some of your company’s stock, then you would be at risk of losing money if your company went out of business. Of course, investing itself carries its own risks and you should educate yourself on all of the risks involved with investing. But, the strength of your company should not affect your personal contributions to a 401k plan.
Hope that helps!
I think the answer to this question would depend on what is the advisor doing for you. Personally, I think that the typical 1% fee for asset management alone can be a bit steep. I think the industry is seeing more of a trend toward comprehensive financial planning in addition to investment management. Advisors are starting to realize that they (we) need to add additional value for clients due to the improved platforms and access to information for retail investors. These advisors would likely conduct detailed retirement planning analysis, provide an interactive software platform for the client, and coordinate with tax professionals, legal professionals, and insurance professionals to ensure that everyone is on the same page and working toward your best interests. For this, I would say 1 to 1.50% would be fair in my opinion. However, for investment management alone, I think a sub 1% fee would be more fair.
Thank you and please let me know if I can be of further assistance.
Joe Allaria, CFP®
Great question. I think this all boils down to how your accounts are structured. For example, there are some accounts that charge the client transaction costs as the transactions are made. There are others where the transaction costs are wrapped into the overall advisory fee, thus additional trades would not cost the end client additional dollars.
If your advisor is a commission-based advisor, who receives commissions for trade and transaction that is made, the information you provided is an incredibly huge red flag.This practice is known as churning (see more info here http://www.investopedia.com/terms/c/churning.asp). The practice is illegal and unethical according to the SEC (Securities Exchange Commission).
However, if your account is a "wrap-fee" account, where you are not paying additional costs for additional trades, then chances are your advisor simply believes in an active investment philosophy. Personally, I still think this is excessive given that you mentioned he/she is trading mutual funds. I often see a higher frequency of trading when dealing with individual stocks, but not as much with mutual funds since mutual funds are already diverse and they represent a collection of different stocks.
I hope this information is helpful to you. Let me know if I can help any further.
Joe Allaria, CFP®
Sorry to hear about your job loss. Hopefully these links will help you answer your question.
If you are not married, see the link below from the IRS website stating that you are allowed to make a fully deductible contribution to an IRA (amount is based on your age).
If you are married, see the link below. Your ability to make a deductible contribution to an IRA depends on how you file your taxes and what your Modified Adjusted Gross Income is. The table in the link shows the exact limits.
These should hopefully fully answer your question! Please indicate if this answer was helpful for you!
Joe Allaria, CFP®, MBA