Signature Wealth Management
Benjamin Hovland is a Financial Advisor with Signature Wealth Mangement, a firm that is changing the paradigm of what clients should expect from an independent broker-dealer. They are doing so by transforming the way they lead into the way they listen. Benjamin believes in consistent, timely and responsive service. Benjamin and his team's service system focuses on the client and the details of their financial situation and goals. Through their planning process Benjamin can provide a unique, tailored plan that guides his advice and ongoing relationship.
Benjamin was previously an advisor and insurance specialist with Ameriprise Financial. He earned his CERTIFIED FINANCIAL PLANNER™ and Chartered Retirement Planning Counselor (CRPC®) designations. He has his Series 7 and 66 Life, Accident, Health and Variable insurance licenses. Benjamin graduated with his Bachelor of Arts in Sociology at the University of Minnesota.
Benjamin and his family reside in Plymouth, Minnesota. He is married to his wife Katrina and is the proud father of Livian and Adeline. His hobbies include golf, outdoor activities, hunting, fishing, and grilling meals for his family.
BA, Sociology, University of Minnesota
Assets Under Management:
Signature Wealth Management is a marketing name for securities and investment advisory services offered through SagePoint Financial, Inc. Member FINRA/SIPC.
AI Marketing Video Ben Hovland
You have reached a magical age according to the IRS which means you can no longer defer the income taxes. Any amounts withdraw from the pre-tax account will be taxable as ordinary income. If you choose not to withdraw your Required Minimum Distribution (RMD) the IRS can penalize you up to 50% of the amount you should have withdrawn. Your RMD should be around $7,800 which means if you choose not to withdraw, your penalty would be around $3,900. Here is a link to determine your RMD for this year as well as any future RMDs - https://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf. If you have your account held with an insurance company or brokerage firm, a simple phone call should help you determine what this year’s RMD is. Since you turned 70.5 this year, you technically don’t need to withdraw your funds since you can wait until the year following. With that said, you will be required to withdraw this and next year’s amount in the same year which is why most people choose to withdraw in the year they turn 70.5. For my clients, they choose to withdraw in December and use toward their Holiday purchases.
This is a question that has a lot of moving parts so I will highlight a couple items to be aware of. First off, if you choose to file benefits prior to your Full Retirement Age (FRA) and continue to work you may have benefits withheld. Once you reach the income threshold, Social Security will withhold $1 for every $2 until the year you reach your FRA and then they may withhold $1 for every $3. Once you are your FRA, then you can earn as much income as you want without facing the withholding penalty. Also, depending in your income, your benefits may be taxable, up to 85%. There is a difference between taxation and withholding so you could face both by collecting benefits early. Visit www.ssa.gov to review your specific benefit but as a rule of thumb, your benefits should be reduced by around 8% per year you choose to withdraw the benefits early. If your benefit is higher than your spouses, she can step up to your benefit at death which would be the reduced amount if you choose to file early.
This is a great question. You can visit Yahoo Finance to determine if a company pays a dividend or not. Search the company by name or ticker symbol to find the specific information on that company. Generally, companies which fall on the value side of investing pay a dividend. They tend to be companies that focus on consumer staples, like utilities, food or other sectors that consumers “need” to live their daily lives. Other areas that can pay dividends are Real Estate Investment Trusts (REITs) and mid-stream energy companies. Companies which fall on the growth side of investing tend to reinvest their dividends back into the company to try and grow their stock price. They tend to be companies which that focus consumer discretionary like technology. Generally, companies who pay a dividend tend to have a more staple share price than companies who don’t. Also, companies who pay a dividend offer a return even if the price doesn’t fluctuate due to the dividend which is why some retirees like dividend paying companies.
As you probably suspected, it depends. I recommend establishing an account on ww.ssa.gov to review your statement and benefits. For some government employees, you may fall into a Social Security offset due to the pension you would be collecting. For additional information on this, visit https://www.ssa.gov/planners/retire/gpo-wep.html. From my understanding, this can happen due to being eligible for a specific type government pension which means you may not have paid into Social Security while employed through the that department of the government. If you are unable to determine if your benefits will be impacted, I suggest calling Social Security directly since they should be able to address your concerns. Without reviewing your statements, I cannot state if your Social security benefits would be impacted by your pension benefits. Good luck with your search.
It depends. You will need to contact the insurance company to determine what your cost basis is. Once you have that number, here is how it would work:
$40,000 of cash value
If the cost basis is $40,000 or less, no taxes will be due.
If the cost basis is $40,001 or higher, than the amount of the basis will be taxable as ordinary income.
If you would like to defer the tax and want to keep it invested, you could consider 1035 exchanging into a non-qualified annuity. This would defer the tax until a later date. If you choose this option, the funds are unavailable without an IRS penalty until age 59.5.